Stock Market LIVE: Sensex flat, Nifty holds 18100; PSU Bank shines, IT drags

Ashish Chugh buys 2 lakh shares of Kapil Raj Finance

On Tuesday, Delhi-based veteran investor Ashish Chugh bought 2,00,000 shares of Kapil Raj Finance Ltd at a price of ₹12 apiece in a bulk deal. Ashish Chugh is an independent investor known for his profit-generating picks in the market, he began his career in 2000 as an investor after earning degrees in electronics engineering. Prior to leaving his family business after a very brief tenure, he also earned an MBA. (Read More)

IT index comes under pressure in today’s session; most stocks in red

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RVNL jumps on order from Maldives 

Shares of Rail Vikas Nigam (RVNL) traded higher on Wednesday after the company announced that it has been appointed the project implementation agency for development of the UTF Harbor Project in Maldives.

“This is a strategic project of the government and the cost is pegged at ₹1,544.60 crore,” said the company in an exchange notification.

Rupee trades flat against US dollar

The Indian rupee opened flat note against the US dollar on Wednesday amid rising crude oil prices and persistent foreign capital outflows.

Forex traders said a strengthening American currency and muted domestic equities weighed on the local unit and restricted the appreciation bias.

At the interbank foreign exchange, the domestic unit opened at 82.84 against the dollar, then fell to quote at 82.86, registering a rise of just 1 paisa over its previous close.

On Tuesday, the rupee closed at 82.87 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14 per cent to 104.32. (PTI)

Bajaj Finserv drags in today’s trading, sheds more than a per cent

Promoter Jamnalal Sons increased its stake in NBFC-giant Bajaj Finserv on Tuesday in a block deal. The promoter purchased equity shares to the tune of ₹100.41 crore in the open market. On the other hand, promoter Rishab Family Trust offloaded a portion of its shareholding held in the company. Bajaj Finserv stock closed on a flat note. As per the NSE data, Jamnalal Sons bought 6,52,000 equity shares in Bajaj Finserv at ₹1,540 apiece aggregating to ₹100.41 crore. On the other hand, Rishab Family Trust sold 6,52,000 equity shares at ₹1,540 apiece in the company.

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Geojit Financial Services outlook on Derivatives and USD-INR

Anand James – Chief Market Strategist at Geojit Financial Services:

Derivative:

Nifty weekly contract has highest open interest at 18,200 for Calls and 18,000 for Puts while monthly contracts have highest open interest at 18,200 for Calls and 18,000 for Puts. Highest new OI addition was seen at 18,600 for Calls and 18000 for Puts in weekly and at 18600 for Calls and 18,000 for Puts in monthly contracts. FIIs increased their future index long position holdings by -6.58%, increased future index shorts by -7.54% and in index options by -0.33% in Call longs, -0.43% in Call short, 2.43% in Put longs and 5.09% in Put shorts.

USD-INR outlook:

The spike above 82.75 forced us to abandon the downside plays, but directional moves did not set off as 82.84/88 continued to hold. While this is not a breakout level, breach of the same may encourage us to look for 83.25. We will continue to have the downside marker at 82.59.

ONGC shines in early trading, gains 1% 

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Japan’s Nikkei pressured by drop in chip stocks, China worries

Japanese stocks on Wednesday retreated from the one-week highs hit in the previous session, weighed down by an overnight drop in global semiconductor shares and lingering worries over China’s COVID-19 situation.

By mid-day, in thin year-end trading, the Nikkei Average was down 156.91 points, or 0.6%, at 26,290.96. Losses for the year so far are around 8.7%.

Traders said there was early selling of stocks after the Nasdaq Composite and the Philadelphia Semiconductor Index (SOX), which have a high proportion of high-tech stocks, fell on Tuesday.

Of the 33 industries on the Tokyo Stock Exchange, six sectors rose, including electricity and gas as well as insurance, while prices fell in 26 industries, including real estate and air transportation. (Reuters)

Active Covid cases in country rise to 3,468

India logged 188 new coronavirus infections, while the active cases increased to 3,468, according to the Union Health Ministry data updated on Wednesday.

The Covid case tally was recorded at 4.46 crore (4,46,77,647).

The death toll stands at 5,30,696, the data updated at 8 am stated.

The daily positivity rate was recorded at 0.14 per cent, while the weekly positivity was pegged at 0.18 per cent, the ministry said.

It said 1,34,995 tests for detection of Covid have been conducted in the last 24 hours.

