Investors can take a breather from future interest hike worries as Fed’s November meeting minutes showed interest rate hikes may slow soon. Other global indicators too mostly skewed on the positive side.
Realty index under pressure amidst an otherwise bright day
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Kotak Securities Ltd on Commodities Market – Gold and Crude
Ravindra V.Rao, CMT, EPAT VP-Head Commodity Research Kotak Securities Ltd on:
Gold: COMEX Gold trades higher by 0.60% at $1756/oz as dollar fell after the release of FOMC meeting minutes on Wednesday. The minutes were out yesterday and as expected it showed majority of the policymakers were with the view of slower rate hikes as the aggressive stance is impacting the economic growth.US Dollar index closed near day low of 106.03, a fall by more than 1%. Although the minutes indicated the end of jumbo rate hikes, the policy makers were uncertain on when will be the end point of the rate hikes. Smaller rate hikes by Fed is positive for precious metals especially gold which had witnessed deep corrections since Fed started the jumbo rate hikes. On the price front after a doji candlestick formation on Tuesday a high wave candlestick has been formed indicating start of bullish momentum after a brief correction. Support remains near $1740-1735/oz zone which needs to penetrated on closing and sustaining basis. Till then there is good probability of a recovery back to $1762/oz followed by $1778/oz.
Crude: WTI Crude oil trades flat near $77.80/bbl after a near 4% fall in the previous session. Price ap on Russian oil by G7 above the current market level is putting a downward pressure on price. As per the EU official they are considering a price cap on Russian oil between $65 to $70 which is around the level Russian crude is trading at. However, Russia has indicated that it will pull off the exports to nations who are joining the price cap. This will eventually be bullish for prices as supply tightness might trigger buying. Additionally, oil price also got a hit amid rise in product inventories as indicated by the EIA inventory report. On the positive side crude oil got some support from US Dollar weakness after the release of FOMC minutes. On the price front WTI crude oil didn’t sustain above $82/bbl level which was the resistance. However, the correction in oil prices might deepen further only if it closes and sustains below $75/bbl, the recent low which is also a double / identical bottom. Till then a range move expected between $82-$76/bbl. Bulls need to close it above $82 if they want to take it to $85//bbl.
Apollo Hospitals stock keeps its green run; adds more than 3%
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Rupee gains 26 paise to 81.67 against US dollar
The rupee appreciated 26 paise to 81.67 against the US dollar in early trade on Thursday as the American currency retreated from its elevated levels.
At the interbank foreign exchange, the domestic unit opened at 81.72 against the dollar, then gained ground to touch 81.67, registering a rise of 26 paise over its previous close.
The rupee has strengthened in offshore trading on broad-based dollar weakness. It is likely to trade in a range of 81.55-81.85 with sideways price action, IFA Global Research Academy said in a research note.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.41 per cent to 105.63, post the weak US data and dovish Fed minutes. (PTI)
China stocks fall as COVID cases hit record high
China stocks fell on Thursday, as concerns over record high domestic daily COVID-19 cases overshadowed optimism from fresh economic stimulus, while Hong Kong shares tracked Asian markets higher amid hopes that the pace of U.S. rate hikes will slow.
** The CSI300 index fell 0.3% by the lunch break, while the Shanghai Composite Index lost 0.1%. Hong Kong benchmark Hang Seng rose 0.5%.
** Rising coronavirus infections in major cities including Beijing, Shanghai and Guangzhou dim growth prospects, even as Beijing rolled out a series of policies to support the troubled property sector, and flagged plans to cut banks’ reserve requirement ratio (RRR) to aid the economy.
** China on Wednesday reported 31,444 new local COVID cases for Nov. 23, its highest daily number since the start of the pandemic nearly three years ago. Chinese cities imposed more curbs to rein in the pandemic. (Reuters)
Ashika Stock Broking on today’s market: The psychological level of 18000 would be the trend deciding level for the market.
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty ended with a bearish candle as the close was lower than the open on the daily chart however presence on a higher high-low continues to have a bullish overtone in the market. It is at that phase where a prolonged consolidation might be in the making and forming a higher base, setting itself equipped to eye the all-time high of 18600 in the near term. Though it can be established that the market has halted its slide taking support from its 20dma and the lower area of the gap up the region and 18050-18100 might be the elevated bottom for the market followed by 17950 which coincides with 23.6% retracement of the entire rally since Oct’22. However, the psychological level of 18000 would be the trend-deciding level for the market. A positive stance in the market would remain due to sharp reversals in the Dollar index, US yields have helped to taper down anxiety around further aggressive rate hikes and drop in crude oil prices which is supportive for Indian Equities. Against that backdrop, the Index has also cooled off from its overbought price reading presently trading above the 60-level mark (14-period RSI). During the day, Nifty is likely to open on a positive note as overnight US Market lifted since Fed officials see smaller rate hikes coming ‘soon,’. From this perspective, it would be wiser to hunt for the lower level at 18220-18265 for initiating long positions for an upside target of 18450 followed by 18600.
