Stock Market LIVE: Sensex climbs 300 pts, Nifty tops 18,500; IT, Bank shine

Byju’s creditors seek quicker part-payment of $1.2 billion loan

A group of creditors to Byju’s, India’s most valuable startup, has asked the company to immediately repay part of a $1.2 billion loan they recently bought into as they renegotiate terms of the debt, according to people familiar with the matter.

The lenders have hired Houlihan Lokey Inc. to advise them on amending covenants after the edtech titan breached terms, including a September deadline for filing its results for the year ended March 31, 2022, the people said, asking not to be identified as the information isn’t public. Rothschild & Co. is representing Byju’s in the talks, they said. (Read More)

‘Tough to predict the future’: Google CEO Sundar Pichai on possible layoffs

Google can likely be the next tech giant to lay off employees after CEO Sundar Pichai hinted at possible cuts. Tech industry saw thousands of layoffs from big tech giants including Meta, Twitter, Amazon, Microsoft.

Recently, during an all-hands meeting, when employees asked CEO Sundar Pichai about layoffs, he said, it is tough to predict the future, as reported by Business Insider. He further added that he can’t honestly make forward-looking commitments about the same. (Read More)

Bajaj Finance leads the market surge with a gain of 2%

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Sula Vineyards IPO: Subscription status and latest GMP on Day 2 of bidding

he initial public offer (IPO) of Sula Vineyards Ltd opened for subscription on 12th December 2022 and it will remain open for bidders till 14th December 2022. By 10:44 AM on day two of bidding, Sula Vineyards IPO subscription status suggests that the public issue has been subscribed 0.35 times whereas its retail portion has been subscribed 0.61 times. The public offer has ben subscribed to 0.21 times in the NII category.

After a tepid response by investors, grey market sentiments have gone down after climbing above ₹55 levels on weekend. According to market observers, shares of Sula Vineyards Ltd are available at a premium of ₹31 in grey market today. The Grey market premium (GMP) of Sula Vineyards IPO was ₹34 on day one of bidding. So, after a weak response by investors, Sula Vineyards IPO GMP today has gone down by ₹3 in comparison to yesterday’s GMP. (Read More)

How HDFC, HDFC Bank merger will shake up India’s debt market

The consolidation of Housing Development Finance Corp. and unit HDFC Bank Ltd. will create a more than $200 billion financial services behemoth, and the parent will be able to tap the bank’s deposits to grow, rather than pile on more debt. That’s not all bad for India’s bond world as the hole created by the shadow lender may let new borrowers sell notes, helping India deepen its debt market.

The shadow lender is India’s biggest bond seller in 2022, with its issuance accounting for 7.7% of the country’s total issuance volume this year, higher than an average of about 6% in the last 10 years, Bloomberg-compiled data show. The merged entity will be a bank and is still likely to offer notes when needed to boost its capital buffers and fund infrastructure projects. (Full Story)

Bank indices climb, especially the PSU Bank index, with all the stocks in the index in green

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Rupee declines 20 paise to 82.71 against US dollar in early trade

The rupee depreciated 20 paise to 82.71 against the US dollar in early trade on Tuesday due to unabated foreign fund outflows from domestic capital markets.

However, a positive trend in equity markets and a weak dollar overseas capped the rupee’s fall, forex traders said.

Investors remained in risk-off mode ahead of the US inflation data release and Federal Reserve decision on interest rates slated to be announced later this week, they added.

At the interbank foreign exchange, the domestic unit opened weak at 82.63 against the dollar, then lost further ground to 82.71, registering a decline of 20 paise over its previous close. (PTI)

India bond yields fall but sticky core inflation limits gains

Indian government bond yields fell today after domestic inflation for November eased within the Reserve Bank of India’s target range for the first time this year. The benchmark 10-year yield fell to 7.258%, after settling at 7.2938% on Monday. Bond yields had risen 10 basis points in previous six sessions. On the back of a moderation in food prices, data released on Monday showed retail inflation rose lower-than-expected 5.88% in November, from 6.77% in the previous month. In comparison, analysts had expected the reading at 6.40%.

