Share Market Highlights 26 Sep 2023: Sensex declines 78 pts on profit taking in IT, banking shares; Nifty ends flat

The Indian rupee fell on Tuesday because of month-end dollar demand, and as US Treasury yields gained on renewed bets that interest rates in the US will be kept higher for longer.

The rupee ended at 83.23 against the US dollar compared with 83.1450 in the previous session. Read more.

Plaza Wires Limited’s Initial Public Offering (IPO) to open on Friday, September 29, 2023. The company has set the price band at ₹51 -₹54 per equity share bearing face value of ₹10 each.

Bid/Offer Opening Date– Friday, September 29, 2023

Bid/Offer Closing Date – Wednesday, October 4, 2023

Lot size: Minimum bid lot is is 277 equity Shares and in multiples of 277 equity shares thereafter.

The floor price is 5.1 times the face value of the equity share and the cap price is 5.4 times the face value of the equity share.

The stock was up by 1.40% on the NSE, stood at ₹332.65.

Infosys is collaborating with Microsoft to jointly develop industry leading solutions that leverage Infosys Topaz, Azure OpenAI Service and Azure Cognitive Services.

Infosys stock declined by 0.93% on the NSE, at ₹1,460.50.

Shivkumar Pandey, Chief Information Security Officer of BSE, has tendered his resignation in order to pursue another opportunity, the bourse informed on Tuesday. The resignation will be effective from December 4, 2023.

Nayan Mehta, Chief of Special Projects at the exchange has tendered his resignation due to personal and health reasons. The resignation will be effective from October 12.

Easy Trip Planners Ltd’s EaseMyTrip has partnered with DuDigital Global Limited to restructure their visa and passport services, offering streamlined processes and heightened security.

DuDigital has earned recognition for providing administrative services to governments worldwide. However, the shares closed 0.86 lower at ₹41.45 on the BSE.

Benchmark Sensex closed lower by 78 points in a listless trade on Tuesday due to select profit taking in IT and banking shares in line with weak Asian markets and continuous foreign fund outflows.

The 30-share BSE Sensex fell 78.22 points or 0.12 per cent to settle at 65,945.47 with 14 of its components closing lower and 16 advancing. During the day, it declined 158.06 points or 0.23 per cent to a low of 65,865.63.

The broader Nifty dipped 9.85 points or 0.05 per cent to end at 19,664.70.

Among Sensex shares, Tech Mahindra, Infosys, Asian Paints, ICICI Bank, Kotak Mahindra Bank, Titan, IndusInd Bank and Bajaj Finserv were the major laggards.

Nestle, Tata Steel, Mahindra & Mahindra, Bajaj Finance, HDFC Bank and Tata Consultancy Services were among the gainers. Read more.

Shreyas Shipping and Logistics stock jumped 19.99% on the NSE, at ₹421.40. The company received approvals from BSE and NSE E for seeking reclassification of Promoter Shareholders, Mahesh Sivaswamy, Mala Mahesh Iyer, Mithila V. Mahesh and Murli S. Mahesh from “Promoter & Promoter Group” to “Public” category.

Mangalore Chemicals and Fertilizers stock is down by 1.99% on the NSE, trading at ₹108.45, after shut down of its Ammonia and Urea plants for planned maintenance. Production is scheduled to resume by October-end 2023.

Major gainers at 3 pm

Eicher Motors (2.53%); Hero Motocorp (1.86%); Nestle India (1.60%); Bajaj Auto (1.43%); Tata Steel (1.30%)

Major losers: IndusInd (-1.55%); Tech Mahindra (-1.30%); Cipla (-1.22%); Kotak Bank (-1.14%); Bajaj Finserv (-0.96%)

1,820 stocks advanced on the BSE at 3 pm on Tuesday against 1,803 stocks that declined; 144 stocks remain unchanged. The total stocks traded were 3,767. The number of stocks that recorded a 52-week high was 164, and those that hit a 52-week low was 29.

A team from the USFDA, including Commissioner Dr. Robert M. Califf, India Country Director Dr. Sarah McMullen, and other officials, visited the Divi’s Laboratories manufacturing facility in Choutuppal, Telangana. The stock is up by 0.87 per cent on the NSE, trading at ₹3,760.80.

Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) reduced by 25.6 per cent y-o-y to Rs 5.32 lakh crore as of June 30, 2023, due to lower slippages, steady recoveries and upgrades and write-offs. Gross NPAs dropped in Q1FY24, despite a healthy growth of advances of 16.7 per cent y-o-y in the same period. The GNPA ratio of SCBs reduced to 3.7 per cent as of June 30, 2023, from 5.7 per cent over a year ago.

Net Non-Performing Assets (NNPAs) of SCBs reduced by 34.7 per cent y-o-y to Rs 1.25 lakh crore as of June 30, 2023. The NNPA ratio of SCBs reduced to 0.9 per cent from 1.6 per cent in Q1FY23, which is an all-time low.

SCBs credit cost (annualised) declined by 16 basis points (bps) y-o-y to 0.52 per cent in Q1FY24. Besides, it has been trending down from 1.44 per cent in Q4FY21. Public Sector Banks (PSBs) have been holding substantial buffers for provisions over the last 6-8 quarters, along with a continuous improvement in the asset quality required a lower level of incremental provisioning, resulting in lower credit cost.

Restructured assets for select 10 PSBs reduced by 22.4 per cent y-o-y to Rs 0.97 lakh crore as of June 30, 2023. Meanwhile, restructured assets of six Private Banks (PVBs) declined by 48.5 per cent to Rs 0.17 lakh crore due to repayments made by the borrowers, an uptick in economic activities and also slipping some accounts into the NPAs. Restructured assets (10 PSBs + Six PVBs) as a percentage of net advances stood at 1 per cent as of June 30, 2023, dropping by 60 bps over a year ago period.

Provision Coverage Ratio (PCR) of SCBs expanded by 326 bps y-o-y to 76.5 per cent Q1FY24 due mainly to an improvement in overall asset quality and aggressive provisioning for non-performing assets on the books.

The board of BCL Industries is to terminate the lease for the Jalalabad unit and also shut down the Bathinda edible oil unit in the near future. A portion of the Bathinda edible oils business will be shifted to the Bathinda distillery complex, where BCL has substantial land, power and other infrastructure. The stock is down by 1.89 per cent on the NSE, trading at ₹541.05.

