Sensex, Nifty closed over 0.25% higher on Wednesday. June WPI inflation came in at 12.07% compared to 12.94% in May. Fuel, metals and food prices contributed to the high figure. The IT sector outperformed led by Mindtree’s Q1 positive earnings and ahead of Infosys’ earnings due after market close today. Asian stocks closed lower on Wednesday after US inflation registered its highest surge in 13 years, stoking fears that the Fed may exit markets earlier than planned previously.
Gold gains marginally; silver lower by ₹399
Gold in the national capital on Wednesday was marginally up by ₹23 to ₹47,024 per 10 gm, according to HDFC Securities. In the previous trade, the precious metal had closed at ₹47,001 per 10 gm. Silver, however, dipped ₹399 to ₹67,663 per kg, from ₹68,062 per kg in the previous trade. In the international market, gold was trading higher at $1,812 per ounce and silver was flat at $26.02 per ounce.
Rupee falls 10 paise to close at 74.59 (provisional) against US dollar
The Sensex closed at 52,904.05, up 134.32 points, or 0.25%, while Nifty was at 15,853.95, up 41.60 points, or 0.26%. PSU banks ended lower. All eyes will be on Infosys’ Q1 result due later today. On the 30-share Sensex, Tech Mahindra, HCL tech, Infosys, and 12 other stocks closed in green, while Maruti, HUL, Nestle India, 12 other stocks closed in red.
Thailand’s oil major PTT Group buys stake in Avaada Energy
Thailand energy major PTT Group’s acquisition of 41.6% stake in Avaada Energy Pvt. Ltd for about $454 million finally grants the state-owned firm an India entry after unsuccessful attempts earlier. The announcement of largest-ever investment from Thailand into India was made by PTT’s unit, Global Power Synergy Public Co. Ltd, on Tuesday. Global Power Synergy said its subsidiary Global Renewable Synergy Company Ltd (GRSC) had completed the acquisition in Avaada Energy controlled by entrepreneur Vineet Mittal. The deal reflects the growing interest of global oil and gas majors in India’s emerging green economy. (Read here)
Maha EV Policy to accelerate electric vehicle adoption: RattanIndia
RattanIndia-backed EV maker Revolt Motors has welcomed the new Maharashtra Electric Vehicle Policy, saying its implementation, in addition to the FAME II incentives, will accelerate the process of EV adoption in the state.
Moreover, the increased subsidy being offered under the new scheme will make EV motorcycles more affordable and accessible to consumers, Revolt Motors said on Wednesday. Separately, credit ratings agency ICRA said that given the state’s sizeable contribution to overall vehicle sales in India, the policy’s allocation towards demand incentive (including early-bird discount) is a major positive. (PTI)
Mahindra Electric names Suman Mishra as CEO
Mahindra Electric Mobility Ltd (MEML), a part of the Mahindra Group, on Wednesday said it has appointed Suman Mishra as its Chief Executive with immediate effect. Mishra, who will also be the Chief Executive designate for the Last Mile Mobility business (LMM), takes over from Mahesh Babu who has decided to pursue opportunities outside of Mahindra Group. Mishra is part of the Mahindra group and was working as Senior Vice President – Business Transformation, Insights and Analytics (BIA) for the Automotive Sector. (PTI)
Maruti lines up ₹18,000 cr investment for new manufacturing plant in Haryana
The country’s largest carmaker Maruti Suzuki India (MSI) is planning to invest around ₹18,000 crore on a new manufacturing facility in Haryana, as per a top company official. The new plant would replace the company’s Gurugram-based facility and is expected to have an installed production capacity of 7.5-10 lakh units per annum. While confirming the ₹18,000 crore investment plan, MSI Chairman RC Bhargava told PTI that the company had always planned to shift the Gurugram facility to a nearby location.