The active cases comprise 0.01 per cent of the total infections, while the national COVID-19 recovery rate increased to 98.80 per cent, the ministry said. (PTI)

Consumer Durable index opens strong; adds a per cent with most stocks in green

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FTX customers file class action to lay claim to dwindling assets

FTX customers filed a class action lawsuit against the failed crypto exchange and its former top executives including Sam Bankman-Fried on Tuesday, seeking a declaration that the company’s holdings of digital assets belong to customers.

The lawsuit is the latest legal effort to lay claim to the dwindling assets of FTX, which is already feuding with liquidators in the Bahamas and Antigua as well as the bankruptcy estate of Blockfi, another failed crypto company.

FTX pledged to segregate customer accounts and instead allowed them to be misappropriated and therefore customers should be repaid first, according to the lawsuit filed in U.S. Bankruptcy Court in Delaware. (Reuters)

Powergrid Corporation starts on a strong note, gains more than a per cent

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Bitcoin, ether, other crypto prices today continue to decline. Check latest rates

Bitcoin price today continued to decline with the world’s largest and most popular digital token trading over a per cent lower at $16,647. The global cryptocurrency market cap today remained below the $1 trillion mark, as it was down in the last 24 hours to $839 billion, as per the data by CoinGecko.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, was almost down 2% at $1,197. Meanwhile, dogecoin price today was trading over 4% lower at $0.07 whereas Shiba Inu was down 2% at $0.000008. (Read More)

Indices open marginally in red with Sensex opening 150 pts lower and Nifty 50 pts

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DICGC settles claims worth ₹8,516 crore in FY22

The Deposit Insurance and Credit Guarantee Corporation (DICGC) settled claims of ₹8,516.6 crore in the last financial year and bulk of them were from customers of the Punjab and Maharashtra Co-operative (PMC) Bank, the Reserve Bank said on Tuesday.

An amount of ₹3,791.6 crore was provided to Unity Small Finance Bank for making payment to the depositors of the erstwhile PMC Bank, the Reserve Bank of India (RBI) said in Trends and Progress in Banking Report for FY22.

The total settlement amount includes claims settled with respect to 22 urban cooperative banks under the ‘All Inclusive Directions (AID)’ amounting to ₹3,457.4 crore, the report said. Main claims and supplementary claims in respect of 15 UCBs amounting to ₹1,225 crore were also settled.

The report said the financial performance of UCBs, which accounted for a bulk of the DICGC claims, showed an improvement in FY22 which was evident in their higher capital buffers, decline in gross non performing assets ratio and improved profitability indicators. (PTI)

Sensex remains flat with a slight tilt towards red at preopen; Coal India, Bajaj Finserv, RIL in focus

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A tough 2023 awaits Indian fintech startups as funding cools

India’s $50 billion fintech industry will face hurdles in the form of tougher regulatory scrutiny and tighter liquidity leading to higher cost of capital for some companies next year, Rakesh Pozhath, partner at consulting firm Bain & Company, said.

Investors into the country’s fintech space that has drawn heavyweights from Warren Buffett’s Berkshire Hathaway Inc. to Masayoshi Son’s SoftBank Group Corp., in the past few years, are getting more diligent as global financial conditions tighten. That has intensified the competition for capital, Pozhath said. (Read More)

Radiant Cash Management IPO: GMP, share allotment, listing date details

The initial public offer of Radiant Cash Management Services has subscribed just 53 per cent on the last day of subscription on Tuesday, December 27, 2022. The ₹388-crore initial share sale received bids for 1,45,98,150 shares against 2,74,29,925 shares on offer. The issue, which opened on December 23, had a price band of ₹94 to ₹99 a share for its ₹388-crore public offer.

The category meant for Qualified Institutional Buyers (QIBs) was fully subscribed, while the non-institutional investors portion received 66 per cent subscription and Retail Individual Investors (RIIs) 20 per cent. IIFL Securities, Motilal Oswal Investment Advisors and YES Securities were the managers to the offer. (Read More)

Reliance Securities Stock to Focus for Today: Engineers India

STOCK IN FOCUS

Engineers India (CMP 78): Considering its asset-light business model, strong clientele base, foray into newer segments and healthy execution track record, we have our BUY rating on ENGR, with a SOTP-based Target Price of Rs100.

Intraday Picks

ICICIBANK (PREVIOUS CLOSE: 901) BUY

For today’s trade, long position can be initiated in the range of Rs890-

895 for the target of Rs918 with a strict stop loss of Rs882.

TECHM (PREVIOUS CLOSE: 1,010) BUY

For today’s trade, long position can be initiated in the range of Rs995-

1003 for the target of Rs1030 with a strict stop loss of Rs985.

BRITANNIA (PREVIOUS CLOSE: 4,369) SELL

For today’s trade, long position can be initiated in the range of Rs4385-

4410 for the target of Rs4270 with a strict stop loss of Rs4450.