Drugmaker Cipla has launched drone-based deliveries of its critical medicines for hospitals in Himachal Pradesh, in partnership with Sky Air Mobility. The medicines included cardiac, respiratory, and other essential chronic therapies, Cipla said.

The use of drones will support on-time delivery of the company’s medicines to chemists and clinics in remote areas, while minimizing risks including temperature-linked issues affecting cold chain products, it explained. Cipla is a fore-runner among large Indian pharma companies to adopt drone-based deliveries to facilitate supply to stockists in remote areas, the company said. Further, the company aims to extend this service to inaccessible and hilly terrains such as Uttarakhand and the Northeastern regions of the country, it added. Read more

The GST Council, chaired by Union finance minister and comprising state ministers, will meet on October 7.

“The 52nd meeting of the GST Council will be held on 7th October, 2023 at Vigyan Bhawan, New Delhi,” the GST Council said in a post on X.

In the previous meeting on August 2, the council had approved amendments to the Goods and Services Tax (GST) laws to provide clarity on the taxation of casinos, horse racing and online gaming.

We initiate coverage on three Afforable Housing Finance Companies (AHFCs) viz., Aavas Financiers (TP Rs 2070), Aptus Value Housing Finance (TP Rs 380) and Home First Finance (TP Rs 1130) with a BUY rating. Affordable Housing Finance is a multi-year growth opportunity. The AHFCs have registered a five-year AUM CAGR in the range of 28 per cent to 40 per cent, with RoA’s>3.5 per cent and low credit costs (0.2-0.5 per cent 5-year average). The underwriting practices have stood the test of Covid, with minimal write-offs despite lending to the informal customer segment. Competition from large banks/ NBFCs is at bay due to (i) Branch/people intensive business model (ii) customer cashflow based income assessment, low ATS (between 0.8mn-1.1mn) and understanding of local nuances. Yields across players have remained strong and healthy across cycles, while the Cost of Funding has been in control due to NHB borrowings. PPOP/Assets have remained strong in the range of 4.6 per cent to 10.7 per cent despite opex intensive business. The AHFC’s are well capitalised to support growth over the next few years. Higher leverage may impact the RoA. However, it will also improve the RoE profile. We build in an average RoE at 15.3%/18.6%/15.9% for Aavas, Aptus & Home First for FY24-26E, respectively.

Airan (14.53%)

Divgi Torqtransfer Systems (11.76%)

IFCI (10.86%)

Kennametal India (8.71%)

Suratwwala Business Group (7.14%)

Defence Secretary Giridhar Aramane has inaugurated the Security Complex of Mazagon Dock Shipbuilders Ltd (MDL) and unveiled the Customised Corporate MDL stamps released by Indian Postal Services on the occasion of the completion of 250 years of the shipyard. The stock has risen by 3.72% on the NSE, trading at ₹2,238.

Kirloskar Pneumatic Company Limited’s shares were up by 2.86 per cent after the company unveiled its new manufacturing facility in Nashik. The facility is equipped with a 32-ton forge hammer to produce High-Speed Gear Blanks, along with a fabrication unit for manufacturing base frames, pressure vessels, and a range of heat exchangers.

Primarily catering to the requirements of KPCL, the facility is expected to leverage value chain advantages and expedite project execution. Additionally, approximately 25 per cent of the facility’s capacity will be allocated to external customers. Read more

Anupam Rasayan India Ltd.’s shares were up by 0.5 per cent after the company formalised a partnership with the Gujarat government through the signing of three memorandums of understanding (MoUs).

These agreements pertain to afforestation efforts covering a total land area of 150 hectares, with each parcel comprising 50 hectares located in the Narmada, Tapi, and Surat districts. This initiative aligns with the State government’s Green Belt Development Drive, targeting the plantation and maintenance of various tree species. Read more

ICRA predicts a 22 per cent decline in cut and polished diamond exports to $17.2 billion in FY2024, due largely to weakened demand from key consuming nations, inflationary pressures, and a shift in spending away from diamonds. The sector outlook has been revised to negative from stable, with a 31 per cent YoY decline in 5M FY2024.

Western Carriers (India) Ltd has received the capital market regulator SEBI’s nod to raise funds through an Initial Public Offering. The company had filed its draft red herring prospectus with SEBI in June this year, and obtained its observations letter on September 22, 2023, an update with the SEBI showed today.

According to the draft prospectus, the IPO of the Kolkata-based company comprises of a fresh issue of equity shares aggregating up to Rs 500 crore and an offer-for-sale of up to 93.29 lakh equity shares by the promoter Rajendra Sethia. The company proposes to utilise the net proceeds from the fresh issue towards prepayment or scheduled re-payment of a portion of certain outstanding borrowings of Rs 200 crore; funding of capital expenditure requirements of Rs 186 crore towards purchase of commercial vehicles, 40 feet specialised containers and 20-feet normal shipping containers and reach stackers; and balance towards general corporate purposes.

The stock slides down by 0.28% on the NSE, trading at ₹953.70.

The QIB portion has been subscribed 0.04 times, NII 1.50 times, and retail 3.01 times. The issue closes tomorrow.

The NII portion has been subscribed 0.10 times, and retail 0.52 times. The issue closes tomorrow.

The QIB portion has been subscribed 0.68 times, NII 2.23 times, and retail 1.20 times. The issue closes today.

The stock rises by 3.06% on the NSE, trading at ₹613.90.

Saboo Sodium Chloro Limited (SSCL) announced its intention to acquire approximately 6000 Sq. yards of land adjoining its flagship 5-star property, Samskara Resort & Spa, Jaipur. This acquisition aims to facilitate the expansion of Samskara Resort & Spa by adding 100 additional rooms within the next 12-18 months. The stock is up by 1.74% on the BSE, trading at ₹19.84.

Western Carriers (India), multi-modal asset-light logistics company, has received capital markets regulator SEBI’s nod to raise funds through an Initial Public Offering (IPO). The company had filed its draft red herring prospectus with SEBI in June this year, and obtained its observation letter on September 22, as per an SEBI update.