AI startup Fractal Analytics India weighs IPO as pandemic fuels growth
Fractal Analytics Inc., a provider of artificial intelligence and analytics solutions to global companies, is exploring an initial public offering to fuel its growth as the pandemic helps to boost demand for its services. Besides weighing an IPO, Fractal is assessing interest from investors valuing the company at significantly more than $1 billion, Srikanth Velamakanni, co-founder and chief executive officer, said in an interview via video on Tuesday. It has received $325 million in funding so far from investors including Apax Partners. (Bloomberg)
Top Nifty gainers and losers at this hour
Welspun Corp. Tata Steel lead gains
NSEIT buys majority stake in Cloudxchange
NSEIT, a wholly owned unit of National Stock Exchange, has acquired a majority stake in Cloudxchange.io for an undisclosed amount. Cloudxchange.io is a leading Multi-Cloud Managed Services Provider and established player in cloud-based services. After the cybersecurity segment, NSEIT is building expertise in cloud services. “Cloudxchange.io augments NSEIT’s vision of becoming a cloud native, niche & innovative digital solution provider for enterprises. The addition of new age cloud offerings of Cloudxchange.io to NSEIT’s digital transformation portfolio will further enhance its offerings to provide a complete 360° digital transformation suite for its enterprise clients. In recent times, the entire industry has witnessed an exponential surge in cloud adoption especially during the pandemic.”, NSE said in a release.
CBDT claims ₹880-cr concealed income detected after survey on Quess Corp
The Income Tax department has alleged “concealment” of ₹880 crore income after it surveyed a a leading manpower service providing company in Bengaluru.
The company, Quess Corp. Ltd, has refuted the charge, saying it was extending full cooperation to the department and that it has not received any claims to date. The survey operation was launched on 8 July at two premises of the company in the capital city of Karnataka. (PTI)
Zomato IPO: What the food tech says about growth, sustainability and competition
The much-anticipated domestic public offer of food tech major, Zomato, is here, with the opening of the three-day share sale for retail investors on Wednesday. The price band for the IPO has been fixed at ₹72 to ₹76 per share. (Read here)
Caplin Point Labs unit gets USFDA nod for Sumatriptan
Caplin Point Laboratories Ltd unit Caplin Steriles Ltd received final approval from the United States Food and Drug Administration (USFDA) for Sumatriptan Injection USP, a generic therapeutic equivalent version of IMITREX Injection, of GlaxoSmithKline, USA. Sumatriptan is indicated in adults for acute treatment of migraine with or without aura, and acute treatment of cluster headache.
Infra, core sectors to lead recovery: SBI chairman
SBI chairman Dinesh Khara said that infrastructure and core sectors will be the lead players driving the economy, he said in an interview to Moneycontrol.com. A revival inretail sector could also lead to revision in FMCG outlook, he added. “I see fintech companies as collaborators, not competitors,” Khara said, adding that banks and larger lenders can harness fintech companies’ domain knowledge.
Govt lists DICGC, PFRDA amendment bills for monsoon session: report
The Centre has listed the Deposit Insurance and Credit Guarantee Corporation (DICGC) and Pension Fund Regulatory and Development Authority (PFRDA) amendment bills for the Monsoon Session of Parliament, CNBCTV18 reported.
-DICGC amendment bill proposes time bound access to bank deposits once they suspend business.
-The PFRDA amendment bill seeks to separate the NPS trust from the regulator.
Adani Enterprises receives 3-month extension to take over Jaipur, Trivandrum, Guwahati airports
Adani Enterprises has received a three-month extension to takeover Jaipur, Trivandrum and Guwahati airports, CNBCTV18 reported citing people with knowledge of the matter. The company can now take over the airports by October, according to the report. The group-owned unit Airport Holdings Ltd (AAHL) took over the management control of Mumbai International Airport Limited (MIAL) from the GVK Group on Tuesday.
