Share Market Highlights 22 September 2023: Sensex, Nifty extend losses into 4th session; HDFC shares weigh

The rupee appreciated 19 paise to 82.94 (provisional) against the US dollar on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment.

Forex traders said the decision of JPMorgan Chase & Co to include Indian government bonds in its benchmark emerging market index is expected to have far-reaching implications for India’s debt market and global investors.

At the interbank foreign exchange market, the local unit opened at 82.75 against the US dollar and touched the lowest level of 82.97 in the day trade.

The rupee finally settled 19 paise higher at 82.94 (provisional) against the previous close.

On Thursday, the rupee settled at 83.13 against the US dollar.

Equity benchmark indices Sensex and Nifty stayed on the back foot for the fourth straight session on Friday as investors offloaded healthcare, consumer durable and commodity stocks amid a weak trend in global markets.

Foreign fund outflows and heavy selling in HDFC shares also hit investor sentiments, traders said.

After oscillating nearly 500 points between gains and losses during the day, the 30-share BSE Sensex declined 221.09 points or 0.33 per cent to settle at 66,009.15. During the day, it hit a high of 66,445.47 and a low of 65,952.83.

The Nifty fell 68.10 points or 0.34 per cent to end at 19,674.25.

In the early trade, the benchmark indices had climbed after global financial firm JP Morgan said it plans to include Indian government bonds (IGBs) or government securities (G-Secs) into its Emerging Market index from next year, a move that will bring down borrowing cost for the government.

Improved export demand for exports lifted prices of certain orthodox tea varieties by around ₹10 on average in the Kochi auctions, with the rates increasing .

Auctioneers Forbes, Ewart & Figgis said that the market for Nilgiri whole leaf and brokens in sale 38 was firm and sometimes dearer by a longer margin of ₹5-10, and witnessed some attractive prices. Good demand was noticed from all sections of the trade, including major packeteers and exporters. The offered quantity was 3,43,672 kg, with a sales percentage of 80.

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Axis Bank Ltd’s shares were up by 0.57 per cent after the company introduced ‘NEO for Business’, a transaction banking platform tailored for Indian Micro, Small, and Medium Enterprises (MSMEs).

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he Indian rupee ended higher on Friday after JPMorgan announced it will include the country’s government bonds in its emerging market index, which could lead to billions of dollars of inflows.

The rupee ended at 82.93 against the U.S. dollar, compared with 83.09 in the previous session.

The currency gained 0.3% this week even as the dollar index rose to an over 6-month high in Asia and was on track for its 10th consecutive weekly gain.

Importers’ dollar purchases capped gains in the rupee after the currency opened at 82.8225 on Friday, traders said.

India’s inclusion in JPMorgan’s index will start on June 28, 2024, and extend over 10 months. This is estimated to lead to inflows of $22 billion-$30 billion, according to analysts.

Mr. Vikas Garg – Head of Fixed Income, Invesco Mutual Fund

Much awaited India’s inclusion in global bond indices becomes a reality now which will strengthen India’s external fundamental factors. Inclusion in JP Morgan index alone can prompt inflow of more than USD 25 bn over next 2 years thereby lowering market yields and also support currency. It may also open doors for inclusion in other global debt indices. Timing couldn’t have been better as the global backdrop has become more challenging with elevated rates, surge in crude prices and currencies under pressure. Overall, a big positive for Indian fixed income market.

Kranti Industries has received order from Carraro Drive Tech Italia S.p.a. worth 55,673.28 Euro for production of Beam Trumpet. Kranti Industries stock fell by 2.86% on the BSE, at ₹85.74.

The stock rises by 5% on the NSE, trading at ₹730.90.

The stock trades at ₹61.42, up by 0.03% on the BSE.

Major gainers on the NSE at 3 pm:

IndusInd (3.01%); Maruti (2.25%); SBI (1.75%); M&M (1.41%); Bajaj Finserv (1.17%)

Major losers:

Dr Reddy (-2.73%); Wipro (-2.35%); Cipla (-1.77%); Bajaj Auto (-1.64%); Ultratech Cement (-1.52%)

Stocks advanced on BSE at 3 pm on September 22 were 1,706 against 1,865 stocks that declined; 171 stocks remain unchanged. Total stocks traded were 3,742. The number of stocks that recorded a 52-week high was 143, and those that hit a 52-week low was 23.

Central Bank of India stock rises by 5.86% on the NSE, trading at ₹49.65.

The stock declines by 1.23% on the NSE, trading at ₹300.95.

The stock declines by 0.33% on the BSE, trading at ₹3.05.

KPI Green Energy Limited has been awarded a Letter of Intent (LOI) for a 145.20 MW Wind-Solar Hybrid Power Project (comprising 145.20 MW Wind and 50 MW Solar) by Ayana Renewable Power Four Private Limited, based in Bangalore. This project will be located in the state of Gujarat and falls under the Company’s ‘Captive Power Producer (CPP)‘ business segment.

The QIB portion has been subscribed 4.21 times, NII 9.78 times; and retail 5.52 times. The issue closes today.

The QIB portion has been subscribed 5.35 times, NII 1.59 times, and retail 0.52 times. The issue closes today.

Ambuja Cements Limited (ACL) has incorporated new wholly-owned subsidiary companies - LOTIS IFSC Private Limited; Ambuja Concrete North Private Limited; and Ambuja Concrete West Private Limited.

Arabian Petroleum’s IPO will open for subscription on September 25, 2023, with the subscription period set to conclude on September 27, 2023. The company has fixed the issue price at Rs 70 per share, per a statement by the company.

Arabian Petroleum aims to raise Rs 20.24 crore from the public offer, with each lot consisting of 2,000 equity shares. The offering comprises a total of 2,892,000 equity shares, with specific allocations for different investor categories. Of these, 1,372,000 equity shares are reserved for Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) categories each, while the remaining 148,000 equity shares are reserved for market makers.

Arabian Petroleum shares will be listed on the NSE Emerge platform.

Arabian Petroleum is a one-stop shop for all lubricants and boasts a manufacturing plant with a capacity of 40,590 Kiloliters Per Annum (KLPA). The company has a robust distribution network encompassing 400 dealers and 9 depots.

The company also serves esteemed PSUs, including the Indian Armed Forces, BHEL, BEML, Railways, BEL, among others.

The stock slips by 0.90% on the NSE, trading at ₹298.10.

The stock slips down by 0.45% on the NSE, trading at ₹562.45.

PNB Gifts (20%)

Nelcast (19.98%)

Housing & Urban Development (13.85%)

Emmbi Industries (12.43%)

IFCI (11.36%)

Inflame Appliances Ltd.’s shares were up by 5.70 per cent after the company reported an agreement with Havells for the supply of Chimneys and OTGs (Oven Toaster Grills). The finalised models are set to go into production, with business operations slated to commence in October 2023.

The shares were up by 6.92 per cent to ₹666.60 on the BSE.

HCL Tech and ANZ banking group in New Zealand and the Pacific, have expanded their relationship with new engagement that will transform latter’s digital employee experience across 33 countries. HCL stock slips by 0.22% on the NSE, trading at ₹1,275.25.

Kings Infra Ventures Ltd informed the exchange Parshottam Rupala, Minister of Fishers, will launch SISTA360- a first-of-its-kind digital platform for aquaculture solutions at a seminar on September 25 in New Delhi. Kings Infra Ventures stock is up by 0.97% on the BSE, trading at ₹151.

Saakshi Medtech & Panels Limited is pleased to announce the opening of its Initial Public Offering (IPO) for subscription on September 25, 2023, with the subscription period set to conclude on September 27, 2023. The company’s shares are proposed to be listed on the NSE SME platform.

Saakshi Medtech & Panels Limited is offering its equity shares in the price range of Rs 92 to Rs 97 per share, as stated in a company statement. The primary objective of this IPO is to raise Rs 45.16 crore at the upper price band. Each lot consists of 1200 equity shares.

The offering comprises a total of 4,656,000 equity shares, with specific allocations for different investor categories. The allocation includes 2,209,200 equity shares reserved for Qualified Institutional Buyers (QIBs), 663,600 shares for Non-Institutional Investors (NIIs), 1,548,000 shares for Retail Individual Investors (RIIs), and 235,200 shares set aside for market makers.