According to the draft prospectus, the IPO of the Kolkata-based logistics company comprises of a fresh issue of equity shares aggregating up to Rs 500 crore and an offer -for-sale of up to 93.29 lakh equity shares by the promoter Rajendra Sethia, the selling shareholder.

The company proposes to utilise the net proceeds from the fresh issue towards prepayment or scheduled re-payment of a portion of certain outstanding borrowings of Rs 200 crore; funding of capital expenditure requirements of Rs 186 crore towards purchase of commercial vehicles, 40 feet specialised containers and 20-feet normal shipping containers and reach stackers; and balance towards general corporate purposes.

Sun Pharma’s stock is up by 1.71% on the NSE, trading at ₹226.45.

HLE Glascoat Ltd has acquired 35.56% stake in Kinam Engineering Industries for the consideration of ₹79.97 crore and 33,407 equity shares representing 0.5% of the equity share capital of KEPL for the consideration of ₹0.03 crore.

HLEGLAS stock declines by 0.44% on the NSE, trading at ₹579.90.

The company had announced that Compact Cotton Yarn at Lodha Unit, Banswara commenced production.

Ayan Mehta has resigned as as Chief - Special Projects of BSE Ltd with effect from October 12, 2023; and Shivkumar Pandey has resigned as Chief Information Security Officer with effect from December 04, 2023. The stock is up by 5.47 per cent on the NSE, trading at ₹1,273.

Soyabean carryover stocks in 2022-23 stood at 2.51 million tonne, up from 180,000 tonne last year, according to the Soybean Processor Association of India data.

The meal export estimates were pegged to jump about three times to 1.8 mt against 0.64 mt. Exports of soyabean meal derivatives in marketing year 2022-23 through August stood at 1.74 mt, with Vietnam being the largest buyer at 505,672 tonne so far, followed by Japan, Nepal and Bangladesh.

India is joining the global bond index, which will prompt $30 billion inflows into its G-Sec market. We believe it will have a profound impact on India’s bond market in the short and longer term, according to Morgan Stanley experts Min Dai, Gek Teng Khoo and Niranjan A Jahagirdar.

In the short term, we expect 10yr G-sec and INR to outperform. We like long 10yr G-sec outright without FX hedge and we also add a bond to our paying 5yr NDOIS trade as we expect the asset swap to tighten. We recommend holding short TWD/ INR and short CNH/INR.

In the medium term, we expect investors to pre-position themselves before the index inclusion in June 2024. The total inflows on the back of GBI-EM inclusion would be $30 billion. Monthly inflows would be $3 billion during the inclusion period.

In the longer term, this could trigger other index inclusion, such as to the Bloomberg Global Aggregate Index, which could attract another $10 billion. Annual inflows into the G-sec market beyond the inclusion could be $18.5 billion.

* The internationalisation of INR and the reform of India’s capital market could lead to SDR inclusion for INR in the end.

Anupam Rasayan has signed three MoUs with the Gujarat Government for afforestation on 150 hectares – 50 hectares each in Narmada, Tapi and Surat districts. The stock trades at ₹883, up by 0.02% on the NSE.

Fincare Small Finance Bank Ltd has received final observations from SEBI for its proposed IPO. The bank plans to raise funds via Initial Public Offerings through issue of equity share capital of face value of ₹10 each, comprising fresh issue aggregating up to ₹625 crore and offer-for-sale aggregating up to 1.70 crore equity shares by Promoter and Investor Selling shareholders.

Fincare Small Finance Bank Ltd is a “digital-first” SFB with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban areas. The bank follows a business model focused on financial inclusion and aims to provide individuals and businesses affordable financial products and services that meet their needs. Bank’s business objective is to enhance access to savings, credit and other financial products for unbanked and under banked individuals, MSMEs and unorganised entities, especially in rural areas, by leveraging technology and last-mile distribution.

Book Running Lead Managers to the IPO: ICICI Securities Ltd, Axis Capital Ltd, IIFL Securities Ltd, SBI Capital Markets Ltd and Ambit Private Ltd.

The Nifty-IT has outperformed the Nifty by around 630bps YTD2023 (830bps QTD) after underperforming by ~3000bps in 2022. We believe the market is taking the view that the worst is over and that revenue/earnings will accelerate sharply in FY25. We have a non-consensus view that FY25 growth is going to be only a tad faster than FY24 with risks that it could be as bad or weaker. While US macro has surprised positively in 2023 so far, deterioration is likely ahead in 2024. We have cut FY25 estimates for much of our coverage.

We remain ‘underweight’ on the Indian IT Services sector, which has seen PE multiple expansions (especially for Tier-2) in the last 6/12 months with no meaningful earnings upgrades. While we have a SELL on most of our coverage, we have upgraded Tech Mahindra to ‘Accumulate’ as we feel that margin expansion in FY26 may surprise on the upside under a new management.

Kotak Mutual Fund has launched an Investor Education And Awareness Initiative, ‘Seekho Paiso ki Bhasha’ in partnership with the Central Board of Secondary Education (CBSE). The initiative is set to pave the way for financial literacy by conducting an extensive series of education and awareness programmes aimed at empowering teachers across India.

Bank Nifty opened the session lower at 44,722.5 versus yesterday’s close of 44,766.1. The index declined further and is now trading at around 44,666, down 0.2 per cent so far today. Supporting the bearish inclination, the advance/decline stands at 4/8. AU Small Finance Bank, up 0.7 per cent, is the top gainer whereas Kotak Mahindra Bank, down 1.2 per cent, is the top loser in the index. Read more

Bandhan Mutual Fund has launched the Bandhan Retirement Fund, with the objective of providing long-term capital appreciation by investing in a mix of equity, debt, and other instruments. The asset allocation strategy provides investors an opportunity to participate in the equity market upside, while cushioning the potential downside during a market fall. The New Fund Offer will open on Thursday, September 28, and close on Thursday, October 12.

GVK Power & Infrastructure Ltd has appointed Sanjeev Kumar Singh as Chief Financial Officer with effect from September 26, 2023. Kumar replaces Anicattu lssac George, who resigned with effect from August 31. The stock has surged by 4.52 per cent on the NSE, trading at ₹10.40.

