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US stocks waver with all eyes on Jackson Hole meet
US stocks opened mixed in what’s shaping up to be another quiet session for Wall Street, with data painting a mixed picture of the economy and traders cautiously awaiting a key speech by Federal Reserve Chair Jerome Powell.Dow Jones Industrial Average fell 68 points, or 0.21%. S&P 500 and Nasdaq Composite climbed 0.25% and 0.54%, respectively.
HDFC Bank to pick 10% stake in Go Digit Life Insurance
India’s largest private lender HDFC Bank today announced that it will invest between Rs 49.9 crore to Rs 69.9 crore to pick up nearly 10 per cent stake in Go Digit Life Insurance, owned by promoters of IPO-bound Go Digit General Insurance.“This is to inform you that HDFC Bank Limited on August 24, 2022 has entered into an indicative and non-binding term sheet with Go Digit Life Insurance Limited which summarizes the principal terms of a proposed investment, by HDFC Bank in the company, of an amount between Rs 49.9 crore to Rs 69.9 crore, in two tranches, by subscribing to equity shares of the company, for an equity stake of up to 9.944 per cent of the paid-up equity share capital of the Company,” the bank said in an exchange filing.
FUND FLOW ACTIVITY
#MarketsWithETNOW | Check out the #FundFlow activity for August 25th! https://t.co/QHW0ZMorC7
— ET NOW (@ETNOWlive) 1661431433000
Government revision shows economy shrank 0.6% last quarter
Most economists, though, have said they doubt the economy is in or on the verge of a recession, given that America’s job market remains robust, with strong hiring, low unemployment and widespread openings. Still, inflation is near a four-decade high and is punishing consumers and businesses. And the Federal Reserve’s aggressive efforts to tame inflation through steep interest rate hikes are raising the risk of an eventual recession.
In its revised estimate Thursday, the Commerce Department calculated that the nation’s gross domestic product — the broadest measure of economic output — contracted last quarter, though less than the 1.6% annual decline in the January-March period. In its previous estimate for the April-June quarter, the government had estimated that the economy had shrunk at a 0.9% rate.
Nifty formed an engulfing pattern after two days of positive move setting a stage for a bearish reversal. The momentum indicator RSI is also pointing toward a negative momentum in the near term. On the lower end, 17480 is likely to act as initial support; a fall below 17480 may take the index towards 17350. Below 17350 the Nifty may drift down towards 17000-16950. On the higher end, resistance is visible at 17700.
– Rupak De, Senior Technical Analyst at LKP Securities
Gold rallies Rs 402 on strong global cues
Gold prices on Thursday rose by Rs 402 to Rs 52,297 per 10 grams amid strong global cues, according to HDFC Securities. The yellow metal had closed at Rs 51,895 per 10 grams in the previous trade.Silver also rallied Rs 711 to Rs 56,191 per kg from Rs 55,480 per kg in the previous trade.In the international market, gold was trading higher at USD 1,763 per ounce while silver was flat at USD 19.35 per ounce.
Ahead of the Jackson Hole symposium, investors across the world are eagerly expecting the Fed chair’s speech to evaluate the outlook for monetary policy and determine whether the central bank can achieve a soft landing for the economy. Crude prices rose as Saudi Arabia suggested that OPEC+ supply may be reduced to address market instability. Although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.
– Vinod Nair, Head of Research at Geojit Financial Services
Rupee close today
Rupee falls 3 paise to close at 79.89 (provisional) against US dollar
— Press Trust of India (@PTI_News) 1661422619000
Debt-funded acquisitions can put pressure on Adani group ratings: S&P
Richest Indian Gautam Adani’s group, which has grown on acquisitions, has fairly solid fundamentals but debt-funded future acquisitions can start putting pressure on ratings, S&P Global Ratings said on Thursday. Starting out as a commodities trader in 1988, the Adani group has diversified from mines, ports and power plants into airports, data centres and defence. It recently forayed into the cement sector with a USD 10.5 billion acquisition of Holcim’s India units and is also looking to set up an aluminium factory. Most of this expansion has been funded by debt.
The Bank index witnessed selling pressure from higher levels and failed to surpass the hurdle of 39,500 on the upside. The immediate downside support stands at the 38,500-38,400 zone and if breached will lead to further selling pressure on the downside. The index needs to break the range of 38,500-39,500 for decisive trending moves on either side.
– Kunal Shah – Senior Technical & Derivative Analyst at LKP Securities
PSU Bank, Realty only sectoral gainers
Closing Bell: Sensex sinks 710 pts from day’s high, ends 311 pts lower; Nifty below 17,550; Bajaj Finance drops 2%, Axis Bank 1%
Top index drags
Sensex erases all gains, slips into the red
LIC dilutes stake in Nagpur Power & Industries
LIC has diluted its stake in Nagpur Power & Industries by over 2 per cent through open market sales, bringing down its stake to 8.33 per cent. The government-owned life insurance behemoth in a regulatory filing on Thursday said its shareholding in Nagpur Power & Industries has diluted from 10.56 per cent (13,82,743 shares) to 8.33 per cent (10,90,747 shares) of the paid-up capital of the company.