By Rajeev Radhakrishnan, CIO – Fixed Income

Starts June 28, 2024 – 10 months till March 31, 2025 for 1% increase in weight each month

Indian FAR Securities (excluded less than USD 1 bn o/s and maturity before Dec 2026) are eligible with combined notional value of USD 337 bn – List Attached

As of Sep 21, 2023 2.5% of o/s FAR securities was held by FPIs USD 8.5 bn

Overall, also India Govt Bond Market size was USD 1.3 trn as on Sep 8, 2023 (attached CCIL) and overall FPI Holding was USD 8.5 bn only

Weight would be 10% which is highest in the Index (China, Indonesia, Mexico, Malaysia and Brazil all at 10%)

Index Yields as of today goes up by 33 bps for JP EM - Global Index, duration by 0.19 yrs

73% of benchmarked investors agreed to inclusion vs ~50% last year

Fiscal / Currency Impact

Apart from one time flow of USD 23 bn which is about 20% of net GSec Supply estimate for FY24 – India takes a leap forward in terms of globalisation of debt market which has seen very idiosyncratic interest in the past. It puts spotlight on government fiscal as well as RBI which as the Central Bank works to reduce volatility in the currency markets. Given the democratic set up, FRBM targets, forex reserves (USD580-600 bn) credible regulators, none of these seem onerous but nevertheless it does subject the country to more scrutiny in terms of its monetary, fiscal and external account policies.

SBI Cards and Payment Services Limited has approved allotment of 131,700 Equity shares of ₹10 each to eligible participants pursuant to the exercise of options under the SBI Card - Employee Stock Option Plan 2019 (ESOP Scheme 2019) at the exercise price of ₹152.10 per share.

The stock inches up by 0.50% on the NSE, trading at ₹804.

IndusInd bank has allotted 1,06,930 Equity Shares of ₹10 each on September 22, 2023 to those grantees who had exercised their option under the Company’s Employee Stock Option Scheme. The stock rises by 2.89% on the NSE, trading at ₹1,452.15.

The Supreme Court Grants SpiceJet Six Months to Clear $3M Arrears to Credit Suisse.

Global pharma major Lupin Limited (Lupin) has signed an agreement to acquire five brands in strategic therapy areas - Gastroenterology, Urology and Anti-infectives from Menarini (A. Menarini India Private Limited and A. Menarini AsiaPacific Holdings Pte. Ltd.), along with the associated trademark rights. The brands are Piclin (Picosulphate Sodium), Menoctyl (Otilonium Bromide), Sucramal O (Sucralfate + Oxetacaine), Pyridium (Phenazopyridine) and Distaclor (Cefaclor).

The consideration is about INR 1010 million. Turnover of the said brands for the year ended March 31, 2023 was about INR 322 million.

Lupin stock falls by 1.53% on the NSE, trading at ₹1,110.

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Finance Ministry on Friday expressed confidence that JPMorgan’s decision to include Indian government bonds in its widely tracked emerging market debt index will reward long-term investors.

“It is a welcome development showing confidence in Indian Economy,” Economic Affairs Secretary Ajay Seth said.

The spices complex was mixed with turmeric contracts dropping. Turmeric December futures declined by ₹106 to ₹14,960 a quintal. Jeera (cumin) November contracts gained ₹650 at ₹62,250 a quintal. Dhania (coriander) November futures increased by ₹40 to ₹7,330 a quintal.

Among the 88 securities that reached the price band limit, 44 reached the upper band, 34 reached the lower band, and 10 hit both hte bands .

Inflame Appliances Ltd has been approved as a supplier and entered into an understanding with Havells for the supply of Chimneys and OTGs. The stock rises by 2.65% on the BSE, trading at ₹640.

Mahavir Lunawat, Managing Director, Pantomath Capital Advisors

India has notched the top position in world rankings in terms of initial public offerings (IPOs). The IPO graph of India at the global level has witnessed a steady growth trajectory. For instance, it was 6% in 2021, 11% in 2022, and now stands at 13% year-to-date in 2023.

A push provided by foreign institutional investors, consistent corporate growth, and steady monsoon predictions are some of the factors that have led to buoyancy in the market.

Next week looks promising, the focus is on Signature Global, Sai Silks and Manoj Vaibhav Gems Jewellers, all aiming to gather over Rs 2,200 crore from investors

The news is a long-standing win for India’s policymakers and markets have rightfully cheered the announcement. Despite the negativity around global bond yields, we believe our markets will remain quite resilient after this inclusion. In the medium term, our target for the benchmark 10-year bond yields at 6.75% remains on track.

For the medium term, once this entire noise around Fed hikes and global yields stabilizes, we believe peak market rates are behind us and market yields could gradually soften. From a demand perspective, markets could see incremental buying from active foreign funds. That would probably be less than $ 5 billion before the index inclusion.

We have been macro-bullish on the perspective that it’s very difficult for the RBI to hike because inflation is going to be on the lower side. The only spoiler has been global yields and oil. Global yields are near its peak, and we don’t expect the Fed to hike rates further.

Oil prices remain a wildcard. With Crude prices spiking to US$95, markets are likely to bake in some degree of pessimism into the Indian bond markets.

However, the two aspects could negate each other over the medium term. Finally, the inclusion by JP Morgan could be a precursor for other global index providers to add domestic bonds to global indices, amplifying the impact of flows. And hence the positive bond story is likely to continue for a while.

Markets have been a buzz on possible inclusions, the confirmation saw markets react positively across the yield curve with long bonds seeing heightened trading activity. The 10 benchmark 10-year G-Sec stood at 7.10%1 at the time of writing this note.

-- Axis Mutual Fund

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“JP Morgan’s inclusion of India in the Emerging Market Index is a very positive move from the perspective of the Indian economy in general and the capital market in particular. The foreign demand for GoI bonds will push down their yields. This will happen much earlier than the date for inclusion, which is June 2024. Most of the corporate bonds yields are benchmarked to the yields on government bonds. Therefore, yields will decline pan India, across industries. The decline in the cost of capital will translate into higher profits for the corporate sector, which, in turn, will boost stock prices enabling the stock market to scale higher levels.”

Vaibhav Global Ltd has allotted 42,717 Equity Shares of ₹2 each pursuant to “Vaibhav Global Employee Stock Option Welfare Trust” under various employee benefit schemes of the Company. The stock rises by 2.57% on the NSE, trading at ₹433.50.

On MCX, gold October futures were up ₹13 to ₹58,835 per 10 gm. Silver December contracts gained ₹467 at ₹75,535 a kg.

Kaynes Technology India has proposed to accept the offer and invest an amount over ₹22 crore to acquire 49,12,281 Equity Shares of Kemsys Technologies Private Limited (Kemsys), Wholly owned Subsidiary of Company, of ₹1 each at a premium of ₹44.60 on rights issue basis.

Kaynes Technology stock declines by 3.28% on the NSE, trading at ₹2,000.

MCOS Global, a leading infrastructure company and supplier of construction materials, has partnered with Larsen & Toubro (L&T) to construct the Dhubri-Phulbari Bridge.

MCOS will provide vital construction materials, with the project valued at INR 300-500 Crores over 5-6 years. This bridge, close to the Bangladesh border, will connect Assam and Meghalaya, becoming India’s second-longest overwater bridge at over 19 km.

DLF stock inches up by 0.64% on the NSE, trading at ₹520.20. The company’s rental arm DCCDL recently raised ₹1,100 crore through issuance of non-convertible debentures on a private placement basis.

In Asian trade, gold ruled around $1,925 an ounce with prices ending lower again for the week. Gold dropped below $1,930 this week as the US Fed made a hawkish pause and the dollar, the main currency to trade in the yellow metal, declined. Gold was quoted at $1,925.51 an ounce. Silver ruled stable at $23.67 an ounce.

SignatureGlobal India IPO has been subscribed 2.63 times as of 12:33 pm on September 22, 2023. The QIB portion has been subscribed 0.65 times, NII 5.76 times; and retail 4.13 times. The issue closes today.