Major gainers at 12 noon:

Eicher Motors (2.93%); Tata Steel (1.65%); Bajaj Auto (1.48%); Dr Reddy (1.09%); Hero Motocorp (0.93%)

Major losers: IndusInd Bank (-1.34%); Tech Mahindra (-1.23%); Kotak Bank (-1.20%); Asian Paints (-1.18%); Bajaj Finserv (-0.60%)

A total of 1,986 stocks advanced on the BSE at 12 noon on Tuesday, against 1,473 stocks that declined; 154 stocks remained unchanged. The total stocks traded were 3,613. While 141 stocks recorded a 52-week high, 19 hit a 52-week low.

Coromandel International Ltd informed the exchange that commercial paper (10,00 units amounting to ₹500 crore) issued by it on June 27 was redeemed on September 25. The company’s stock has inched up by 0.16 per cent on the NSE, to trade at ₹1,116.50.

Shares of Kennametal India rose about 14 per cent to touch an all-time high of Rs 3,127 in morning trade, with volumes rising 2700 per cent from Monday. Compared to its daily average volume of 9,006 shares so far, more than 1.5 lakh shares have been traded. The stock has risen more than 10 per cent over the last 30 days. At 11.33 am, shares of the company were up 11.5 per cent at Rs 3,060 on the NSE.

After listing at Rs 120 against the IPO price of Rs 70, shares of Madhusudan Masala are ruling at Rs 114. The stock hit a high of Rs 124 earlier

Thangamayil Jewellery Ltd has opened a new branch for silver wear of antique items & imitation jewellery at Madurai, Nethaji Road. The stock has inched up by 0.25 per cent on the NSE, trading at ₹1,216.95.

Gland Pharma has received an Establishment Inspection Report (EIR) from the USFDA, indicating closure of the Pre-Approval Inspection (PAI) for Seven products and Good Manufacturing Practice (GMP) inspection at the company’s Pashamylaram Facility at Hyderabad. Gland Pharma stock rises by 1.76% on the NSE, trading at ₹1,688.95.

Manoj Vaibhav Gems N Jewellers IPO has been subscribed 0.85 times as of 11:12 am on September 26, 2023. The QIB portion has been subscribed 0.60 times, NII 0.94 times, and retail 0.96 times. The issue closes today.

Updater Services IPO has been subscribed 0.09 times as of 11:12 am on September 26, 2023. The NII portion has been subscribed 0.02 times, and retail 0.44 times. The issue closes tomorrow.

The JSW Infrastructure IPO has been subscribed 0.73 times as of 11:09 am on September 26, 2023. The QIB portion has been subscribed 0.03 times, NII 1.06 times, and retail 2.32 times. The issue closes tomorrow.

Major gainers on the BSE at 11 am:

Kennametal India (11%); Ashoka Buildcon (8.79%); IFCI (8.74%); Cochin Shipyard (7.70%); Uflex (5.43%)

Major losers: EKI (-10%); Voltamp Transformers (-3.47%); GR Infra (-3.44%); Bajaj Hindustan Sugar (-3.06%); Triveni Engineering (-3%)

Ujjivan Small Finance Bank Ltd.’s shares were up by 1.07 per cent after the company reported a partnership with SMC Global Securities Limited to extend online trading services to the bank’s clientele. This collaboration will encompass savings, demat, and trading accounts, streamlining the trading experience for Ujjivan SFB’s customers.

Under this arrangement, SMC Global will manage the relationship for trading and demat accounts of Ujjivan SFB customers, providing both full and discount brokerage services.

Ajay Garg, Director and CEO, of SMC Global Securities Ltd., said, “It is prestigious for SMC to tie up with Ujjivan Small Finance Bank as it promises to deliver swift, secure, and hassle-free trading and investment experiences to the Bank’s customers on both mobile and desktop. This partnership will help SMC Global strengthen and solidify its presence and client base across India.”

The shares of Ujjivan Small Finance Bank were up by 0.75 per cent to ₹49.69 at 11 am on the BSE.

After beginning the week on a very volatile note, the Indian benchmark indices are attempting to bounce back today. Nifty 50 is marginally up by 0.1 per cent and is trading at 19,693. Sensex on the other hand is flat at 66,030.

Nifty is getting support around 19,600 for now. Another support is at 19,500. Read more

The Welspun Corp stock has risen by 1.63 per cent on the NSE, and is trading at ₹395.60. Its wholly-owned subsidiary Sintex BAPL had entered into an MoU with the Telangana government to set up a manufacturing unit with up to ₹350 crore investment.

Crude oil futures traded lower on Tuesday morning as the market expressed concerns over the higher interest scenario in most of the major economies across the world.

At 9.50 am on Tuesday, December Brent oil futures were at $91.47, down by 0.45 per cent; and November crude oil futures on WTI (West Texas Intermediate) were at $89.32, down by 0.40 per cent.

October crude oil futures were trading at ₹7437 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹7469, down by 0.43 per cent; and November futures were trading at ₹7350 as against the previous close of ₹7376, down by 0.35 per cent. Read more

Delhivery has joined hands with PE firm Nexus Ventures and Amazon Web Services (AWS) to launch Velocity, a six-week start-up accelerator programme, to nurture and empower the next generation of entrepreneurs and innovators in the logistics landscape. The Delhivery stock has slipped 0.12 per cent on the NSE, and is trading at ₹420.6.

Uncertainty around the US government shutdown, slated to begin from October 1 may cause fresh worries for the market.

Higher supply of papers to finance its deficit and subdued demand owing to shutdown risks has pushed the US 10-year yield to its highest levels since 2007. Moody’s has warned that a shutdown may impact the US’ credit rating and outlook. Investors now await home sales and consumer confidence data to gauge Fed’s future rate trajectory. In Europe, Germany’s IFO business sentiment index fell again in September to 85.7 from 85.8 in August, dragged by a bleak outlook in the services trade and construction sector. Most analysts expect the economy to have contracted in Q3 following stagnation in Q2.

The rupee continued its downward movement for the second straight day and fell by 8 paise to 83.21 against the US dollar in early trade on Tuesday, September 26, 2023 amid massive selling by foreign equity investors and a firm American currency.

Subdued equity market sentiment and elevated level of crude oil prices ¬ hovering above USD 92 a barrel ¬ also put downside pressure on the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.19 and hit the lowest level of 83.23 against the greenback. It later traded at 83.21 against the dollar, registering a fall of 8 paise from its previous close.