Where is market headed? Shankar Sharma decodes
LIVE | Market Makers with @1shankarsharma @AyeshaFaridi1 #StockMarket #StocksToWatch https://t.co/gNaPrkIlG9
— ET NOW (@ETNOWlive) 1661418124000
While there’s been a sharp run up in stocks in recent times, select sectors will see money coming based on their prospects. For example, banking and credit cycle is expected to have bottomed out and this is the sector that faced the brunt of FII selling. Any revival in FII activity will see money move into this space. IT sector as another example is expected to be a be out of favour given that there’s margin pressure and slowdown expected. Apart from that, for small and midcaps, it is largely expected to be a stock picker’s market.
– Nitasha Shankar, Head – PRS Equity Research, YES SECURITIES
India has ample forex buffers to withstand pressure on credit worthiness: S&P
India has built up buffers against cyclical difficulties and has ample foreign exchange reserves to withstand pressure on credit worthiness, S&P Global Ratings said on Thursday. Speaking at the India Credit Spotlight 2022 webinar, S&P Sovereign & International Public Finance Ratings Director Andrew Wood said the country has a strong external balance sheet and limited external debt, making debt servicing not so expensive. “The country has built up buffers against cyclical difficulties like those, which we are experiencing right now,” Wood said.
NIfty PSU Bank surges 3.5%; Central Bank top gainer
Policybazaar shares rally 8% today
Before trading flat later in the day, shares of Policybazaar, which is run by PB Fintech NSE 0.33 %, rallied as much as 8 per cent to hit the day’s high at Rs 553.95 on August 25, 2022.On August 24, 2022, the new-age company announced incorporation of a subsidiary in Abu Dhabi and investment of Rs 250 crore in Paisabazaar and Rs 650 crore in Policybazaar.
Piramal Enterprises will be demerging its pharma business into a separate entity – Piramal Pharma Ltd, which will be listed on both the exchanges. Check out all the details
#MarketsWithETNOW | Piramal Enterprises will be demerging its pharma business into a separate entity – Piramal Phar… https://t.co/vaHOQgELew
— ET NOW (@ETNOWlive) 1661410136000
India’s robust growth gives RBI room for more rate hikes – DBS
India’s strong growth offers room for the Reserve Bank of India to raise rates by another 60 basis points as the central bank seeks to stamp out high inflation, DBS Group Research said in a note on Thursday.India’s gross domestic product (GDP) in the first quarter of current fiscal year likely surged 16% year-on-year based on most leading indicators, the research house estimated.
IT stocks fall; top 5 losers from the pack
Price as on 25 Aug, 2022 12:43 PM, Click on company names for their live prices.
NIFTY REALTY rallies 2%; all constituents in the green
Samvardhana Motherson International and Ministry of Investment, Kingdom of Saudi Arabia (MISA), have signed a Memorandum of Understanding which aims to identify investment development opportunities for industrial and service activities in the Kingdom of Saudi Arabia (KSA).
Price as on 25 Aug, 2022 11:45 AM, Click on company names for their live prices.
RBL Bank, BHEL among most active stocks on NSE
Price as on 25 Aug, 2022 11:23 AM, Click on company names for their live prices.
BLOCK DEAL: 20 lakh shares of PFC change hands
Price as on 25 Aug, 2022 11:03 AM, Click on company names for their live prices.
Indian Oil Corp, the country’s top refiner, has set a 2046 net zero carbon emissions goal, its chairman S. M. Vaidya said at annual shareholders meet on Thursday. India, one of the world’s biggest greenhouse gas emitters, is aiming to reach net zero emissions by 2070.
Price as on 25 Aug, 2022 10:59 AM, Click on company names for their live prices.
Why this Rakesh Jhunjhunwala stock surged 12%
Shares of Anant Raj, one of the stocks from late Rakesh Jhunjhunwala’s portfolio, zoomed more than 12 per cent during early trading session on Thursday. The company, in a regulatory filing, announced that it has reclassified select shareholding from ‘Promoters and Promoter Group’ to ‘Public’ category. The realty firm has received the approval for the same from BSE and National Stock Exchange (NSE), the filing with bourses added. It has made the application for the mentioned reclassification in October 2021.
Eight years of systemic reforms increased india’s macroeconomic stability: RBI MPC Member Ashima Goyal
Goyal further said appropriate countercyclical macroeconomic policy with continuing supply-side improvements has enabled a growth recovery that is among the best in the world.
“Just before the Modi government came in, the country was facing serious macroeconomic instability after the global financial crisis.
India bond yields rise, tracking moves in U.S. Treasuries
Indian government bond yields were higher on Thursday, tracking a consistent spike in U.S. Treasury yields, while high oil prices stoked inflation fears. The benchmark 10-year government bond yield was at 7.2998% as of 0500 GMT. The yield has risen 11 basis points in the last five sessions. It had ended at 7.2858% on Wednesday. The new 10-year 7.26% 2032 bond yield was at 7.2798% after closing at 7.2727% on Wednesday. “Bonds are reacting to developments globally and both oil prices and U.S. yields have now turned against bullish bets,” a trader with a state-run bank said.