Sai Silks Kalamandir IPO has been subscribed 0.77 times as of 12:27 pm on September 22, 2023. The QIB portion has been subscribed 1.49 times, NII 0.77 times, and retail 0.38 times. The issue closes today.

NCC Ltd, in joint venture with J. Kumar Infra Projects Limited (JKIL), has been awarded the contract relating to design, construction and operation of twin tunnel from Film City Goregaon to Khindipada (Amar nagar) Mulund including box tunnel at Film City, Electrical, Mechanical and associated works by Brihanmumbai Municipal Corporation at the cost of ₹6,301.08 crore.

NCC stock inches up by 0.70% on the NSE. trading at ₹150.50.

NBCC (India) stock rises by 1.14% on the NSE, trading at ₹57.85, after it bagged orders worth ₹100 crore by SAIL for construction of various development work at township and mines of SAIL Bhilai Steel Plant.

“We welcome this development. JP Morgan has made this decision on their own. It attests to the confidence that financial market participants and financial markets, in general, have on India’s potential and growth prospects and its macroeconomic and fiscal policies. Just as long-term equity investors have been amply rewarded by investing in Indian markets, so will long-term investors in Indian government bonds be.”

Hindustan Aeronautics Ltd informed the exchange that John Moris & Co., Chartered Accountants has been appointed by C&AG as Statutory Auditors of the Company for the FY 2023-24. HAL stock falls by 1.11% on the NSE, trading at ₹3,872.

Major gainers on the NSE at 12 noon:

IndusInd (2.52%); SBI (2.04%); Maruti (1.90%); Tech Mahindra (1.75%); Coal India (1.62%)

Major losers: Dr Reddy’s (-2.06%); Wipro (-1.88%); Power Grid (-1.66%); Cipla (-1.44%); Sun Pharma (-1.22%)

Stocks advanced on BSE at 12 noon on September 22 were 1,703 against 1,697 stocks that declined; 203 stocks remain unchanged. Total stocks traded were 3,603. The number of stocks that recorded a 52-week high was 129, and those that hit a 52-week low was 20.

During Friday afternoon trading, Indian benchmark indices, namely the Sensex and Nifty, exhibited limited movement within a narrow range. Around noon, the Sensex posted a marginal gain of 47 points, reaching 66,277, while the Nifty index recorded a 15-point increase, trading at 19,757.

On the NSE, 27 stocks reached their 52-week highs, while 9 were at their 52-week lows.

Among the Nifty50 stocks, top gainers included IndusInd Bank, SBI, TechMahindra, Maruti Suzuki, and HDFC Life, while laggards were Dr. Reddy’s, Wipro, PowerGrid, Cipla, and Sun Pharma.

Higher interest rates have caused liquidity to dwindle in the markets, elevating the cost of capital. Foreign investors have been net sellers this month, divesting shares worth $996.2 million as of September 20.

In terms of sectoral indices, the Nifty PSU Bank index led the gainers, surging over 3 percent, while the Nifty Pharma index was the top performer on the downside.

Indian Bank (6.63%)

Central Bank of India (5.44%)

Canara Bank (5.35%)

Union Bank (5.19%)

Bank of Baroda (4.49%)

ideaForge Technology stock inches up by 0.71% on the NSE, trading at ₹940, after the company bagged order worth about ₹58 crore to supply 400 Surveillance Copter with accessories to Strategic Marketing.

JPMorgan will include Indian government bonds in its Government Bond Index-Emerging Markets (GBI-EM) from June 2024, the Wall Street bank said on Friday.

The inclusion, a first for the country, could lead to billions of dollars of inflows into local currency-denominated government debt and bring down bond yields, while also providing some support for the rupee.

AVG Logistics Ltd’s shares were up by 0.73 per cent after the company announced bagging a long-term contract with a multinational FMCG company. The contract is valued at approximately ₹72 crore and will be executed over a period of three years.

A Finance Ministry report says 6.5 per cent GDP growth estimate for FY24 with symmetric risks is ‘comfortable’. In its monthly economic review, the Economic Affairs Department said that the risks of a stock market correction and geopolitical developments could potentially hurt investment sentiment in the second half of the financial year. But, the impact of these developments on underlying economic activity in India should be relatively contained.

Sunteck Realty and IFC have joined forces to address the shortage of affordable and mid-income housing in India. The joint initiative will see an investment of up to ₹750 crore (US$90 million) to develop approximately 12,000 high-quality housing units across four to six green housing projects within the Mumbai Metropolitan Region (MMR) of Maharashtra. IFC’s proposed contribution is up to ₹330 crore (US$40 million), while Sunteck Realty will provide the remaining funds.

Bank Nifty opened today’s session higher at 44,707.35 against Thursday’s close of 44,623.85. The index, which stayed volatile during the initial hour, is now trading at 44,850, up 0.5 per cent. Read more

Major gainers on the BSE at 11am:

IFCI (10.64%); ITI (10%); GAEL (8.18%); Housing Urban Developement (7.28%); Canborundum Universal (5.90%)

Major losers: EKI (-10%); Glenmark (-4.70%); RattanIndia Power (-4.22%); IDFC Sensex (-3.91%); Saregama (-3.61%)

The inclusion of Indian bonds in JPMorgan’s emerging-market index is expected to attract foreign investments, and help bolster the Indian currency, according to market watchers.

JPM Government Bond Index-EM Global diversified Index has assets under management of about $200 billion. A 10 per cent weightage on the index will mean that about $20 billion dollar will flow into these bonds.

Indian rupee opened 27 paise higher against the US dollar on Friday after JPMorgan announced that it will include India in its emerging market bond index next year. The local currency opened at 82.82 a dollar as compared to previous close of 83.09.

The sell-off in the Nifty 50 and Sensex continues. The benchmark indices are under pressure for the fourth consecutive day. Sensex is trading at 66,054, down 0.26 per cent and Nifty at 19,674 is down about 0.35 per cen

Equippp Social Impact Technologies has announced appointment of Guruprasad Sowle, Founding Board Member and President, Indus International Research Foundation (IIRF), USA, focused on Indo - US affairs, as an Advisor to the organization.

Again, the announcement would aid sentiment on the INR in FY24, which has been under pressure due to rise in crude oil prices and dollar strength. We revised down USDINR trading range to 81.50 to 83.50 for the remainder of FY24 (from 82 to 84 previously).

The real impact will be in FY25 when actual inflows come. We estimate FY25 CAD as 2% of GDP or US$81bn. Net FDI inflows is assumed to be US$28bn and hence the basic balance (CAD + FDI) would be US$53bn deficit. JP Morgan Index related inflows would be ~US$18.9bn in FY25, which accounts for around 36% of the basic balance deficit. In case index inclusion into Bloomberg Bond Index takes place than Index related inflows would account for 64% of Basic Balance deficit. Hence FY25 Balance of Payments is likely to be in surplus and it could be significant if India gets included not just in JP Morgan index but Bloomberg Global Aggregate Index also.

Impact on G-sec yields

The anticipation of Index inclusion has already driven 10-yr g-sec yields to 7.14% levels yesterday and in the remainder of FY24 we could see yields moving towards 7.0% due to announcement impact. Moreover, the supply dynamics are better in H2 with lesser g-sec supply. In case inclusion into Bloomberg Global Aggregate Index is also announced then 10-yr yield could fall below 7.0% by March 2024.

The real impact on g-sec yields will be felt in FY25, when FPI inflows related to JPM GBI EM will start. As mentioned above US$23.6bn of FPI inflows are expected over July 2024 to May 2025. Net G-sec supply in FY25 is likely to be INR12tn, assuming central government fiscal deficit of 5.5% of GDP. Long-only players – pensions, insurance and PFs have been prominent players in fixed income market as the share of formal sector rises in the economy. Indeed, in FY23, investor’s net purchased INR4.4tn, which is estimated to rise to INR4.9tn in FY25. Banks which are the largest holder of g-secs (at 36.6% of outstanding G-secs as of March 2023), are another source of demand which will hold-up in FY25. Two factors will support demand from banks – NDTL growth and rate cut expectations. In FY23 banks net bought INR4.7tn of g-secs, could rise to INR4.8tn in FY25. JP Morgan index related FPI inflows could take-up INR1.6tn in FY25. Total demand from these three segments alone - banks, investors and index related flows, would account for more than 90% net supply in FY25. Hence demand for g-sec could exceed supply by INR900bn next year.