On Monday, the rupee declined by 19 paise to close at 83.13 against the dollar. Read more

Equity benchmark indices fell in early trade on Tuesday in line with weak Asian markets and continuous foreign fund outflows.

The 30-share BSE Sensex fell 98.14 points to 65,925.55. The Nifty declined 18.75 points to 19,655.80.

Among the Sensex firms, Asian Paints, Kotak Mahindra Bank, Tech Mahindra, Tata Consultancy Services, Infosys and Axis Bank were the major laggards.

Tata Steel, UltraTech Cement, Larsen & Toubro and Bharti Airtel were among the gainers. Read more

Zen Technologies Limited’s shares were up by 4.36 per cent after the company secured an order from the Ministry of Defence, Government of India. The order, received on September 22, 2023, amounts to approximately ₹227.65 crore and pertains to the supply of Anti-Drone systems. Zen Technologies is the sole vendor for this order.

The contract also encompasses a Comprehensive Maintenance Contract (CMC) post-warranty, valued at ₹43.22 crore. The company is committed to fulfilling its accumulated order book for equipment over the next 18 months, with expectations of securing further substantial orders in the near future. Read more

The NTPC stock has risen by 1.27 per cent on the NSE, and is trading at ₹242.70. The company had invited proposals from power developers for setting up 2,750 megawatt (MW) ISTS-connected solar and wind power capacities across the country.

In a big relief for India Inc, the Ministry of Corporate Affairs (MCA) has now allowed companies —whose annual general meetings (AGMs) are due in the year 2023 and 2024 —to hold them through video conference (VC) mode till September 30, 2024.

In a separate move, the MCA has also allowed companies to hold their extraordinary general meetings (EGMs) via video conference and transact items through postal ballot till end September 2024.

“In continuation to this ministry’s general circular dated May 5 , 2020, general circular dated May 5, 2022, general circular dated December 28, 2022, it has been decided to allow the companies whose AGMs are due in the year 2023 or 2024, to conduct their AGMs through VC or OAVM on or before September 30, 2024,” the MCA said in a circular on Monday. Read more

The silver market was in the neutral zone amid hedge funds’ cautious positioning. This reflects the industrial metal’s resilience despite macroeconomic challenges.

Speculative long positions in Comex silver futures increased by 985 contracts. Short positions also rose by 199 contracts in the silver market.

Silver’s net length expanded to 1,354 contracts, indicating increased investor interest, said Kedia Commodities.

Silver prices may trade within a range of $22.50 to $23.50 per ounce during this week, it added.

Silver has outperformed gold, with the gold/silver ratio falling below 82 points.

The market will turn bullish on silver due to a growing supply and demand imbalance.

High demand for silver in the solar power sector is driving market optimism. Silver mine supply continues to decline, contributing to its bullish outlook.

Investors see silver as a safe-haven asset amid the Federal Reserve’s monetary policy stance.

It has the potential to shine as the US deficit surpasses $33 trillion, supporting its appeal.

Growing economic uncertainty contrasts with the Federal Reserve’s hawkish stance.

Major gainers at 9:30 am: Eicher Motors (3.41%); Tata Steel (1.37%); Dr Reddy (1.19%); LT (1.19%); Ultratech Cement (0.94%)

Major losers: Apollo Hospitals (-1.04%); Asian Paints (-1%); Tech Mahindra (-0.76%); TCS (-0.73%); Infosys (-0.55%)

“There are two forces influencing the market trend now. On the positive side, the strength of the Indian economy, good corporate earnings trend and flows into mutual funds, particularly SIPs, are supportive indicators. But the bulls are on the back foot since negative global cues indicate caution. The US 10-year bond yield climbing to a 10-month high of 4.54 per cent and the dollar index spiking to 105.94 are headwinds for the market. This is reflected in sustained FII selling, which has taken the net FII sell figure in September, so far, to Rs 20,593 crore. Buying by DIIs, at Rs 13,748 crore, is supporting the market, but is not strong enough to give confidence to the bulls. It remains to be seen how this tug-of-war plays out in the near-term.

Meanwhile, long-term investors can utilise the weakness in the market as an opportunity to buy high quality stocks in financials, capital goods and autos, ignoring near-term volatility in the market.”

Crude oil futures traded lower on Tuesday morning as the market expressed concerns over the higher interest scenario in most of the major economies in the world. Added to this, some investment banks and brokerages downgraded their economic growth outlook for China. At 9.19 am on Tuesday, December Brent oil futures were at $91.47, down by 0.45 per cent; and November crude oil futures on WTI (West Texas Intermediate) were at $89.33, down by 0.39 per cent. October crude oil futures were trading at ₹7,442 on the Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹7469, down by 0.36 per cent; and November futures were trading at ₹7349 as against the previous close of ₹7376, down by 0.37 per cent.

The Indian stock market, represented by the Sensex and Nifty indices, had a flat opening on Tuesday, influenced by negative trends in global markets. Despite a positive performance in US stocks, early trading in Asia-Pacific equities showed declines.

As of 9:15 am, the 30-share BSE Sensex showed a marginal increase of 23.33 points, reaching 66,047.02, while the NSE Nifty saw a slight gain of 8.10 points, reaching 19,682.65.

Gainers among the Sensex constituents included Eicher Motors, Tata Steel, Dr. Reddy’s, L&T, and Tata Consumer, while Asian Paints, Apollo Hospitals, TCS, Kotak Bank, and Hindustan Unilever were among the decliners.

Market analysts anticipate ongoing volatility due to concerns regarding the impact of rising oil prices on economic growth.

Prashanth Tapse of Mehta Equities said, “Bearish sentiment across the Asian markets could drag down local shares in early Tuesday trades. FII selling in the current month so far has precipitated the fall, with rising US dollar index & treasury yields coupled with higher crude oil prices further dampening the sentiment. Renewed worries over major central banks resorting to likely rate hikes to rein in inflation are making investors jittery about the sluggish demand and slowdown in growth going ahead. Technically, Nifty’s biggest support for today’s trade is placed at 19589 mark.”