IT Index among biggest gainers on Thursday, adds more than 0.5%
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ZIM Laboratories to list on NSE on Friday
Drug delivery solution provider ZIM Laboratories Ltd on Wednesday said it is planning to get listed on the National Stock Exchange of India (NSE) on November 25.
ZIM Laboratories, already listed on the BSE since June 2018, will now extend its listing to the NSE, the company said in a statement.
As of date, the company said, it has provided over 85 per cent return to its investors from the listing price.
According to the September 2022 shareholding pattern available with the BSE, the company’s promoters own a 33.26 per cent stake in the firm, of which, Dr Anwar Daud, Chairman and Managing Director, holds a 27.37 per cent stake and Mathew Cyriac, Executive Chairman, Florintree Advisors, as an investor owns 21.86 per cent. (PTI)
Adani Enterprises remains under pressure; sheds 1%
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Rustomjee Group firm Keystone Realtors shares list at premium over IPO issue price
Shares of Keystone Realtors Private Ltd made a market debut on Wednesday with the stock listing at ₹555 apiece on the NSE, a premium of more than 2% as compared to its IPO issue price of ₹541 per share. On the BSE, Keystone Realtors shares started trading at ₹555 apiece.
Keystone Realtors, which sells properties under the brand ‘Rustomjee’, saw its initial public offering (IPO) receive 2 times subscription on the last day of offer that was open from Monday, November 14, 2022 to Wednesday, November 16, 2022. The public issue issue got bids for 1,73,72,367 shares against 86,47,858 shares on offer. (Read More)
PSU Bank index zooms once again; gains more than a per cent in early trading with all stocks in green
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EU Demands Derivatives Clearing Reform to Reduce Reliance on UK
The EU will require derivatives traders to use accounts at clearing houses in the bloc for some transactions, under plans aimed at boosting Europe’s capital markets.
Certain banks would need to clear a minimum amount of business using active accounts in EU-based clearing houses, according to an EU official speaking on condition of anonymity. The European Commission is expected to outline the measures next month.
The proposed shake-up — first reported by the Financial Times on Wednesday — is aimed at reducing the EU’s reliance on the UK’s financial services sector after Brexit. The demands would apply to derivatives, and could include credit swaps and futures. (Bloomberg)
Tata Consumer shines in early trading, gains more than 2% amidst reports of acquisition of Bisleri
Tata Consumer Products Ltd will buy Bisleri International for up to ₹7000 crore, the Economic Times newspaper reported on Thursday, citing the packaged water maker’s chairman Ramesh Chauhan. Tata Consumer Products and Bisleri did not respond to Reuters requests for comment. Tata Consumer was the top gainer among Nifty50 stocks today, rising over 2.5% in early trade.
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Dharmaj Crop Guard IPO: GMP rises ahead of subscription opening
Agrochemical company Dharmaj Crop Guard’s initial share-sale will open for public subscription on November 28 and conclude on November 30. The company has fixed a price band of ₹216–237 a share for its ₹251-crore initial public offering (IPO). At the upper end of the price band, the Ahmedabad-based company would fetch ₹251 crore.
As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹45 in the grey market today, up from ₹25 in the previous session. The shares of the company are expected to list on the stock exchanges BSE and NSE on Thursday, December 8, 2022. (Read More)
Sensex and Nifty open in green with a gain of around 100 and 40 points, respectively, on Thursday
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India to launch free trade pact negotiation with Gulf Cooperation Council today
In a bid to promote commerce and investment between the two regions, India and the Gulf Cooperation Council (GCC) will announce the launch of negotiations for a free trade agreement on Thursday. GCC is a union of six countries in the Gulf region — Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain. (Read More)
India’s Pharma exports grow by 138 pc since 2013-14
India’s pharma exports have increased 138 per cent in April-October 2022-23 compared to the same period of 2013-14 when the country became the pharmacy for the world.
India’s pharma exports witnessed a growth of 138 per cent since April-October 2013-14, from ₹37,987.68 crores in 2013-14 to ₹90,324.23 crores in 2021-22.
Union Health Minister Mansukh Mandaviya in a tweet attaching an infographic of India’s pharmaceutical exports over these years said India’s medicine exports are heading the world. (ANI)
Sensex is in the flat territory at preopen; Keystone Realtors to debut at the bourses today
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New rules for social media influencers to be out in December
The Union government is preparing to release guidelines governing social media influencers next month, promising stiff fines for those who fail to disclose their brand partnerships.