Bond traders now await US inflation data due later in the day and the Federal Reserve policy decision on Wednesday. The Fed is expected to hike its interest rate by 50 basis points, after raising the same by 375 bps since March. (Read More)

UPL sheds almost a per cent and one of the biggest laggards

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Paytm shares rally ahead of buyback proposal. What to expect?

Bulls flooded over India’s digital payments giant Paytm stock in the early session of Tuesday as investors keenly await the details of the buyback proposal. The company’s board of directors is scheduled to meet today to consider the proposal. The buyback plan is expected to ease the looming concerns in Paytm going forward. The company’s management expects the buyback to benefit its shareholders. On the other hand, the stock also picked up after continuing to record healthy growth in payments and loan distributions even in the first two months of the third quarter for fiscal FY23. (Read More)

Multibagger stock becomes 6 times in 15 months, announces stock split

The board of directors of small-cap company Servotech Power Systems Ltd has considered and approved a stock split in a 1:5 ratio. In its latest communication with the Indian bourse, the inverter maker company said that the company board has approved a stock subdivision of one equity share with a face value of ₹10 to equity shares with a face value of ₹2 each.

The NSE SME stock was launched at ₹31 apiece in 2017 and today this multibagger SME stock is quoting ₹162 per equity share, which is around 5 times its issue price. So, the SME stock has delivered a whopping return to its IPO allottees including those shareholders who failed to get company shares during the allotment process. (Read More)

Auto index off to a strong start with most stocks trading in green in the morning

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Japan’s Nikkei hits 2-wk high as mood improves before U.S. CPI, Fed meet

Japan’s Nikkei share average rose on Tuesday, briefly topping the psychologically key 28,000 level for the first time since the start of the month, as investors readied for key U.S. inflation data and the Federal Reserve’s policy decision.

The Nikkei opened brightly, hitting a high of 28,116.56 – a level not seen since Dec. 1 – but then gradually pared those gains to close the morning session 0.37% higher at 27,946.09.

The broader Topix added 0.52% to 1,967.48.

The advance followed strong gains on Wall Street overnight, with the S&P 500 rallying 1.43%. (Reuters)

ONGC gains in early trading; adds 1%

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FTX founder Sam Bankman-Fried arrested in the Bahamas

The former CEO of failed crypto firm FTX Sam Bankman-Fried has been arrested in the Bahamas at the request of the U.S. government, the U.S. attorney’s office in New York said Monday.

Bankman-Fried is under criminal investigation by U.S. and Bahamian authorities following the collapse last month of FTX. The firm filed for bankruptcy on Nov. 11, when it ran out of money after the cryptocurrency equivalent of a bank run. (Read More)

Indices open marginally in green with Sensex and Nifty gaining 100 and 30 pts, respectively

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Reliance Securities Stock in Focus for today: RK Forgings

STOCK IN FOCUS

RK Forgings (CMP 244): Considering the better business traction, healthy automobile demand outlook, new order wins, strong margin territory and CV upcycle, and healthy margins we have BUY on RMKF with a TP of Rs260, valuing the stock at a P/E multiple of 13.5x FY24E earnings.

Intraday Picks

BRITANNIA (PREVIOUS CLOSE: 4,433) BUY

For today’s trade, long position can be initiated in the range of Rs4,415-

4,390 for the target of Rs4,490 with a strict stop loss of Rs4,360.

IRCTC (PREVIOUS CLOSE: 724) BUY

For today’s trade, long position can be initiated in the range of Rs721-717

for the target of Rs738 with a strict stop loss of Rs707.

SRF (PREVIOUS CLOSE: 2,336) SELL

For today’s trade, short position can be initiated in the range of Rs2,344-

2,360 for the target of Rs2,260 with a strict stop loss of Rs2,380.

Sensex jumps at the preopen session; Paytm, Dalmia, ICICI Bank in focus today

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Geojit Financial Services on today’s market: Since there is no room for further PE expansion, this will put a cap on the market rally

Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: The two macroeconomic data which came yesterday have significant implications for the market. The CPI inflation for November at 5.88 % is below the RBI’s upper tolerance limit. This is good news. But the bad news is that the Index of Industrial Production (IIP) shows a contraction of 4 % in October. Taken together these two macro data suggest that the MPC is likely to refrain from further rate hikes. Even though this is a market, positive weakness in manufacturing suggests that it can impact corporate earnings, going forward. Since there is no room for further PE expansion, this will put a cap on the market rally. In the very near term, however, the market will be swayed by the US inflation data due today and the Fed action tomorrow. US inflation is likely to trend down lifting market sentiments.