Poonawalla Fincorp Limited is a Cyrus Poonawalla group has received permission from the Reserve Bank of India (RBI) to issue co-branded credit card with IndusInd Bank. The company envisages to launch this credit card within three months. Read more

Transworld Holdings Ltd (THL), the promoter of Shreyas Shipping & Logistics Ltd. (SSL) has announced to acquire shares of SSL from investors at a revised indicative price of Rs 375 per share as compared to the earlier offer of Rs 338 per share.

The company had announced its intention to voluntarily delist the equity shares of its Indian subsidiary, SSL through Initial Public Announcement dated May 21, 2023

The delisting offer was opened on September 20

Trading Members of the Exchange are hereby informed that effective from September 26, 2023, the equity shares of Nuvama Wealth Management Ltd (Scrip Code: 543988) are listed and admitted to dealings on the Exchange in the list of ‘‘T’‘ Group Securities. For further details please refer to the notice no 20230922-15 dated September 22, 2023.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

“Bearish sentiment across the Asian markets could drag down local shares in early Tuesday trades. FII selling in the current month so far has precipitated the fall, with rising US dollar index & treasury yields coupled with higher crude oil prices further dampening the sentiment. Renewed worries over major central banks resorting to likely rate hikes to rein in inflation are making investors jittery about the sluggish demand and slowdown in growth going ahead. Technically, Nifty’s biggest support for today’s trade is placed at 19589 mark.”

The exchanges have extended the short-term additional surveillance measure (ASM) and trade-for-trade settlement framework to small and medium enterprises (SME) stocks. This will be made applicable from October 3.

Two separate circulars issued by the exchanges said the Short Term ASM and Trade for Trade (TFT) frameworks would be extended to SMEs.

“Market participants may note that TFT framework shall be in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time. Further, It may be noted that the shortlisting of securities under TFT is purely on account of market surveillance, and it should not be construed as an adverse action against the concerned company / entity,” a BSE circular said.

Applicable rate of margin is 50 per cent or existing total margins, whichever is higher for short term ASM stocks.

Intraday trades are not allowed in the T2T segment, as all buy and sell transactions will be compulsorily delivered.

Updater Services IPO sees muted response on on Day 1

issue comes with a price band of ₹280-300

The initial public offering of Updater Serivices saw a lacklustre response from retail investors. The issue was subscribed just 6 per cent, that too thanks to retail investors.

The company has fixed market lot of ₹280-300 and the market lot is 50 shares.

As against nearly 2 crore shares on offer, the IPO receive bids for 6.98 lakh shares.

The Chennai-based company IPO consists of ₹400 crore fresh issue and an offer for sale of up to 80 lakh shares (worth ₹240 crore).

JSW Infra subscribed 43 per cent, retail investors’ portion covered fully on Day 1 itself

The ₹2,800-crore initial public offering of JSW Infrastructure was subscribed 43 per cent at the end of Day 1 of issue opening. The company has fixed the price band as ₹113 to ₹119 and the market lot is 126 shares.

The Issue is entirely a fresh issue of equity shares.

As against 13.63 crore shares on offer, the IPO received bids for 5.84 crore shares. While retail investors portion was subscribed 1.38 times, the quota for Non-insitution investors and qualified institutional buys received bids for 0.60 times and 0.03 times respectively.

JSW Infrastructure Limited, a part of the JSW Group, has raised raised ₹1,260 crore from 65 anchor investors on September 22, ahead of issue opening. The Sajjan Jindal company said it has finalised allocation of about 10.59 crore shares to anchor investors at ₹119 a share.

Manoj Vaibhav issue closes todayThe ₹270.20-crore initial public offering of Manoj Vaibhav Gems ‘N’ Jewellers Limited will close today for public subscription. The issue has so far been subscribed just 58 per cent on Day 2.

The market lot is 69 shares.

Equirus Quant: Expiry Quick Round Up:D-3

#Nifty Roll : 35% (v/s 36%) | OI base ( 11.8 Mn shrs v/s 14.3 Mn shrs),

#BNF Roll : 42%(v/s 37%) | OI base( 2.6 Mn v/s 2.9 Mn),

#MW Roll: 41%( v/s 43%) | Rolled OI ( 2902 v/s 2799 Mn shrs),

#Roll cost level: ~ 70-72 (v/s 68-70 of previous series)*

Top Roll(current series in %):

# RBLBANK 64.7

# GRASIM 58.3

# ZEEL 57.5

# HDFCBANK 57.1

# JINDALSTEL 55.9

# DIVISLAB 54.5

Top Incremental Roll(DOD in %):

# ZEEL 57.55 v/s 4.68

# DIVISLAB 54.51 v/s 9.48

# DLF 52.6 v/s 13.4

# BAJAJ-AUTO 50.19 v/s 11.84

# PEL 47.37 v/s 11.32

# PNB 51.37 v/s 16.11

Top Roll(v/s Previous Series D-3 in %):

# INDIACEM 44.65 v/s 6.83

# BHEL 45.6 v/s 25.49

# BAJAJ-AUTO 50.19 v/s 30.7

# RBLBANK 64.76 v/s 47.02

# DLF 52.6 v/s 36.66

# CHOLAFIN 44.83 v/s 31.29

Top Pending Roll(Qty in lacs):

# IBULHSGFIN 504 v/s 172

# GLENMARK 74 v/s 31

# ABCAPITAL 304 v/s 136

# ADANIPORTS 372 v/s 195

# POWERGRID 540 v/s 293

# GRANULES 96 v/s 55

Stocks in BAN( OI% of MWPL)

# BALRAMCHIN 100%

# CANBK 90%

# GRANULES 85%

# HINDCOPPER 85%

# IBULHSGFIN 84%

Crude oil futures settled lower due to concerns over energy demand and interest rates.

A stronger dollar, driven by hawkish comments from central banks, weighed on oil prices.

West Texas Intermediate Crude oil futures for November closed down 0.4% at $89.68 a barrel.

Brent crude futures saw a slight gain, ending at $93.29 a barrel.

Russia modified its export ban, lifting restrictions on some fuel types but keeping gasoline and high-quality diesel bans in place.

Global bond market selloff impacted oil prices amid worries about global growth prospects.

Hedge fund bullish bets on oil reached their highest levels since February 2022, potentially affecting future price movements.