Ahmedabad-based Torrent Pharmaceuticals is set to acquire Curatio Healthcare, a manufacturer of skincare products. The deal will value Curatio at Rs 2,100 crore, said people aware of the development.
Price as on 25 Aug, 2022 10:30 AM, Click on company names for their live prices.
IPO WATCH: DreamFolks IPO subscribed over 2x so far on Day 2
D-Street’s valuation premium at record high vs peers
The valuation premium of Indian equities over emerging and developed markets hit a record high in August, Bloomberg data show. The MSCI India index—a benchmark for global fund managers to assess the country’s investment performance—now has a valuation premium of 96% and 39% over the MSCI Emerging Markets and the MSCI World indices, respectively. Over the long term, India has traded at 45% and 8% premium to the EM and DM markets.
A revisit of 17966 is on the cards with 17730 and 17800 poised to ask questions. Alternatively, inability to float above 17690 would diminish upside hopes, but we prefer to keep the downside marker at 17550.
– Anand James – Chief Market Strategist at Geojit Financial Services
BLOCK DEAL: Multiple block deals in BHEL; stocks jumps 10%
Price as on 25 Aug, 2022 10:03 AM, Click on company names for their live prices.
NDTV says Adani needs Sebi nod to buy its top shareholder
NDTV on Thursday informed stock exchanges said Adani companies requires Sebi approval to secure 99.5 per cent interests in the promoter vehicle, as its founders are barred from trading in securities markets. NDTV noted that Sebi had on November 27, 2020, restrained founder-promoters Prannoy Roy and Radhika Roy from accessing the securities market. It further prohibited buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of two years, which expires on November 26, 2022, unless pending appeal proceedings were to successfully conclude prior.
Singapore Telecommunications (Singtel) has decided to sell a 3.33% stake in Bharti Airtel to Bharti Telecom (BTL) – the promoter company of Airtel – for SGD2.25 billion ($1.61 billion approx).
Price as on 25 Aug, 2022 09:32 AM, Click on company names for their live prices.
Market View: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The Bank Nifty is strong and is likely to remain strong since it has fundamental support. Large-caps are better placed in the current phase of the market. The resilience of the capital goods segment reflects the expanding capex cycle theme.
RBL Bank, IDFC First Bank, Yes Bank among most active stocks on NSE
Price as on 25 Aug, 2022 09:27 AM, Click on company names for their live prices.
OPENING BELL: Sensex advances 250 points, Nifty50 above 17,650; Bharti Airtel, Tata Steel rise 1% each
Rupee opens flat at 79.8200 per US dollar; previous close 79.8075
BROKERAGE RADAR | CLSA maintains sell on Tata Power
#BrokerageRadar | CLSA on @TataPower: Maintain Sell as the stock remains expensive, targets for 4x PAT over FY22-27… https://t.co/CRyjQMsZFE
— ET NOW (@ETNOWlive) 1661391490000
Asian markets gain, investors anxious for US rate hike clues
Asian share markets were broadly positive while the dollar was slightly weaker on Thursday, with investors nervously awaiting the U.S. Federal Reserve’s annual Jackson Hole conference for clues on how sharp future interest rate hikes might be.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 49.5 points, or 0.28 per cent, higher at 17,746.50, signaling that Dalal Street was headed for a positive start on Thursday.
Quarterly earnings today
Websol Energy System, Consolidated Construction Consortium and Crazy Infra & Infomedia are among companies that will announce their quarterly earnings today.
Tech View: Nifty50 may stay rangebound; 17,350 to offer support
Nifty50 on Wednesday rose for the second straight session and formed a small bullish candle on the daily chart. Analysts said the 50-pack index might trade range bound with a positive bias as long as it trades above the 17,350 level. A fall below this level may attract selling pressure, they said.
Oil prices rise on possible OPEC supply cuts
Oil prices rose in early Asian trade on Thursday after Saudi Arabia suggested the Organization of the Petroleum Exporting Countries could consider cutting output, though bearish economic signals from central bankers and falling equities weighed.
Tokyo shares open higher after US gains
Tokyo stocks opened higher Thursday, tracking overnight US gains ahead of a meeting of global central bankers that may offer clues about the future pace of interest rate hikes. The benchmark Nikkei 225 index added 0.21 percent, or 58.92 points, at 28,372.39 while the broader Topix index rose 0.18 percent, or 3.57 points, to 1,970.75.
Wall Street ends higher, with all eyes on Jackson Hole
Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the U.S. Federal Reserve’s Jackson Hole conference this week.
Rupee slips 3 paise to 79.86 against US dollar
The rupee consolidated in a narrow range and depreciated 3 paise to close at 79.86 against the US dollar on Wednesday. At the interbank foreign exchange market, the domestic currency opened at 79.84 per dollar. It hovered in a range of 79.68 to 79.87 during the session.
Sensex, Nifty on Wednesday
The 30-share pack Sensex rose 54.13 points but managed to end the session above the 59,000 mark. Its broader peer, Nifty50, advanced 27.45 points to top 17,600 level.
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