In case inclusion in Bloomberg Bond Index takes place then additional FPI inflows into FAR g-secs of INR1.2tn could come which would further widen the gap between demand of g-sec and supply.

JP Morgan to include India in its Government Bond Index – Emerging Markets starting June 28 2024. India will be included GBI EM Global Diversified Index (GBI EM GD) which has an funds with AUM of US$213bn benchmarked to it. India will get a weight of 10% which will be added from next year, 1% will be added per month (June 28 2024 to March 31 2025). India is also expected to enter other JP Morgan bond indexes - JADE Global Diversified index, JESG GBI-EM index and other aggregate suite of local currency indexes. The AUM of funds tracking JP Morgan GBI-EM family of indices are US$236bn. The index inclusion could result in inflows of US$23.6bn into FAR g-secs starting from next year and completed by April / May 2025. FPI holdings of outstanding g-sec could rise to 3.4% by April / May 2025 v/s 1.7% in September 2024.

Post the inclusion into JP Morgan EM Bond Index, India’s chances of Inclusion into Bloomberg Global Aggregate Index also rises. In case India is included in the Bloomberg Global Aggregate Index, it could result in inflows of US$15bn to US$20bn with India’s weight ranging from 0.6% to 0.8%. Given the relatively small weight, India’s inclusion could take place in one go, in case index inclusion takes place. Moreover, in BGAI country’s weight will continue to rise as market capitalization of FAR securities rises.

Mirae Asset S&P BSE Sensex ETF NFO opens today and closes on September 26. ETF will list on exchanges within 5 days from the date of allotment.

AVG Logistics stock slips by 0.03% on the NSE, trading at ₹294.90. The company had received order from an existing multinational customer in the FMCG Industry.

Zaggle Prepaid made its debut on the stock markets today by listing at Rs 164 per share, which is exactly a flat listing considering its issue price of Rs 164.

Zaggle is a uniquely positioned player in the fintech industry, but it has a major dependency on third parties and has faced negative cash flow and a decline in its profitability in recent years. The IPO valuation was also high. Investors should exit their positions, but those who want to hold for some gain should maintain a stop loss at 148.

Another listing was of Samhi Hotels at Rs. 134.5 per share, a premium of 6.7% to its IPO price of Rs. 126.

On the one hand, the company is loss-making, and its financial performance has been poor for the last three years. On the other hand, the company is making progress on cutting losses, and the sales multiple is 3.7x, which is below the industry average. Investors should book profit and exit their position, and those who still want to hold should maintain a stop loss at the listing price.

SPEL Semiconductor stock rises by 4.13% on the NSE, trading at ₹57.79. Its board had approved a proposal to sell or transfer or otherwise dispose of the land of the Company to an extent of not exceeding 8.14 Acres situated at 5, CMDA Industrial area Maraimalai Nagar, Tamil Nadu.

Sai Silks Kalamandir IPO has been subscribed 0.39 times as of 10:45 am on September 22, 2023. The QIB portion has been subscribed 0.51 times, NII 0.41 times, and retail 0.31 times. The issue closes today.

Earlier today, JP Morgan announced to include India’s sovereign bonds to its Global EM Index and the index suite. The inclusion will take place on 28th June 2024 and will be staggered over a period of 10 months. India’s weightage is set to increase to a maximum of 10% in GBI-EM Global Diversified and ~8.7% in the GBI-EM Global index.

Going by market estimates, the inclusion could lead to passive inflows as index tracking funds increase their holdings in Indian bonds. According to estimates this could be anywhere between $25-30 bn in the first year. As of now, 23 bonds worth a notional value of $330bn are eligible to be added in the index in a staggered way over 10 months – 10% of this (maximum weightage) could therefore lead to close to $30 bn passive inflows.

SignatureGlobal India IPO has been subscribed 1.93 times as of 10:42 am on September 22, 2023. The QIB portion has been subscribed 0.63 times, NII 3.83 times; and retail 3.15 times. The issue closes today.

Channel checks by JM Financial Institutional Securities suggest that a weak demand scenario for tiles could drive softer volume growth for leading tile companies in 2QFY24, though volume will increase 5-6% QoQ. It believes tile volume growth will pick up from 3QFY24 as leading construction-related categories (wires, plumbing pipes, etc.) indicate reasonable strength in construction activity, and tile demand comes with a lag of 1-2 quarters.

Gas prices, on the other hand, remain steady, leading to stable/marginal increase in gas cost QoQ for Kajaria/ Somany, though it will decline substantially YoY. While the near-term remains challenging, JM Financial analysts are still optimistic on demand recovery in 2HFY24. Maintains BUY on Kajaria (KJC) and Somany Ceramics (SOMC) and maintains HOLD on Cera Sanitaryware.

Marshall Machines Limited has announced the import of world class European technologies. The stock inches up by 0.75% on the NSE, trading at ₹66.90.

Crude oil futures traded higher on Friday morning following the Russia’s decision to restrict exports of gasoline and diesel to stabilise fuel prices in its domestic market.

At 9.54 a.m. on Friday, November Brent oil futures were at $93.87, up by 0.61 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $90.34, up by 0.79 per cent.

October crude oil futures were trading at ₹7,504 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹7,483, up by 0.28 per cent, and November futures were trading at ₹7,411 against the previous close of ₹7,396, up by 0.20 per cent. Read more.

Marine Electricals (India) Ltd’s subsidiary, Evigo Charge Private Ltd, has received orders amounting to ₹3.91 crore to supply and install chargers from Prestige Group of companies, Bangalore and from Goel Ganga India Group of Companies for their residential and commercial complexes. The delivery period for both orders is 4 to 6 weeks. The stock declines by 0.58% on the NSE, trading at ₹59.75.

The inclusion of Indian bonds in JP Morgan’s emerging-market index is expected to attract foreign investments, and help bolster the Indian currency, according to market watchers.

JPM Government Bond Index-EM Global diversified Index has assets under management of about $200 billion. A 10 per cent weightage on the index will mean that about $20 billion dollar will flow into these bonds.

“India’s inclusion in the global bond index is a pivotal step towards international recognition and access to vital capital for growth. This move promises increased demand for the Indian rupee, potentially buffering against depreciation. Lower borrowing costs can fuel essential infrastructure projects, while heightened liquidity may foster more efficient trading conditions,” said Suresh Swamy, partner, Price Waterhouse & Co.

Shares of hotel owner SAMHI Hotels, whose Rs 1370-crore IPO was subscribed 5 times, listed at 3.6% premium on the BSE today. The stock opened at Rs 130.55 compared to IPO issue price of Rs 126. Upper price band is Rs 156.65 and lower price band is Rs 104.45 for today. The stock currently trades at Rs 134.

Zaggle Prepaid Ocean Services stock listed at ₹164 on the NSE, currently trades at ₹166.40. The stock listed at ₹162 on the BSE, currently at ₹166.60.

Equity benchmark indices rebounded in early trade on Friday after a three-day decline but later gave up initial gains to quote in the negative territory.

The 30-share BSE Sensex climbed 187.71 points to 66,417.95 in early trade. The Nifty advanced 49.8 points to 19,792.15.

But, later both the benchmark indices pared early gains and were trading lower. The Sensex quoted 123.33 points lower at 66,106.91 and the Nifty traded 71.25 points down at 19,671.10. Read more.

This is great news and one of the long-awaited one by the market. This JP Morgan index is 240 bln USD. India will be 10% of it which means 24 bln USD which is huge. This will reset the base rate for India and the yield should come down sharply. India’s cost of borrowing will come down. Since covid, the fiscal deficit in India has remained elevated due to higher borrowing. This event will ease borrowing pressure as a large part of the borrowing will be observed by this route. Banks Treasury will be flushed with mark-to-market gains. At the same time, it is a big positive for our currency as a big dollar flow will be there due to the buying of gsec. As far as the equity market is concerned it is positive for Banks, NBFC, leveraged companies etc By and large it is a big macro positive for India.