The market regulator SEBI has extended the short-term additional surveillance measure (ASM) and trade-for-trade settlement framework to small and medium enterprises (SME) stocks on the back of sharp run up in prices in the last few month.

Motilal Oswal expects HDFC Bank loan growth is likely to remain healthy and expects it to double the balance sheet in nearly four years which is close to the historical run-rate.

The recent liquidity built up places the bank well to pursue growth in FY24 without worrying much on the funding side while deposits still remain a key funding source.

HDFC Bank plans to continue with an aggressive branch expansion run-rate of 1400-1500 branches in FY24 with over 90 per cent of new branches already tracking well.

The bank has one of the highest deposit productivity in the industry, it said.

Ex-date AGM: BF Utilities, Kaveri Seed Co.

Move Into Short-Term ASM Framework: Mufin Green Finance.

Move Out Of Short-Term ASM Framework: Hindustan Construction Co., Jaiprakash Associates, PDS, Rane (Madras).

Prime Focus: Promoters A2R Holdings revoked a pledge of 13.6 crore shares, Naresh Mahendranath Malhotra revoked a pledge of 5.86 crore shares, and Namit Naresh Malhotra revoked a pledge of 1.49 crore shares on Sept. 20.

IRB Infrastructure Developers: Promoter IRB Holdings bought 1.09 lakh shares on Sept. 25.

UY Fincorp: Promoter Udai Kothari bought 1.13 lakh shares between Sept. 21 and 22.

DB Realty: Promoter Shanita Deepak Jain sold 10,052 shares on Sept. 20.

Som Distilleries and Breweries: Promoter Jagdish Kumar Arora bought 10,000 shares on Sept. 25.

Maharashtra Seamless: Promoter Dharam Pal Jindal bought 31,800 between Sept. 20 and 21.

Delta Corp.: Ashish Rameshchandra Kacholia sold 15 lakh shares (0.56%) for Rs 144.65 apiece.

Indiabulls Real Estate: Creditcorp Investment Advisors sold 30.95 lakh shares (0.57%) for Rs 85.38 apiece.

Manoj Vaibhav Gems ‘N’ Jewellers: The IPO was subscribed 58%, or 0.58 times, on its second day. The bids were led by retail investors (0.73 times), non-institutional investors (0.57 times) and institutional investors (0.33 times). The issue was subscribed to 13%, or 0.13 times, on Day 1.

Updater Services: The IPO was subscribed to 0.06 times, or 6%, on its first day. The bids were led by retail investors (0.30 times, or 30%) and non-institutional investors (0.1 times, or 1%). The issue received zero bids from institutional investors.

*JSW Infrastructure:*The IPO was subscribed 0.43 times, or 43%, on its first day. The bids were led by retail investors (1.38 times), non-institutional investors (0.60 times, or 60%), and institutional investors (0.03 times, or 3%).

New Listings Nuvama Wealth Management: Equity shares of Nuvama Wealth Management, formerly known as Edelweiss Securites, will be listed and admitted for dealing on the BSE and the National Stock Exchange on Tuesday.

RPP Infra Project: The company bagged orders of over Rs 470 crore in Tamil Nadu and Karnataka.

Salasar Techno: The company commissioned its zinc galvanization plant with an annual capacity of 96,000 metric tonnes in UP.

Vishnu Prakash R Punglia: The company reported a 49.44% rise in revenue year-on-year at Rs 278.17 crore. Net profit was up 52.55% to Rs 16.43 crore.

Greenply Industries: The company’s operations resumed at the Gabon, West Africa, facility after a protest by the local workforce. Discussion between authorities and labour agencies is ongoing to resolve the issues completely.

Ind-Swift Laboratories: The board approved the merger of Ind-Swift with itself to consolidate businesses and strengthen its competitive position. It will give 100 shares for every 655 shares held in Ind-Swift after the merger.

Highways Infrastructure Trust: The board has approved rights issues of Rs 514 crore at Rs 77.96 apiece, which will be open from Oct. 9 to 11.

DB Realty: The company will acquire shares in Bamboo Hotel Global Centre, Goan Hotels & Realty, and BD And P Hotels for more than Rs 2,300 crore, with the intent to enter the hospitality business.

Kalpataru Projects International: The company will raise Rs 150 crore via NCDs through private placement

Century Textiles: Unit Birla Estates has successfully launched Phase 1 of Birla Trimaya in Bengaluru’s Devanahalli. The project is expected to have a revenue potential of Rs 3000 crore.

HDFC AMC: The company will invest Rs 25 crore in unit HDFC AMC International to help it meet the net worth requirements prescribed for Registered Fund Management Entity (Retail) under IFSC rules.

Mahindra & Mahindra: Canada’s Ontario will buy a 20% stake in company unit Mahindra Teqo for Rs 35 crore. The stake sale will be completed by Jan. 3, 2024.

Reliance Industries: The company has issued a postal ballot notice to seek shareholders’ approval to appoint Isha Ambani, Anant Ambani, and Akash Ambani as non-executive directors. The voting will be held between Sept. 27 and Oct. 26.

Welspun Corp Limited has announced that its wholly owned subsidiary Sintex BAPL has entered into an MOU with the state government of Telangana to set up a manufacturing unit in the state with up to Rs 350 crore investment. The proposed project is under the state government’s incentive scheme and will be manufacturing water tanks and pipes. Along with growing its market reach in water tanks segment, Sintex, a national iconic brand, plans to make its foray into pipes business through this project, which will have a mix of different types of PVC pipes and fittings.

Sheela Foam has raised to Rs 1,200 crore via QIP. It will allocate 1.11 crore shares at Rs 1,078 apiece for QIBs.

SMC Global Securities Limited has announced a strategic partnership with Ujjivan Small Finance Bank to offer online trading services to the Bank’s customers. This association will offer services comprising Savings, Demat and Trading accounts, providing a hassle-free and convenient trading experience to Ujjivan SFB’s customers.