Hurun Global 500 List 2022: India jumps on 5th position as 20 companies feature in world’s valuable list

India now ranks at Number 5 as 20 Indian companies feature in 500 most valuable ones in the world, as per the 2022 Hurun Global list.

India rose from the 9th rank to 5th rank with 20 companies featured in the list. Eleven of these 20 companies are based in Mumbai, 4 in Ahmedabad and one in each of Noida, New Delhi, Bengaluru and Kolkata.

With $202 billion, energy giant Reliance Industries is the most valuable company ranked at followed by Tata Consultancy Services with $139 billion valuation and HDFC Bank with $97 billion valuation. (Read More)

₹11 to ₹120: Multibagger penny stock gives 1100% return in 10 years

Shri Keshav Cements And Infra shares as the small-cap stock has surged from around ₹11 to ₹120 apiece levels in the last one decade, delivering to the tune of 1100 per cent return to its positional investors. The stock has been trading sideways for the last one month, but in year-to-date (YTD) time, it has doubled its shareholders’ money by delivering more than 100 per cent return in 2022.

The BSE listed stock has remained sideways for last one month but in last six months, it has risen from around ₹108 to ₹120 apiece levels, delivering around 12 per cent return in this time. In YTD time, this multibagger small-cap stock has surged from around ₹60 to ₹120 apiece levels, doubling investors money in less than one year time. (Read More)

Stocks to Watch: Paytm, Dalmia, Jaypee, ICICI Bank, Tata Motors, HCL Tech, Kirloskar Brothers, Macrotech Developers, BGR Energy Systems, Godrej Agrovet, HCL Tech and HOEC

NSE maintains Delta Corp, Bhel, Gujarat Narmada Valley Fertilizers & Chemicals, and Punjab National Bank stocks on the list of banned securities under the F&O segment for Tuesday trading as they have crossed 95% of the market-wide position limit. (Read More)

BGR Energy Systems bags orders worth ₹330 crore from India Oil

BGR Energy Systems on Monday said it has bagged orders worth ₹330 crore from Indian Oil Corporation Ltd for civil and structural works at Panipat Refinery Project Complex.

The contract is valued at ₹330 crore excluding GST (Goods and Services Tax) and the contract completion period is 18 months, according to a regulatory filing.

The company has secured orders from Indian Oil Corporation Ltd for construction of civil and structural works in Panipat, Haryana, the filing added. (PTI)

Oil up $2/bbl on supply risks amid ongoing Keystone outage

Oil prices settled up about $2 a barrel on Monday on supply jitters, as a key pipeline supplying the United States closed and Russia threatened a production cut even as China’s loosening COVID-19 restrictions bolstered the fuel demand outlook. Brent crude futures settled at $77.99 a barrel, gaining $1.89 or 2.5%. U.S. West Texas Intermediate crude settled at $73.17 a barrel, rising $2.15, or 3%. (Read More)

ICICI Bank raises ₹5,000 crore via bonds

Private sector ICICI Bank on Monday said it has raised ₹5,000 crore through bonds to fund business growth.

The bank has allotted 50,000 senior unsecured redeemable long-term bonds in the nature of debentures aggregating to ₹5,000 crore on a private placement basis, the date of the allotment being December 12, 2022, it said in a regulatory filing.

The bonds are redeemable at the end of 7 years (redemption date being December 12, 2029), it said.

There are no special rights or privileges attached to the bonds, it added. (PTI)

Tata Motors approves partial divestment possibility in TTL

Tata Motors’ board has accorded in -the principle to the company to consider partial divestment of its stake in Tata Technologies, which is due to go public In the current fiscal year (FY23) .

The Company said in the filing that,” …it will make further announcements of all material developments relating to IPO, as and when required, as per SEBI LODR Regulations and other applicable laws.”