The rupee appreciated by 38 paise to 82.75 against the US dollar in early trade on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment.

Suzlon Group has received work order for the development of a 29.4 MW of wind installed capacity for 100 MW co‐located wind‐solar hybrid project of BrightNight, a global renewable power producer. Suzlon will install 14 units of their S120 – 140m wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each at Osmanabad in Maharashtra. The project is expected to be commissioned in phases, beginning in April 2024.

The stock declines by 1.57% on the NSE, trading at ₹25.10.

Innovative Ideals and Services (India) gains by 4.97% on the BSE, trading at ₹16.90, after the company received purchase order worth of ₹35 lakh from Meditek Lifecare LLP.

DMR Hydroengineering & Infrastructures Ltd stock tumbles by 4.99% on the BSE, trading at ₹69.31. The company had received a work order for engineering services for Daudhan Dam under Ken-Betwa Link Project in the state of Madhya Pradesh from Afcons Infrastructures Limited.

Morning view on the market from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The Fed’s hawkish pause message has created a global risk-averse sentiment in global equity markets. The spike in the dollar index to 105.52 and the US 10-year bond yield shooting up to a 16-year high of 4.5 % are negative for equity markets, particularly emerging markets. The FIIs have reversed their ‘Buy India strategy’ which they have been following in the last 3 months with selling to the tune of Rs 16934 crores in September through 21st.

Countering this negative trend is the hugely positive news of JP Morgan including India in the Emerging Market Bond Index with a weightage of 10% from June 2024 onwards. This will reduce bond yields and the consequent decline in the cost of borrowing will boost the bottom line of companies.

In the near-term, FIIs may press further selling in response to rising US bond yields. If this happens it will open up opportunities for investors to buy quality large-caps, particularly banking stocks which will benefit a lot from the bond inclusion.”

Madhavi Arora, Economist at Emkay Global Financial

The much-anticipated inclusion of India in JP Morgan GBI-EM index will be effective from 28th Jun’24, accounting for post-announcement operational lags. India’s weight of 10% will be staggered over 10 months, leading to passive inflows of USD22bn (USD26bn accounting for addition in other smaller indices). The actual flows though may be higher, contingent on market dynamics and active flows. Structurally, this will lower India’s risk premia/cost of funding, enhance the liquidity and ownership base of G-Secs and help India finance its fiscal and CAD. This does not immediately pave way for inclusion in FTSE and Bloomberg indexes, which have more stringent conditions (FPI taxation/Euroclear). But it could have a demonstration effect in the medium term as the lower risk premia could trigger positive externalities. Near term, we expect bond yields and INR to reverse gains after the initial euphoria, tracking global markets. However, the trend will again reverse in favour of bonds by end-Mar’24, with 10-yr yield coming off well below 7%. For 2HFY24, we see USD-INR ranging 82.25-84.25, with tactical RBI intervention keeping it middle of EM Asia pack.

“India’s inclusion in JP Morgan emerging markets bond index is great news which would give a booster access to global investors to participate in the world’s fastest-growing large economy that would offer them the highest alpha returns in the emerging region. I believe it is after waiting for 10 odd years India has finally been included in the JP Morgan EM Bond Index today effective 28th June 2024. The credit goes to the Govt of India, regulator as well as various government organisations who made this possible in the current scenario. The news has come at the right time when the market is under pressure and hereafter the possibility of larger FPI flows could be seen ahead of this inclusion. The Rupee would also benefit from this news. We continue to remain optimistic on a great Indian long term story. Equity markets would take this as a welcome note at the right time.”

Glenmark Pharmaceuticals stock tumbles by 4.83% on the NSE, trading at ₹787.70. The company’s board had approved to divest 75% stake in its subsidiary Glenmark Life Sciences to Nirma Ltd for ₹5,651.5 crore at ₹615 a share.

Wipro stock declines by 1.40% on the NSE, trading at ₹422.95. The company had announced the apointment of Aparna C Iyer as its CFO.

Major gainers on the NSE at 9:30 am:

SBI (1.56%); Bajaj Finserv (1.29%); Bajaj Finance (1.08%); IndusInd (1.01%); LT (0.80%)

Major losers: Sun Pharma (-1.25%); Cipla (-1.16%); Wipro (-1.15%); Divi’s Lab (-1.03%); Hindalco (-1.01%)

Crude oil futures traded higher on Friday morning following the Russian government’s decision to restrict exports of gasoline and diesel to stabilize fuel prices in its domestic market. At 9.14 am on Friday, November Brent oil futures were at $93.81, up by 0.55 per cent; and November crude oil futures on WTI (West Texas Intermediate) were at $90.27, up by 0.71 per cent. October crude oil futures were trading at ₹7489 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹7483, up by 0.08 per cent; and November futures were trading at ₹7401 as against the previous close of ₹7396, up by 0.07 per cent.

Karur Vysya Bank has announced the opening of two branches on September 25 at Atchutapuram and Palacode, Dharmapuri District.

The Indian stock market, represented by the Sensex and Nifty indices, opened flat to positive. This decline follows the global market’s struggle after the Federal Reserve’s hawkish stance. Analysts anticipate the downward pressure to persist, affecting mid and small-cap sectors that have shown relative resilience.

As of 9:15 am, the BSE Sensex, comprising 30 major stocks, declined by 7.31 points to reach 66,222.93. Simultaneously, the NSE Nifty gained 3.95 points, trading at 19,746.30.

Among the Sensex gainers were SBI, Kotak Bank, IndusInd Bank, Adani Enterprises and Bajaj Finserve. Conversely, Wipro, Apollo Hospitals, HCL Tech, Titan Divis Labs were among the lagging stocks.

Despite the short-term market challenges, India’s inclusion in the JPMorgan Government Bond Index is a positive development for the nation and its markets. JPMorgan recently announced its decision to add Indian securities to the JPMorgan Government Bond Index-Emerging Markets, effective from June 28, 2024, with India carrying a maximum weight of 10% on the index. Analysts at HSBC Global anticipate an inflow of approximately $30 billion into the country, which is expected to stabilize both the bond and equity markets.

However, the equity market may continue to face pressure in the near term, primarily due to Foreign Portfolio Investors (FPIs) selling off shares. FPIs unloaded shares worth over Rs 3,000 crore on Thursday. Market experts believe that this selling trend will persist as the US dollar gains strength, driven by robust economic activity in the United States and the recent decisions by the Federal Reserve.

22nd September: Karnataka Bank, Hindustan Foods, Swan Energy to consider Fund Raising

23rd September: M K Proteins to consider Stock Split; Shree Renuka Sugars, Zuari Agro Chemicals, SJVN to consider Fund Raising

25th September: Veerhealth Care to consider Bonus issue; Avance Technologies to consider Stock Split; Spandana Sphoorty Financial, Highways Infrastructure, Kalpataru Projects International to consider Fund Raising; Strides Pharma Science to consider Scheme of arrangement

26th September: Vinny Overseas to consider Fund Raising

27th September: Ritco Logistics, Can Fin Homes to consider Fund Raising

12th October: INFY, HCLTECH to consider Dividend

The Indian market is poised to open cautiously today following significant declines in the previous two sessions. The Nifty index experienced a substantial 1.79 percent drop, while the Bank Nifty index saw an even more pronounced decline of 3 percent over the course of the week. Market breadth was skewed on the negative side as some profit booking seen in Midcap and FIIs remained net sellers in the past few days.

Today’s Indian market direction hinges on global factors. Unchanged policy rates from the Federal Reserve and Bank of Japan, along with India’s JP Morgan Bond Index inclusion, will significantly impact investor sentiment and trading trends.

Technically Nifty support remains at 19650-19620 while resistance is placed at 19850-19880 zone.

Sectorally PSU and FMCG could remain in radar for the day.