The guidelines, similar to the rules released in June to prevent misleading advertisements, are already in the final stage, a person aware of the matter said.
“These days, young people make purchase decisions based on social media content put out by influencers. Unlike in the case of an actor endorsing a product in a television ad, it is difficult to figure out if the influencers actually use the products or not. Sometimes, people may not know the influencer, unlike in the case of actors; so, disclosure is going to be very important,” the person cited above said on the condition of anonymity. (Read More)
Apple supplier Foxconn apologises for hiring blunder at COVID-hit China plant
Apple’s major supplier Foxconn said on Thursday a “technical error” occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest.
Men smashed surveillance cameras and windows as hundreds of workers protested at the plant in Zhengzhou city on Wednesday, in rare scenes of open dissent in China sparked by claims of overdue pay and frustration over severe COVID-19 restrictions.
Workers said on videos circulated on social media that they had been informed that Foxconn intended to delay bonus payments. Some workers also complained they were forced to share dormitories with colleagues who had tested positive for COVID.
“Our team has been looking into the matter and discovered a technical error occurred during the onboarding process,” Foxconn said in a statement.
“We apologize for an input error in the computer system and guarantee that the actual pay is the same as agreed and the official recruitment posters.” (Reuters)
Geojit Financial Services on today’s market: In India, macro news confirms the resilience of the Indian economy.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “The US market construct of ‘ rising equity-falling bond yields-falling dollar’ continues favouring the bulls. In addition to this favourable global cues, in India, the steadily falling crude is another positive. The FOMC minutes indicate slowing of the rate hikes, going forward. Consequently, the 10-year yield fell to 3.69% and the dollar index slipped to 106. So long as this trend continues, bears will be on the back foot. In India macro news confirms the resilience of the Indian economy. Investment is gaining momentum. The latest RBI data shows credit growth at an impressive 17% YoY. This is good news for the banking and capital goods stocks.”
Cryptocurrency prices today steady as Bitcoin trades above $16,000. Check latest rates
Crypto markets steadied as Bitcoin’s price traded above the $16,000 mark. The world’s largest cryptocurrency by market value is down about 70% since the same time last year, when the digital token was trading just below almost $69,000, its all-time high level in November 2021.
The world’s largest and most popular digital token Bitcoin’s price today was trading over a per cent higher at $16,682. On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, also rose by more than 3% to $1,200. The global crypto market cap today remained below the $1 trillion mark, even as it was over 4% higher in the last 24 hours to $873 billion, as per the data by CoinGecko. (Read More)
Stock to Watch: Keystone Realtors, Adani Transmission, Indigo, HFCL, SBI, HGC, ITC, M&M Financial Services, Shriram Transport Finance, Apollo Tyres
NSE has kept Punjab National Bank (PNB) on the list of banned securities under the F&O segment for Thursday trading as it has crossed 95% of the market-wide position limit (Read More)
Buy or sell: Vaishali Parekh suggests these 2 stocks to buy today
Sharing as the top picks for Thursday, Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today which are Cummins and Bank of Baroda.
Cummins: Buy CUMMINS, stop loss ₹1,335, target ₹1,410
Bank of Baroda: Buy BANK OF BARODA, stop loss ₹166, target ₹173 (Read More)
Adani follow-on public offering to fund green, digital businesses
Billionaire Gautam Adani’s flagship Adani Enterprises Ltd is planning a follow-on public offering (FPO) to finance the group’s expansion in green and digital businesses, three people aware of the development said. The board of the Adani-led firm will meet on Friday to finalize the fundraising.
Adani may raise ₹10,000-20,000 crore through the FPO, said one of the three people cited above, all of whom spoke on condition of anonymity. “The fundraising is aimed at two things. One, to mobilize funds for new businesses such as green hydrogen, data centres and renewables; and two, to improve the company’s float on stock exchanges by bringing in a wide set of new investors,” the person said. (Read More)
Lump sum flows into MF equity schemes lowest since November 2020
Lump sum inflows into the equity segment, excluding new fund offers (NFOs), stood at ₹17,900 crore in October, the lowest since November 2020, according to a report by Motilal Oswal Financial Services Ltd.
The slowdown has been on account of high net worth individuals (HNIs) waiting for a better entry point as the stock market nears the record high, weakness in inflows from rural customers, and reduced NFO activity in the equity segment, the report said.
According to Motilal Oswal Financial Services (MOFSL), redemptions in the equity segment have been steady. (Read More)
Keystone Realtors shares’ debut today: What to expect on listing day?
The shares of the company are expected to make their market debut on the stock exchanges BSE and NSE…
Read More: Stock Market LIVE: Sensex jumps 300 pts; Nifty up 100 pts; PSU Bank shines