TTL’s IPO makes it the first time in 18 years for a Tata Group entity to list, after TCS’ public offering in 2004. (Read More)

Dalmia Bharat to buy Jaypee’s cement assets at ₹5,666 cr enterprise value

Debt-laden Jaypee Group has agreed to sell its cement business to Dalmia Cement (Bharat) Ltd at an enterprise value of ₹5,666 crore, the company said. Jaypee has been trying to reduce debt after State Bank of India initiated insolvency proceedings against it for failing to settle dues of ₹6,892 crore.

It has signed a binding framework agreement with Dalmia to sell its cement, clinker, and power plants, which have a cement capacity of 9.4 million tonnes per annum (mtpa), clinker capacity of 6.7 mt, and thermal power capacity of 280MW. “JAL, the flagship firm, is taking steps to reduce debt and repay lenders to meet commitments on a proactive basis,” said Manoj Gaur, executive chairman of JAL. “In this regard, JAL divested over 20 mtpa cement capacity in favour of UltraTech Cement in 2014 and 2017, while selling a controlling stake of over 2 mtpa cement capacity to Dalmia in 2015.” (Read More)

Buy or sell: Vaishali Parekh recommends 2 stocks to buy today — December 13

Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today. Here we list out full details below:

1] RCF: Buy at ₹135, target ₹141, stop loss ₹132; and

2] Apollo Hospitals: Buy at ₹4742, target ₹4850, stop loss ₹4680. (Read More)

Landmark Cars IPO opens today: GMP, review, other details. Apply or not?

The initial public offering (IPO) of Landmark Cars Limited is going to hit primary markets today and subscription for the public issue will remain open for bidders till 15th December 2022. The auto dealer company aims to raise 552 crore from its public offer out of which ₹402 crore is reserved for OFS (offer for sale). The auto company has fixed Landmark Cars IPO price band at ₹481 to ₹506 per equity share.

Meanwhile, shares of Landmark Cars Limited are available in the grey market. According to market observers, shares of Landmark Cars Limited are available at a premium of ₹31 in the grey market today. (Read More)

Kirloskar Brothers shareholders reject resolution of forensic audit

The shareholders of Kirloskar Brothers Ltd (KBL)have rejected a resolution pertaining to a forensic audit in the affairs of the company, a stock exchange filing said on Monday.

On December 8, Kirloskar Brothers Ltd has called for an extraordinary general meeting (EGM) of its shareholders to consider and approve forensic audit of the affairs of the company by an external agency 

As per the filing, 63.99% of the shareholders voted against the resolution while 36.01% were in favour of the resolution proposed by Kirloskar Industries Ltd. (Read More)

India’s retail inflation eases to within RBI target but industrial activity contracts

India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased sharply to an 11-month low of 5.88% on an annual basis in November from 6.77% in October 2022 amid cooling global commodity prices and higher borrowing costs. The number came within the Reserve Bank of India’s (RBI) tolerance band of 2-6% for the first time this year.

The Central Government has mandated the RBI to maintain retail inflation at 4% with a margin of 2% on either side for a five-year period ending March 2026.

Separately, the factory output, measured in terms of the Index of Industrial Production (IIP), contracted 4% in October, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed today.

“While the IIP posted a deeper-than-expected contraction, mirroring the anaemic performance of exports, this chiefly reflects holidays during the festive period. The YoY growth of most available high-frequency indicators improved in November 2022 relative to October 2022, partly reflecting the subdued base owing to the relatively late onset of the festive season in 2021 vis-à-vis 2022,” the ICRA Chief Economist said. (Read More)

Wall Street rises on Monday ahead of year’s last barrage of rate hikes

Stocks closed higher Monday as Wall Street kicked off a busy week when central banks are likely to unload the year’s final barrage of interest-rate hikes meant to drive down the world’s painfully high inflation.

The S&P 500 rallied 1.4%, trimming its loss for the year to 16.3%. The Dow Jones Industrial Average rose 1.6% and the Nasdaq composite gained 1.3%. Small company stocks also rose, pushing the Russell 2000 index 1.2% higher. The indexes are coming off their first weekly loss in three weeks.

The gains were widespread, with more than 90% of stocks in the benchmark S&P 500 index closing higher. Treasury yields rose broadly.

The market rally comes ahead of a key inflation report on Tuesday and a meeting of policymakers at the Federal Reserve, after which investors expect the Fed to announce Wednesday its last rate hike of the year following a blitzkrieg that began in March. (AP)