Om Mehra

Equity Research Analyst

Choice Broking

Ex-date Dividend: NRB Bearing, Ahluwalia Contracts (India), SMS Pharmaceuticals, National Fertilisers, Savita Oil Technologies, KNR Constructions, Jindal Poly Films, Fertilisers, and Chemicals Travancore, DCW, Rico Auto Industries, Datamatics Global Services, Finolex Cables, HFCL, Aurionpro Solutions, Hindustan Copper, Gujarat Mineral Development Corporation, Bombay Burmah Trading Corporation, Kitex Garments, Gulshan Polyols, Goodluck India, GTPL Hathway, Vidhi Specialty Food Ingredients, Dixon Technologies (India), KDDL, PNC Infratech, Apollo Micro Systems, Hi-Tech Pipes, Premier Explosives, HPL Electric & Power, Lux Industries, Zota Health Care, Mishra Dhatu Nigam, Servotech Power Systems, D. P. Abhushan, Satia Industries, Titagarh Rail Systems, Confidence Petroleum India, Shivalik Rasayan, Gujarat Fluorochemicals, BCL Industries, Bajaj Healthcare, Mrs. Bectors Food Specialities.

Ex-Special Dividend: Datamatics Global Services

Ex-date AGM: NRB Bearing, Ahluwalia Contracts (India), PG Electroplast, Technocraft Industries (India), SMS Pharmaceuticals, Gallantt Ispat, D B Realty, Savita Oil Technologies, KNR Constructions, Jindal Poly Films, Fertilisers, and Chemicals Travancore, DCW, Rico Auto Industries, Datamatics Global Services, Jaiprakash Power Ventures, Mahanagar Telephone Nigam, HMT, Ashapura Minechem, HFCL, Aurionpro Solutions, Hindustan Copper, Gujarat Mineral Development Corporation, Bombay Burmah Trading Corporation, B. L. Kashyap and Sons, Kitex Garments, Visagar Polytex, Atul Auto, Gulshan Polyols, RattanIndia Power, Goodluck India, Arman Financial Services, Vidhi Specialty Food Ingredients, Dixon Technologies (India), India Tourism Development Corporation, JITF Infralogistics, KDDL, PNC Infratech, Apollo Micro Systems, Premier Explosives, HPL Electric & Power, Bombay Super Hybrid Seeds, Lux Industries, Steel Exchange India, Zota Health Care, Servotech Power Systems, M K Proteins, Shaily Engineering Plastics, Ganesh Benzoplast, Satia Industries, Titagarh Rail Systems, Confidence Petroleum India, Transindia Real Estate, Shivalik Rasayan, Abans Holdings, BCL Industries, Subex, Anupam Rasayan India, Bajaj Healthcare, Mrs. Bectors Food Specialities, Paras Defence and Space Technologies, RattanIndia Enterprises, Glenmark Life Sciences, Hardwyn India, Ethos, Stylam Industries.

Record-date Dividend: SMS Pharmaceuticals, National Fertilisers, KNR Constructions, Jindal Poly Films, Fertilisers and Chemicals Travancore, Finolex Cables, GTPL Hathway, Apollo Micro Systems, Hi-Tech Pipes, Mishra Dhatu Nigam, DP Abhushan, Gujarat Fluorochemicals, Mrs. Bectors Food Specialities

Record date AGM: Jindal Poly Films

Moved into Short-Term ASM Framework: AGI Greenpac

IndusInd Bank: Promoter IndusInd revoked a pledge of 21.4 lakh shares on Sept. 20, and promoter IndusInd International Holdings created a pledge of 21.4 lakh shares on Sept. 20.

Chambal Fertilisers & Chemicals: Promoter Zuari Industries created a pledge of 46.5 lakh shares on Sept. 15.

Bajaj Healthcare: Promoter Sajankumar Rameshwarlal Baja bought 56,000 shares on Sept. 21.

Som Distilleries & Breweries: Promoter Jagdish Kumar Arora bought 10,000 shares on Sept. 20.

GATI: Promoter TCI Finance sold 11,000 shares on Sept. 18.

ADF Foods: Promoter Krish Bhavesh Thakkar sold 12,003 shares between Sept. 18 and 20.

Electronics Mart India: Pavan Kumar Bajaj sold 96.18 lakh shares (2.49%) at Rs 143.03 apiece, while Motilal Oswal Mutual Fund bought 60.40 lakh shares (1.56%) at Rs 143 apiece.

EMS: Aalidhra Textool Engineers bought 3 lakh shares (0.54%) at Rs 282.64 apiece, Sanatan Financial Advisory Services bought 3.10 lakh shares (0.55%) at Rs 278.89 apiece, and BOFA Securities Europe SA bought 2.88 lakh shares (0.51%) at Rs 283.79 apiece.

Praveg: Asha Vishnubhai Patel sold 2.22 lakh shares (0.98%) at Rs 530.05 apiece.

JM Financial: Aruna N Kampani sold 15 lakh shares (0.15%), while JM Financial and Investment Consultancy Services bought 15 lakh shares (0.15%) at Rs 85 apiece.

A big long term positive in the domestic market after the news that the JPMorgan Chase & Co. will add Indian government bonds to its benchmark emerging-market index, a keenly awaited event that could drive billions of foreign inflows to the nation’s debt market, starting from June 28 2024. The South Asian nation will have a maximum weight of 10% on the index, according to a statement Thursday. The inclusion may also prompt flows of as much as $30 billion, according to HSBC Holdings Plc - Expects positive for PSU Banks

• BALRAMCHIN

• BHEL

• DELTACORP

• HINDCOPPER

• IBULHSGFIN

• MANAPPURAM

• PNB

• ZEEL

India’s inclusion in bond index is a step in the right direction. With exclusion of Russia and troubles in China, the options for global debt investors have narrowed down. Hopefully rating agencies will respect investors view point and give up on their moody and poor standards. This inclusion will deepen bond market in India.

Mihir Vora, CIO, Max Life

On his twitter handle

Good news : India to be included in JP Morgan’s global bond index starting June 2024

While global equity flows have been healthy and consistent, flows to our debt markets have been lower compared to equities

Inclusion of India in one of the widely-followed bond indices will attract healthy FII flows to debt markets. This can help in keeping interest rates lower and currency stability

Glenmark Pharma (GNP) has proposed to divest its API business, Glenmark Lifescience (GLS) with the aim of reducing debt and increasing its emphasis on branded/innovative products.

This is the third transaction by GNP with a cumulative cash generation of INR62.5b over the past 12-15M.

After the stake sale, GNP is set to transition from a net debt position of INR29.5b to a cash surplus INR21b.

The net reduction in overall EBITDA due to the sale of API business (INR5.5b) would be partially offset by a reduction in interest (INR4.2b).

Expecting significant deleveraging and superior execution in both the domestic formulation (DF) and EU/ROW markets, we anticipate an improved outlook for GNP over the next 2-3 years, which should positively impact return ratios to some extent. We value GNP at 14x 12M forward earnings to arrive at a price target of INR780. We maintain our Neutral rating, given that the current valuation adequately captures potential earnings upside/better return ratios.

Deepak Shenoy, Founder & CEO, CapitalMind on India’s inclusion in Bond index on his microblog site X

Huge! This means by 2025 we should see holdings of 20 billion by international index funds, which is 160,000 cr. That would roughly be 10% of the total issuance of the 21 bonds (if all are added equally)

Of course still tiny for India and less than 3% of our central govt debt. But note that this debt is in rupees: the USD INR risk is on the buyer not the govt

Good first move. It will take years to materialize. We should of course recognise that geopolitics may influence economic changes, as we’ve seen in the Russian oil scene in the past when they put this kind of carrot in front of us. Expect this not to eventually happen and if it does, it’s a nice bonus.

MS on Indigo: Maintain Overweight, target price at Rs 3217

UBS on Indusind Bank: Maintain Buy, target price at Rs 1800

MS on Maruti: Maintain Overweight, target price at Rs 11963

Citi on Maruti: Maintain Buy; target price at Rs 13600

GS on HDFC Bank: Maintain Buy, target price at Rs 2042

Macquarie on United Spirits: Maintain Underperform; target price at Rs 760

Omkarm Capital has launched Alternative Investment Fund (AIF) targeting INR 300cr including green shoe option. The Fund will focus on infrastructure logistics space and has received significant interest from investors across family offices, ultra-high-net investors and institutional investors.

