Wall Street closed lower on Friday and the trend continued on Monday morning with Asian markets opening lower. Traders will keep an eye on a number of economic reports this week including US initial jobless claims and GDP data along with PMI figures from China.
Vedanta’s proposal to transfer ₹12,587 crore from reserves gets proxy advisory firm’s backing
Metals and oil conglomerate Vedanta Ltd’s proposal to reorganise capital and transfer ₹12,587 crore from general reserves to retained earnings has won the backing of US-based proxy advisory firm Glass Lewis.
Vedanta has convened a meeting of shareholders of the company on October 11 for approval of a scheme of arrangement.
In a notice to shareholders, Vedanta reasoned that the firm had over the years “built up significant reserves through transfer of profits”.
“The company is of the view that the funds represented by the general reserves are in excess of the company’s anticipated operational and business needs in the foreseeable future, thus, these excess funds can be utilised to create further shareholders’ value,” it said. (PTI)
Auto index remains under pressure as it sheds 2% in early trading; all stocks in red
Suzlon Energy stock in focus as board approves right issues at 45% discount
Suzlon Energy shares will be under scanner when the stock market opens today as the company board has given its approval to raise ₹1200 crore funds through right issues of company shares. As per the latest exchange filing by the company, the board of directors of the company has given its approval to issue 240 crore equity shares at ₹5 per share price. Suzlon Energy share price had closed at ₹9.15 on NSE on Friday’s session, which means the right issue of shares are offered at around a 45 per cent discount. (Read More)
Sterling collapses as investors fly into dollars
Sterling slumped to a record low on Monday, prompting speculation of an emergency response from the Bank of England, as confidence evaporated in Britain’s plan to borrow its way out of trouble, with spooked investors piling in to U.S. dollars.
Broadening worry that high interest rates will hurt growth hit Asia’s currencies and equities too, with exporters from Japanese carmakers to Australian miners hit hard.
The pound plunged nearly 5% at one point to $1.0327, breaking below 1985 lows. Moves were exacerbated by thinner liquidity in the Asia session, but even after stumbling back to $1.05 the currency is still down some 7% in just two sessions.
“You’ve got to buy the dollar as a risk off-trade. There is nowhere else to go,” said Rabobank strategist Michael Every in Singapore. (Reuters)
Indices are off to a rough start as Sensex and Nifty sink 700 and 200 points, respectively.
Almost all stocks are in red with IndusInd and Powergrid dropping around 3% each
Subsidies frozen for erring EV makers
The department of heavy industries has found that certain electric vehicle (EV) original equipment manufacturers (OEMs) have violated the government’s phased manufacturing plan (PMP), a critical eligibility criteria against which it disburses incentives under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, said the secretary of the department Arun Goel.
The department is now implementing a system to introduce traceability in the way manufacturers share records of the domestic value addition (DVA) in their products with the government, Goel said. (Full Story)
Reliance Securities Stock in Focus for today: Voltas
STOCK IN FOCUS
Voltas (CMP Rs.901)
Considering the decent earnings growth, higher volume, and improved business visibility over the medium-term, we have our BUY rating on the stock, with a Target Price of Rs1,110.
Intraday Picks
CUMMINSIND (PREVIOUS CLOSE: 1219) SELL
For today’s trade, short position can be initiated in the range of ₹1225-1235 for the target of Rs.1190 with a strict stop loss of ₹1252.
ESCORTS (PREVIOUS CLOSE: 2077) SELL
For today’s trade, short position can be initiated in the range of ₹2085-2100 for the target of Rs. 2060 with a strict stop loss of ₹2120.
GLENMARK (PREVIOUS CLOSE: 385) BUY
For today’s trade, long position can be initiated in the range of ₹380- 382 for the target of Rs.394 with a strict stop loss of ₹377.
Sensex sinks at preopen and goes below 57,500 at preopen on Monday
Harsha Engineers International will make its debut on the bourses today.
Oil’s retreat deepens as dollar’s surge looms over commodities
Oil fell again as the dollar’s surge to a fresh peak and mounting recessionary concerns threatened global demand, deepening a rout.
West Texas Intermediate sank toward $78 a barrel as a Bloomberg gauge of the US currency rallied to an all-time high. The US benchmark crude collapsed more than 7% last week to end at the lowest close since mid-January. The decline was its fourth straight weekly drop, the longest losing run this year.
Crude is on track for its first quarterly slump in more than two years as central banks including the Federal Reserve raise interest rates aggressively, hurting the outlook for energy demand and sapping investors’ appetite for risk. The Fed’s tightening has helped to drive the US dollar to a record, making commodities priced in the currency more expensive for overseas buyers. (Bloomberg)
Mauritius-based FII invests in small-cap company. Share hits upper circuit
Positional investors who follow FII DII data and scan their latest buying and selling patterns, there is a piece of stock market news for them. Mauritius-based foreign portfolio investor (FPI) Vikasa India Eif 1 Fund has bought a stake in a small-cap company listed on BSE. As per the BSE bulk deal data available on the BSE website, Vikasa India Eif 1 Fund — Incube Global Opportunities has bought 51,000 shares of BSE-listed small-cap company SM Gold. They bought these shares in a bulk deal executed on 23rd September paying ₹40.15 per share. This means the foreign institutional investor (FII) has invested ₹20,47,650 in the small-cap company that ended with a market cap of ₹40 crore on Friday. (Read More)
Stocks to Watch: Harsha Engineers, Kotak, Reliance, ONGC, Coal India, Nestle India, Vodafone Idea, BPCL, ONGC, Reliance Capital
Ambuja Cements, Delta Corp, Vodafone Idea, Zee Entertainment, Can Fin Homes, and Punjab National Bank will be under the F&O ban list for Monday. These stocks will be under the ban for the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
Geojit Financial Services on today’s market: Buy-on-dips strategy which worked since the June lows need not work now
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: “The global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73 % is likely to aggravate FPI outflows which have been gathering momentum during the last 3 days. The probability of a global recession is also increasing since the Fed continues to be ultra hawkish. The 5% cut in MSCI World Index last week indicates the bearish undertone of global equity markets. In this scenario, the buy-on-dips strategy which worked since the June lows need not work now. Investors have to be cautious and remain vigilant.
However, India will outperform both in economic growth and market performance. Therefore, selective buying can be done in domestic economy-facing segments like financials, autos, capital goods and select FMCG on sharp market declines.”
Nifty could test key support of 17,166 at open
The Nifty could test its support of 17,166 at the opening, derivatives trade on SGX Nifty indicates Monday morning.
The SGX Nifty, which derives its value from the Nifty, traded down 17,179 points Monday morning, while the Nifty closed at 17,327 on Friday. The price data signals a gap down of around a per cent from the weekend close. (Read More)
INDIA BONDS-Bond yields seen higher, tracking relentless rise in U.S. peers
Indian government bond yields are expected to rise in early trading on Monday, tracking an unabating spike in U.S. yields, as investors fear that central banks globally will keep tightening monetary policy to tackle soaring inflation.
The benchmark Indian 10-year government bond yield is…
Read More: Stock Market LIVE: Sensex sheds 600 pts, Nifty 200; Auto, Bank, Realty lag