SVS Ventures IPO: SME issue to open on December 30

SME firm, SVS Ventures will launch its initial public offering on the last working day of 2022. The offer comprises the issuance of fresh equity – 56,22,000 shares – at an issue price of ₹20 each. The company aims to raise ₹1124.40 lakhs via the IPO route.

The issue will open on December 30, 2022, and is expected to close on January 4, 2023. The equity shares offered through this offering will be listed on the SME Platform of BSE.

The minimum trading lot size is 6,000 equity shares. The lot size is the minimum number of shares that have to be bought or sold by an investor to participate in an IPO. (Read More)

Stocks to Watch: Bajaj Finserv, Coal India, RIL, BPCL, IEX, Indowind, Punjab & Sind Bank, Kwality Pharma, Hariom Pipe, Suryoday SFB, and HPCL

NSE has kept Balrampur Chini Mills, Indiabulls Housing Finance, and Punjab National Bank on the list of banned securities under the F&O segment for Wednesday trading as they have crossed 95% of the market-wide position limit. (Read More)

INDIA BONDS-Bond yields may rise marginally tracking U.S. peers

Indian government bond yields could inch higher in early trades on Wednesday tracking a rise in U.S. yields, while trading volume is expected to remain tepid.

The benchmark 10-year yield is likely to move in a 7.29%-7.33% band, a trader with a private bank said. The yield ended lower at 7.3077% on Tuesday.

There may be an upward move of a couple of basis points (bps), but as has been the trend, there will be ranged trading and very low volume, the trader said.

U.S. Treasury prices dropped, with the 10-year yield rising to 3.86% earlier in the day as investors tried to assess the path of interest rate hikes from the Federal Reserve and China’s decision to scale back some COVID-19 restrictions. (Reuters)

Elin Electronics IPO: GMP as all eyes on shares listing after allotment

The Initial Public Offer (IPO) of electronics manufacturing services company Elin Electronics was subscribed 3.09 times on the last day of subscription that was open from Tuesday, December 20 till Thursday, December 22, 2022. The public issue received bids for 4,39,67,400 shares against 1,42,09,386 shares on offer.

As per market observers, Elin Electronics shares’ premium (GMP) have slipped to discount of ₹7 in the grey market today. The finalisation of the basis of share allotment of Elin Electronics IPO has been done. Now, the shares of the company are expected to make its market debut on stock exchanges next week on Friday, December 30, 2022. (Read More)

Direct retail flows into stock market plunge 64% in FY23

Direct investments by retail investors in equities has fallen in the current fiscal year from record levels in FY22 amid lower market returns, a rally in stocks under-owned by them and partly due to diversion into options, said equity analysts. However, they are divided on the prospects of retail inflows in FY24.

Retail inflow into NSE’s cash or secondary market stood at a net ₹37,400 crore in the eight months to November, down by 64% from ₹1.04 trillion in April-November of FY22, according to NSE data. Net value is the difference between buying and selling of equities. (Read More)

India, ADB sign USD 125 mln loan to improve urban services in Tamil Nadu

The Indian government and Asian Development Bank (ADB) on Tuesday signed a USD 125 million loan to develop climate-resilient sewage collection and treatment and drainage and water supply systems in three cities of Tamil Nadu.

The signatories to the loan for Tamil Nadu Urban Flagship Investment Program were Rajat Kumar Mishra, additional secretary, Department of Economic Affairs in the Ministry of Finance who signed for the government of India, and Hoe Yun Jeong, officer-in-charge of ADB’s India Resident Mission who signed for the ADB, the Ministry of Finance said in a statement.

“The financing is the third and the last tranche of the USD 500 million multi-tranche financing facility (MFF) for the Program approved by ADB in 2018 to build priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across 10 cities in the state. The tranche 3 loan covers Coimbatore, Madurai, and Thoothukudi,” it added. (ANI)

Direct retail flows into stock market plunge 64% in FY23

Direct investments by retail investors in equities has fallen in the current fiscal year from record levels in FY22 amid lower market returns, a rally in stocks under-owned by them and partly due to diversion into options, said equity analysts. However, they are divided on the prospects of retail inflows in FY24.

Retail inflow into NSE’s cash or secondary market stood at a net ₹37,400 crore in the eight months to November, down by 64% from ₹1.04 trillion in April-November of FY22, according to NSE data. Net value is the difference between buying and selling of equities. (Read More)

Coal India to meet 700 MT production target of FY23, says chairman

Coal India Chairman Pramod Agrawal on Tuesday exuded confidence that the PSU will achieve the production target of 700 million tonnes for the current financial year.