The Fund is a Category II AIF under SEBI AIF Regulations. Omkarm sees Indian infrastructure logistics as one of the areas that will drive the country forward as well as deliver high quality returns, thereby aligning with the investment manager’s core value of delivering Purpose backed Returns.

HDFC Securities on Tiles: Muted domestic demand; strong exports

We met the management of Orient Bell (OBL). The management highlighted that domestic demand remains muted in Q2 (similar to Q1); however, it expects things to firm up, going ahead, led by robust real estate demand. Exports from Morbi continue to firm up. As many plants have already shut down last year and as exports continue to firm up in Q2FY24, Morbi has not resorted to any shutdown (as it had in the previous years). Tile prices fell MoM in July but have remained stable thereafter. LNG prices bottomed out in June/July and have rebounded a bit in August (still down YoY and QoQ). OBL has an ambitious plan to become one of the top three tile manufacturers in India. It plans to double its marketing spending even at the expense of lower EBITDA margins in the medium term. Its clear focus is on gaining market share and maintaining a healthy balance sheet (net debt will peak at INR 0.5bn). It is adding 3.3MSM GVT capacity in Dora, Gujarat (expected by September-23 end). This plant will increase its GVT mix (higher margin business).

We expect domestic demand to improve from H2FY24 onwards. We also expect the tile export momentum to sustain, which will further help the industry to pass on the cost inflation, leading to margin expansion YoY in FY24E. We maintain our BUY rating on Somany Ceramics (TP of INR 780/sh: 12x FY25E EV/EBITDA, implying 23x FY25PE) and ADD rating on Kajaria Ceramics (TP of INR 1,310/sh: 21x FY25E EV/EBITDA implying 33x FY25 PE).

Makarand M Joshi, Founder MMJC & Associates - A corporate compliance firm on SEBI approving relaxation in the framework for large corporates for meeting incremental finance needs through issuance of debt securities

Quote

“SEBI is spearheading GOI drive of giving push for fund raise via listed debt. It is a subject of national priority.

Though details are yet not released, it seems SEBI has done its bit to listen to corporates and relax some requirements. Now it is a turn of Finmin to come out with more initiatives to incentivise debt securities listing for these large corporates.

One major concern of corporates was to incentives them for doing corporate debt listing as there is cost arbitrage between normal banking channel borrowing and debt listing. Real incentivisation can happen only through FINMIN and GOI.”

The BSE in a circular said that is discontinuing Stop Loss orders with market condition for Prevention of Erroneous Orders.

As a measure to prevent erroneous order placement, Stop Loss orders with Market condition (SL-M) in Equity segment, Equity Derivatives segment, Currency Derivatives segment and Commodity Derivatives segment shall be discontinued by the Exchange with effect from October 9, 2023.

Commenting on BSE to discontinue Stop Loss orders with Market condition (SL-M), Shrey Jain, founder and CEO, SAS Online – a deep discount brokerage platform,said,

“It’s a step in the right direction basically to avoid instances of wild swings in options premium due to freak trades. Earlier this month Sensex 67000 call options witnessed such swings where due to a market order the premium trading at Rs 4-5 went upto Rs 209 for a few seconds. Lot of traders complained that they faced losses due to this.”

According to Nirmal Bang Instituitional Equities, mobility indicators are slow but could be a blip than a trend.

Ø Economic indicators moderated from the previous fortnight, led by traffic indicators. This may be attributed to a pick-up in monsoon rains in early Sept’23 and G-20 related mobility restrictions in Delhi – NCR.

Ø UPI payments and use of credit cards for E-commerce transactions picked up from the previous fortnight.

Ø All-India cumulative rainfall was 7% below normal as of 21st Sept, 2023, with East & North East India facing a deficit of 21% and South India 11%. As of 15th Sept, 2023, Kharif sowing was up by 0.3% YoY, with Rice sowing up by 2.7% YoY.

Ø E-commerce players and their supply-chain partners are bracing for 18-20% YoY growth this festive season while hiring trends seem strong.

As per Scheme of Arrangement (Demerger) sanctioned by the Hon’ble National Company Law Tribunal, Mumbai Bench, inter alia, between, National Peroxide Ltd, (Demerged Company) and NPL Chemicals Ltd (Resulting Company) and Their Respective Shareholders and Creditors One Fully Paid-Up Equity Share of Rs.10 each of NPL Chemicals Limited shall be issued and alloted for each held in National Peroxide Ltd.”

Shares of Zaggle Prepaid Ocean Services will be listed at the exchanges today. The company has fixed the price at Rs 164, at the upper end of the price band of Rs 156-164.

The SaaS-based fintech platform raised Rs 563.38 crore through the public issue.

Company fixes price at ₹126

Shares of Samhi Hotels will be listed at the bourses today. The company, which raised ₹1,370.10 crore through the IPO, has fixed the price at ₹126, at the upper end of IPO price band ₹119-126.

The ₹1,201-crore initial public offering of Sai Silks (Kalamandir) will close today for public subscription. The issue so far was subscribed just 33 per cent. The IPO received bids for 1.27 crore shares against about 3.85 crore shares on offer. The price range for the offer is ₹210-222 a share. Investors can bid for a minimum of 67 equity shares.

Issue comes at a price band of ₹366-385

Today is the last day to subscribe the public offer of Signatureglobal. The ₹730-crore initial public offering of realty firm was subscribed 1.61 times at the end of second day of bidding on Thursday. The price band for the offer has been fixed at ₹366-385. The minimum lot size for an application is 38 Shares.

ideaForge Technology has received order worth about ₹58 crore (exclusive of GST) to supply 400 Surveillance Copter with accessories to Strategic Marketing

In a significant move to address the acute affordable and mid-income housing shortage in India, IFC and Sunteck Realty are partnering to create a joint platform with a total investment of up to ₹750 crore (US$90 million) to promote the development of nearly 12,000 high-quality housing units across four to six green housing projects within the Mumbai Metropolitan Region (MMR). IFC’s proposed investment is for up to ₹330 crore ($40 million), with the remainder to be brought in by Sunteck Realty.

Tamilnad Mercantile Bank Limited has clarified in reference to the information / news published in mainstream media regarding wrong credit to beneficiary accounts in NACH transaction. The NACH credit file received from NPCI had some invalid account numbers, in some cases, the account numbers were of 16 digits, instead of correct 15 digits. When the file was processed in NACH application, the amount field got prefixed with one digit (9) and the file was uploaded in CBS. The mistake was noticed immediately and the entries were reversed. We have now introduced additional checks for authorizing the NACH credit transactions.

Life Insurance Corporation of India’s shareholding in Gujarat Gas has increased from 4.981 per cent to 5.012 per cent of the paid-up capital of the said Company. GGL caters to its customers by providing CNG and PNG connections in domestic, Industrial, Commercial and Non commercial segments in the areas of South & Central Gujarat and Saurashtra. In a separate notice, LIC said it has reduced its stake in Oil India Ltd from 11.727 per cent to 9.689 per cnet of the paid-up capital of the said Company.

Interglobe Aviation (IndiGo) and British Airways have signed a codeshare agreement to further boost connections between India and the UK. Through this partnership - which sees British Airways add its code onto a couple of destinations across IndiGo’s network - customers can enjoy improved connectivity between India and the United Kingdom for travel from October 12.

India Cements Ltd has entered into an agreement with UltraTech Cement Limited for the sale of land admeasuring 73.75 acres (which includes land admeasuring 14.53 acres to be procured) located at villages Kantakapalle and Chinnipalem, Mandal Kothavalasa, District Vizianagram, Andhra Pradesh, for a consideration of ₹70 crore, exclusive of taxes, stamp duty and registration charges. This is part of the Company’s plan to monetize some of its non-core assets for improving its liquidity and to meet few of its capital expenditure plans.