RPP Infra Projects Ltd has received a letter of acceptance for a new projects viz, Road and Drain Works-1 for CBR Project of CPCL at Nagapattinam, Tamil Nadu ,at a contract price of Rs 300.44 crore (Incl of GST), Provision of civil works and Allied Services for Engine Test Facility along with Ancillary work for GRTE at Rajankute, Bengaluru, Karnataka at a contract price of Rs 90.18 crore (Incl GST) , and Thoothukudi Corporation - Construction of Storm Water Drain from Ponsubbiah Nagar to Loorthammalpuram Main Road package 4 under ADB Tamilnadu Urban flagship investment Program-tranche 3 at a contract price of Rs 16.88 Crore (Incl GST).

Buzzing Stocks: Wipro, Tata Steel, Indian Bank, Reliance Industries, Arvog, Oriental Rail, Mankind Pharma, RSWM, Mangalore Chem, SMC Global, Ujjivan SFB, Choice International, GR Infraprojects, Fortis Healthcare, Welspun Corp, RPP Infram Sheela Foam, Century Textiles

Cintas Corporation (Pre market) (Sector- Miscellaneous)

Ferguson plc (Pre market) (Sector- Construction)

TD SYNNEX Corporation (Pre market) (Sector- Technology)

Costco Wholesale Corporation (Post Market) (Sector- Retail)

19:30 U.S. New Home Sales (Expected: 699k versus Previous: 714K)

19:30 U.S. CB Consumer Confidence (Expected: 105.5 versus Previous: 106.1)

CORALAB

General

TAPARIA

General

VINNYOVERSEAS

Right Issue of Equity Shares;Increase in Authorised Capital

ZUARIIND

General

SHRADHAIND

Stock Split From Rs.10/- to Rs.5/-

BALRAMPUR

CANBK

GRANULES

HINDCOPPER

IBULHSGFIN

Ex-Dividend 27 September 2023 (Tomorrow)

Last date for Cum-Dividend Today

Semac Consultants Ltd

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 1869

West Leisure Resorts Ltd

Dividend Per Share Rs.0.1

Previous day Closing Price – Rs. 189.05

The Finance Ministry has notified final rules outlining valuation methods for non-resident and resident investors under the new angel tax mechanism based on changes made in the Finance Act 2023.

The ICICI Securities report focuses on ‘through-the-cycle’ compounders, stocks that thrive during economic upturns and preserve value in downturns. Key findings emphasise the importance of a focused business model, value-creating growth, and positive cash flow for long-term success.

The other top performers included KEI Industries, Bajaj Finance, Titan Company, Relaxo Footwears and Havells India.

India’s technical textiles exports are expected to surge by leaps and bounds in the coming years as it has just begun to explore the segment, The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) Chairman Badresh Dodhia has said.

In a dramatic turnaround and with five days to go before the normal end of the season, the monsoon has cut down the all-India rain deficit to just five per cent. The shortfall is now limited to parts of East and North-East India and the South Peninsula, with Kerala heading the table (-38 per cent), rainfall statistics available on Monday said.

The Central Board of Direct Taxes (CBDT) has notified classes of Non-Banking Financial Companies (NBFCs) which will be eligible for provision of Income Tax Act related with certain deductions to be only on actual payment. This is a crucial notification concerning the payment of interest on loans to NBFCs.

Larsen & Toubro’s first-ever share buyback has received stupendous response, being subscribed 7.2 times, according to data on the National Stock Exchange. Against the 3.13 crore shares on offer, the company received offers for 22.55 core shares for a staggering ₹72,160 crore. The company had fixed the buyback size at just over ₹10,000 crore.

IT major Wipro said on Monday that it has executed an agreement to sell a parcel of land measuring 14 acre and 02 cents, along with a 20-year-old building at Chennai’s IT corridor of Sholinganallur to Casagrand Bizpark Private Ltd for a consideration of ₹266.38 crore.

HDFC Bank shared details on the merged performance, which provided initial insights into how the numbers would stake up in the near term. Given the adjustments related to higher-than-expected cost ratio and lower NIMs, RoA compression in the near term is likely and the bank is expected to report RoA of about 1.8 per cent in FY2024/2025.

We introduce FY26 estimates and upgrade the stock to ‘Buy’ from Hold as we roll forward to Sep’25E, revised TP of ₹2,908 @ 33x FY26 EPS (₹2,319 earlier).

We met management of KEI Industries (KEI) to gauge the demand, competitive scenario and capacity constraints.

Moody’s Investors Service revised Tata Steel outlook to ‘stable’ and upgraded its long-term rating on expectation of higher profit and efforts to reduce debt.

FMCG companies are betting big on quick commerce channels. This comes at a time when consumers are increasingly turning to platforms such as Blinkit, Zepto and Swiggy Instamart for not only their impulse purchases but also for regular planned purchases. Read more

The first of its kind all-in-one affordable insurance product, Bima Vistaar — offering life, health and property cover — is likely to be rolled out soon.

The IPO of JSW Infrastructure opens on September 25, and closes on September 27. The ₹2,800-crore issue is an entirely fresh issue and will be used for following purposes: ₹1,200 crore for capex, ₹880 crore for debt repayment and balance for general corporate purposes.

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

Bandhan Bank share price has been moving up gradually since mid-July this year. This uptrend is intact and strong. There is room left within the uptrend for the stock to move further higher before a correction sets in. Read more

On Tuesday, Asian stock markets are displaying weakness due to renewed concerns about China’s property sector. Meanwhile, Wall Street concluded with gains, and the U.S. bond market continued its sell-off for the fourth consecutive week. Additionally, a measure of the dollar’s strength has reached its peak for the year.

Furthermore, the Japanese yen is approaching 150 per dollar, and Japanese authorities have not intervened to address this situation. This lack of intervention is likely to dampen any risk appetite that investors may have.

Here are the current trends for key Asian indices:

Japan’s Nikkei 225 index stands at 32,391.13, down 287.49 points (a decrease of 0.88%).

The broader Topix index in Japan is at 2,372.07, showing a decline of 13.43 points (a decrease of 0.56%).

South Korea’s Kospi index is at 2,467.78, down 27.98 points (a decrease of 1.12%).

Australia’s S&P/ASX 100 is at 5,919.70, down 24.40 points (a decrease of 0.41%).

The Dow Jones Industrial Average rose 43.04 points, or 0.13%, to 34,006.88; the S&P 500 gained 17.38 points, or 0.40%, at 4,337.44; and the Nasdaq Composite added 59.51 points, or 0.45%, at 13,271.32.