Coal India (CIL) accounts for over 80 per cent of the domestic coal output. “ I am confident…Coal India will achieve the 700 million tonne coal production target this financial year,” the chairman was quoted as saying in a statement.

Addressing virtually a team of CIL-arm MCL, Agrawal congratulated company officials for registering a growth of 15.9 per cent over the targeted production of coal, which is almost 19 million tonne. (PTI)

Tesla shares fall with mounting demand worries in China

Tesla Inc shares fell 11.4% on Tuesday after a Reuters report that Tesla was planning to run a reduced production schedule in January at its Shanghai plant sparked worries of a drop in demand in the world’s biggest car market. The stock, which fell to its lowest in more than two years and had its worst day in eight months, was the biggest drag on the benchmark S&P 500 index and the tech-heavy Nasdaq index.

It has lost more than half its value since the start of October as investors worry that Twitter was taking much of Chief Executive Elon Musk’s time while fretting about his stake sale in the electric-car maker. (Read More)

Promoter buys stake in Bajaj Finserv for ₹100.41 cr in block deal. Details here

Promoter Jamnalal Sons increased its stake in NBFC-giant Bajaj Finserv on Tuesday in a block deal. The promoter purchased equity shares to the tune of ₹100.41 crore in the open market. On the other hand, promoter Rishab Family Trust offloaded a portion of its shareholding held in the company. Bajaj Finserv stock closed on a flat note.

On NSE, Bajaj Finserv shares closed at ₹1,539 apiece up by 0.26%. The stock witnessed a volume of 11,02,198 equity shares exchanging hands on December 27th.

As per the NSE data, Jamnalal Sons bought 6,52,000 equity shares in Bajaj Finserv at ₹1,540 apiece aggregating to ₹100.41 crore. On the other hand, Rishab Family Trust sold 6,52,000 equity shares at ₹1,540 apiece in the company. (Read More)

Rupee falls 25 paise against US dollar on forex outflows

The rupee declined 25 paise to close at 82.90 against the US dollar on Tuesday, as month-end dollar demand from importers and significant foreign fund outflows sapped investor appetite.

Moreover, the risk-off mood among investors and firm crude oil prices in the international market weighed on the rupee, forex dealers said.

At the interbank foreign exchange market, the rupee opened lower at 82.71 against the greenback and witnessed an intraday high of 82.69 and a low of 82.90.

It finally settled at 82.90, down 25 paise over its previous close of 82.65.

“Month-end dollar demand from oil importers and year-end rebalancing foreign fund outflows weighed on the Indian rupee in Tuesday’s trade as it surrendered Monday’s gain. The surge in crude and precious metal prices also weighed on the local unit,” said Dilip Parmar, Research Analyst, HDFC Securities. (PTI)

Parle Products to expand premium products range

Biscuits maker Parle Products is set to increase the share of its premium portfolio to 20-25% with new launches within two-three years and expand its distribution for brands such as Milano, Nutricrunch and Hide & Seek.

“Premium is doing well for us. There’s a good range that we have launched a few years ago and we’re looking at ramping our distribution to make it available to the remotest parts of India. Currently, it is available in most big cities or almost the entire urban India. Now, the idea is to go down in suburban semi-urban areas, as well as through smaller packs,” said Mayank Shah, senior category head, Parle Products Pvt. Ltd. (Read More)

Banks need robust credit appraisal policies to limit risk: RBI

Indian banks need to ensure they have robust due diligence and credit appraisal mechanisms in place to limit credit risk, given that uncertainties in the current macroeconomic conditions could be challenging, a Reserve Bank of India report said.

“If downside risks materialize, asset quality could be affected. Hence, slippages in restructured assets need to be monitored closely. Timely resolution of stressed assets is essential to prevent asset value depletion,” RBI’s Report on Trend and Progress of Banking in India 2021-22 said on Tuesday. (Read More)

Stocks close lower on Wall Street on Wednesday, adding to recent losses

Stocks closed lower Tuesday, adding to the market’s recent losses as Wall Street counts down its final days of a painful year for investors.

The S&P 500 fell 0.4%, while the Nasdaq composite finished 1.4% lower. Both indexes were coming off their third straight weekly loss. The Dow Jones Industrial Average eked out a 0.1% gain.

Trading was mostly muted as U.S. markets reopened following the long holiday weekend. Markets in Asia and Europe mostly rose after China said it will drop nearly all COVID-19 travel restrictions next month.

The move could ease some supply chain challenges for companies that source goods from China, but it could also lead to more spending by consumers there, which could fuel inflation, said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. (AP)