In a long awaited move, JP Morgan has announced the inclusion of India bonds into its Global Diversified EM Bond Index. This is expected to open up a large new market for India govt bonds and is bullish for G-secs and the Rupee. This will take effect from June 2024

Institutional investors on Thursday oversubscribed the SJVN offer-for-sale (OFS), putting in bids worth over Rs 1,450 crore. The government’s 4.92 per cent share-sale offer in state-owned power producer SJVN was oversubscribed on Thursday with institutional investors bidding for over 20.91 crore shares against 8.70 crore shares reserved for them. As per stock exchange data, non-institutional investors subscribed the SJVN issue by over two times. At the indicative price of Rs 69.64 per share, the bids are cumulatively worth over Rs 1,450 crore. Retail investors can subscribe today.

IEL Ltd

Stock Split From Rs.10/- to Rs.1/-

Previous day Closing Price – Rs. 149.10

Ex - Stock Split 25 September 2023 (Monday)

Last day trade for before split Today

Bharat Parenterals Ltd

Dividend Per Share Rs.0.75

Previous day Closing Price – Rs. 542

Ex-Dividend 25 September 2023 (Monday)

Last date for Cum-Dividend Today

Bank of England keeps its policy rate unchanged at 5.25%, resisting market expectations for a 25 bps hike during the September policy meeting

Buzzing Stocks: Glenmark Pharma, Wipro, ICICI Bank, Vedanta, India Cements, Indigo, Gujarat Gas, Oil India, NBCC India, Sunteck Realty, TMB, ideaForge, SPEL Semiconductor, Seamec, DLF, Adani Enterprises, SJVN

Bears are likely to tighten their grip further, as global markets continue to reel under pressure post Fed’s hawkish stand. Analysts expect the downward pressure is likely to continue and will extend to mid -and small-cap space too, which until now is relatively resilient. Gift Nifty at 19660 indicates a gap down opening of about 100 point for Nifty, as Nifty futures closed at 19,779 on the NSE.

Cottonseed oilcake (COCUDAKL) futures have been displaying a wide trading range between ₹2,280 and ₹2,830 since May of the previous year. Although there was a brief surge above ₹2,830 in early 2023, this upward movement was short-lived, with the contract soon retreating below this level. Read more

The NCDs are proposed to be listed on BSE. The allotment will be on first come a first-come, first-served basis.

IT major Wipro’s Chief Financial Officer (CFO) Jatin Pravinchandra Dalal has resigned from his post, according to an exchange filing. The company is appointing Aparna C Iyer as CFO, effective immediately. The stock lost 2.44% to trade at Rs 418.50 on NSE. Read more.

India’s power plants imported more thermal coal on a monthly basis in August 2023 in anticipation of the shortage in supply of the critical commodity from domestic sources, particularly as the supply deficit is expected to stand at around 7 million tonnes (mt) in H2 FY24.

India is close to finalising five lithium blocks in Argentina and is likely to sign an agreement “over the next few days”. Agreements are to be signed through KABIL, the State-owned joint venture formed to scout for minerals overseas.

An official in the Mines Ministry, with direct knowledge of the matter, told businessline that groundwork has been carried out and things are in the final stages now.

We recently met the management of Godfrey Phillips (GP). Management opined, given lower rural demand cigarette consumption in recent months saw some pressure driving way for rising competitive intensity (trade discounting). GP’s focus on RSFT segment coupled with solid growth in Marlboro franchise helped the company to maintain momentum. Further seizures from regulatory authorities, curtail the impact of illicit and counterfeits.

IIFL Finance is a non-banking financial company (NBFC) with assets under management (AUM) of $8.3 billion as of Q1-FY24.

The company has a wide branch network across most states. After experiencing high levels of disruption from a series of industry and national crises in recent years – demonetisation (2016), the bankruptcy of IL&FS in 2018 which rattled the financial system and squeezed liquidity, and Covid-19 (2020-21) – IIFL has strengthened its business by making four strategic pivots - Improved liability management; Stronger risk management; Aggressive investments in distribution, technology, and partnerships to drive growth; and co-lending model, which sells down a proportion of loans to banks

India Cements is accelerating its efforts to reduce production costs via the modernisation of its factories and improve liquidity through the sale of some portion of its lands.

The water storage level in key reservoirs in South India continue to be a cause for concern even as the levels in major 150 ones across the country are below the average level of the last 10 years.

This industry is presently growing at a 12% CAGR and seen to play a major role in India’s economic growth

Come festive season and the ad rush begins on most media. Digital streaming platforms too are witnessing a festive spike as brands have started booking ad slots but this year rates are reportedly lower.

Glenmark Pharmaceuticals has agreed to divest 75 per cent stake in Glenmark Life Sciences (GLS) to Nirma Limited for a consideration of ₹5,651 crore (at ₹615 per share).

The transaction will help strengthen Glenmark Pharma’s balance sheet, as it extinguishes the debt, said Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals. The gross debt is about ₹4,500 crore.

The RBI has introduced norms on the Basel III capital framework, fund raising, exposure guidelines, and norms on classification and valuation of investment portfolios for All India Financial Institutions (AIFIs), which will come into effect from April 2024.

India has five AIFIs regulated by the central bank, namely the Export-Import Bank of India (EXIM Bank), the National Bank for Agriculture and Rural Development (Nabard), the National Bank for Financing Infrastructure and Development (NaBFID), the National Housing Bank (NHB), and the Small Industries Development Bank of India (SIDBI).

Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys and Nigeria’s Guaranty Trust Bank (GTBank), the banking subsidiary of Guaranty Trust Holding Company, announced that Guaranty Trust Bank has selected the Finacle Digital Banking Suite for its multi-country digital transformation program.

The Securities and Exchange Board of India (SEBI) has provided for a number of relaxations to large corporates (LCs) for meeting their financing needs from the debt market.

The regulator had mandated LCs to meet 25 per cent of their financing needs from the debt market, with an aim of deepening the corporate bond market in India. The move would also aid investors such as insurers, pension and provident funds which are required to invest a particular percentage of their incremental receipts in corporate bonds and could be hurt by lack of supply of issuances.

Day Trading Guide gives you the key intraday supports and resistances to watch out for on the Nifty Futures and other widely traded stocks such as Reliance Industries, Infosys, HDFC Bank, TCS, SBI. Based on the trend, it also gives intraday trade recommendations with specific entry as well as stop-loss levels. The mentioned resistances and supports will be the exit levels.

Hindustan Petroleum Corporation Limited (HPCL) stock is getting ready for a fresh rally in the coming days. The stock has been consolidating and forming a strong base above ₹250 since the beginning of this month. The 200-Day Moving Average (MA) at ₹252 has been strong support all through this consolidation phase. Read more

JPMorgan on Friday said it will include India in its widely tracked emerging market debt index, setting the stage for billions of dollars of inflows into the world’s fifth-largest economy.

India’s local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, benchmarked by about $236 billion in global funds according to JPMorgan.... Read more

In the opening trade, Asian equity benchmarks saw a decline. Japanese stocks, in particular, started Friday on a lower note, influenced by the recent drops on Wall Street and with investors eagerly awaiting the conclusion of the Bank of Japan’s policy meeting. On Thursday, stocks across Asia experienced declines, while the U.S. dollar strengthened, following the Federal Reserve’s indication of prolonged higher interest rates.

The benchmark Nikkei 225 index experienced a 0.98% decline, equivalent to 319.82 points, settling at 32,249.21 during early trading. Meanwhile, the broader Topix index dropped 0.81%, or 19.37 points, reaching 2,364.59. The Korea Composite Stock Price Index (KOSPI) displayed weakness, falling by 0.82% or 20.33 points to 2,494.23. Australia’s S&P/ASX 100 also recorded a decline of 1.13%, equivalent to 67.2 points, bringing it to 5,868.8.

On Thursday, Wall Street experienced a significant decline in a widespread sell-off due to concerns that the Federal Reserve might maintain its stringent monetary policies for an extended period.

All three major U.S. stock indices plummeted by over 1%, and the 10-year U.S. Treasury yields reached a 16-year high. This came after Fed Chairman Jerome Powell cautioned that inflation still has a considerable distance to cover before reaching the central bank’s 2% target.

Specifically, the Dow Jones Industrial Average dropped by 370.46 points (1.08%) to 34,070.42, the S&P 500 shed 72.2 points (1.64%) to 4,330, and the Nasdaq Composite declined by 245.14 points (1.82%) to 13,223.99.