Powell in his address last week at the Fed’s Jackson Hole symposium flagged the likely need for restrictive monetary policy for some time to curb high inflation and cautioned against loosening monetary conditions prematurely. Wall Street reacted sharply and sank on Friday. Asian stocks also opened lower on Monday.
Hindustan Unilever gains 1% and shines in a day where most stocks lost value
Axis Securities pick of the week: Amber Enterprises India – Recommendations: Buy at TP ₹2,504
Outlook & Valuation: Amber’s revenues witnessed strong overall growth despite challenges posed by prevailing inflation. The RAC industry witnessed strong demand during the quarter despite price hikes. Furthermore, the industry is expected to grow 28-30% in volume terms and Amber is confident it to outpace the industry growth in FY23. Increasing product offerings, customer additions foray into the Commercial AC space, and entry into exports will drive the company’s long-term growth.
Recommendation: We recommend a BUY on the stock with a target price of ₹2,504/share, implying an upside of 10% from CMP.
Gold prices in India today fall to lowest in over a month, silver rates tumble
Gold and silver fell sharply in India today after Fed chairman last week indicated high interest rates will continue for some time to curb inflation. On MCX, gold futures fell to one-month low when they dived 0.5% to ₹50,970 per 10 gram. Silver futures tumbled 1.3$ to ₹54063 per kg. On Friday, the yellow metal had tumbled nearly ₹500 in tandem with a fall in international rates. (Read More)
Bank of Baroda to issue perpetual bonds -traders
India’s Bank of Baroda plans to raise at least 5 billion rupees ($62.52 million) through sale of Basel III compliant additional Tier I perpetual bonds, three merchant bankers said on Monday.
The state-run lender has invited coupon and commitment bids from bankers and investors on Tuesday, they said.
The bonds are rated AA by ICRA and India Ratings.
The issue will close for subscription later this week. (Reuters)
₹3 to ₹2535: Tata stock turns ₹1 lakh to ₹169 crore in 20 years
A long term stock investor not just gains from the rise in the share price of its portfolio stock. There are various other means of income for a shareholders that helps its money grow even when the stock is not ascending. Announcement of interim dividend, bonus shares and buyback of shares, etc., are such additional means that help a long term stock investors money to grow. However, if the stock grows along with these means, then it becomes an icing on the cake for a stock investors. Titan Company shares are one such stock that has given stellar return to its shareholders and at the same time it has announced bonus shares and stock split as well. Titan shares are one of the multibagger stocks that Indian stock market has delivered in last few years. (Full Story)
Ashika Stock Broking, Univest and Angel One views on Technical and Derivates: Negative outlook persists
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed an indecisive doji after a small fall hence one can expect rangebound moves ahead with high volatility. Nifty in the weekly time frame has breached the previous week’s which is the first sign of exhaustion. At present juncture, one need to avoid trading aggressively amid global nervousness. US Fed Chairman Jerome Powell reiterated hawkish stance on interest rate hike denting nascent hopes for a more modest path of policy tightening. Thus, it would be sensible if one avoid fresh longs in index and book profits in trading bets. Considering the present situation, a bare minimum correction of 38.6% of the entire rally from 15,183 to 17,992 comes around 16900 followed by 50% correction at 16600. On the upside Nifty need to sustain above 17,350 with some authority for the bulls to strengthen their stance.
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Similar to the previous session, the Nifty started on a positive note on Friday, however, there was a lack of follow-up buying at higher levels, and the Nifty gradually came lower to erase a significant part of the opening gains. Nifty eventually ended with gains of 0.21% at 17559.
The Nifty has now closed precisely around the mid-point of the close trading range of 17750 – 17350 and since markets have lost their sheen, it would be difficult to predict the immediate path of action amid some global nervousness. In our sense, one should avoid trading aggressively within the range and till the time, we remain above 17350, there is no reason to worry for. Only a breakdown below this sacrosanct support would extend the corrective phase towards the major support zone of 17100 – 17000. Before 17350, we can see immediate support around 17450. On the flip side, 17700 – 17750 are the levels to watch out for. If bulls have to strengthen their stance, the Nifty needs to surpass the higher boundary with some authority. Till then it’s better to take one step at a time and ideally, the positioning must be on a lighter side.
SGX Nifty is indicating a big gap down opening, and it would be crucial to see how markets react around the key supports post such a big gap down. In our sense, volatility is likely to remain on the higher side; hence, one should avoid aggressive bets to avoid undue risk.
Pranit Arora, Co founder & CEO of Univest: Fed chair foreshadowed further interest rate increase to fight rising inflation and has raised concerns regarding recession. Higher interest rate will lead to lower liquidity and global markets have taken this sentiment negatively. US indices were 3-4% down and Asian markets are also down by ~2%. So, we maintain a negative outlook on markets today!
Tech Mahindra down more than 5% in early trading
Oil climbs on OPEC supply cut prospect, demand growth
Oil prices rose 1% on Monday, as expectations OPEC will cut output if needed to support prices, conflict in Libya, and rising demand amid soaring natural gas prices in Europe helped offset a dire outlook for growth in the United States.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.09, or 1.2%, to $94.15 a barrel at 0241 GMT, adding to a 2.5% gain last week.
Brent crude futures rose 89 cents, or 0.9%, to $101.88 a barrel, extending a 4.4% gain last week. (Reuters)
Rupee dives to record low against US dollar today
Indian rupee fell sharply today after the US Fed chief indicated high interest rates will continue for some time to curb inflation. The rupee fell to record low of 80.11 vs USD, compared with the previous session’s close of 79.87. On Friday, Federal Reserve Chair Jerome Powell at the Jackson Hole meet of central bankers signalled that restrictive policy would be kept longer to bring down inflation. (Read More)
IT index plunges; slips more than 4% in early trading. All stocks deep in red
Bitcoin falls below $20,000, ether, dogecoin, other crypto prices today also plunge; Litecoin surges
Cryptocurrency prices today plunged with Bitcoin extending its drop below $20,000 amid concern about the Federal Reserve’s rate-hike path. The world’s largest and most popular cryptocurrency was trading more than a per cent lower at $19,848. The global crypto market cap today fell below the $1 trillion mark, as it was down over 2% in the last 24 hours at $994 billion, as per CoinGecko. (Full Story)
Indices lost 2% at open with Sensex below 58,000 points and Nifty hovering around 17,200.
NDTV promoters seek regulatory clarification on VCPL deal
New Delhi Television said early Monday that its promoter group has written to India market regulator asking it to clarify whether the regulator’s order in 2020 restricts conversion of warrants issued to Vishvapradhan Commercial Pvt Ltd (VCPL) into equity shares.
Indian billionaire Gautam Adani’s conglomerate last week said it was seeking to control a majority stake in NDTV. (Reuters)
Sensex is down almost 3% at preopen; Reliance, NTPC, IRCTC, Vodafone Idea in focus
Reliance Securities Stock in Focus: Supreme Industries
STOCK IN FOCUS
Supreme Industries…
Read More: Stock Market LIVE: Nifty tanks 250 pts, Sensex around 58k; Rupee below 80/dollar