IL&FS expects to recover ₹58,000 cr by March 2022
Debt-laden Infrastructure Leasing and Financial Services (IL&FS) on Wednesday said it expects to address ₹58,000 crore or 95% of its estimated debt recovery target by March 2022. In April this year, the group had revised its estimates for aggregate debt recovery to ₹61,000 crore beyond September 2021. The group’s overall debt stood at ₹99,000 crore, as of October 2018. In a presentation released on Wednesday, the group said a significant portion or ₹50,000 crore of estimated recovery will be addressed by September 2021. (PTI)
June WPI inflation at 12.07%
WPI inflation in June was at 12.07% compared to 1.81% in June2020, according to official data. The figure was marginally lower than the May WPI inflation figure of 12.94%. Fuel and power inflation stood at 32.83% compared to 37.61% in May, while food inflation was at 6.66% compared to 8.11% in June.
HDFC mulls first ever offshore bond
HDFC Bank Ltd., India’s biggest lender by market capitalization, is considering to sell its first-ever offshore bonds that qualify as capital as it boosts buffers.
The Mumbai-based lender’s board on Saturday will mull a plan to issue perpetual Additional Tier 1 notes that comply with Basel III capital norms, according to a filing late Tuesday. It would be only the second such offshore offering from an Indian bank after the nation’s largest lender State Bank of India sold such securities in 2016. (Read here)
NMDC surges as it begins demerger
Shares of NMDC Ltd which recently took a beating after the government offloaded its stake in the company through an offer for sale (OFS), has surged over 5% over the past two sessions. The upmove is the result of the start of the process of demerger of NMDC Steel. On Tuesday, the board of directors approved the “scheme of arrangement of demerger” between NMDC and NMDC Steel. (Read here)
CESC hits 52-week high
CESC Ltd’s shares hit a new 52-week high in early deals on the National Stock Exchange on Wednesday. “It’s a catch-up trade. JSW Energy Ltd and Torrent Power Ltd shares are near all-time high. Tata Power Co. Ltd stock is at decadal highs, closer enough to all-time high. This isn’t the case with CESC, which had missed the rally due to pending WBERC regulation,” said Rohit Natarajan, analyst at Antique Stock Broking. WBERC stands for West Bengal Electricity Regulatory Commission. To be sure, the WBERC has started issuing tariff orders and this augurs well for CESC Kolkata discom’s tariff approval. (Read here)
L&T Infotech: Angel Broking maintains ‘accumulate’
“L&T Infotech (LTI) is one of the fastest growing mid cap IT companies in India. IT is part of the L&T group and provides services like ADM, enterprise solutions, infrastructure management services, etc. The company has a very strong presence to the BFSI & manufacturing verticals which accounts for 45% and 17.5% of the company’s revenues and are amongst the least impacted verticals due to the shutdown on account of covid -19. The company doesn’t have a very large exposure to service oriented verticals like travel and tourism which are amongst the worst impacted due to the covid-19 outbreak. LTI has been growing significantly faster than both mid and large cap peers over the past few years on the back of strong deal wins and we expect the out performance to continue for the company. We expect the company to post revenue/ebitda/PAT growth of 17.9%/20.5%/20.5% between FY20-FY23 given a strong deal pipeline and increased demand for digital solutions.”
Tata Metaliks shares climb over 8% after Q1 earnings
Shares of Tata Metaliks Ltd on Wednesday jumped over 8% after the firm reported a net profit of ₹94.72 crore for the quarter ended 30 June.
After a firm start, the stock gained further ground and jumped 8.06% to ₹1,299 at the BSE. On the NSE, it zoomed 8.14% to ₹1,299.55. Tata Metaliks Ltd, a subsidiary of Tata Steel, on Tuesday reported a net profit of ₹94.72 crore for the quarter ended June 30, 2021. The company posted a net loss of ₹12.36 crore in the year-ago quarter, Tata Metaliks said in a regulatory filing. (PTI)
Reliance Power’s shareholders approve share issue, fundraise via FCCBs, QIPs
Reliance Power’s shareholders have approved the preferential issue of 59.50 crore shares and 73 crore warrants worth ₹1,325 crore to Reliance Infrastructure Ltd. Reliance Infra and other promoters will increase their stake in Reliance Power to 24.98%. This will increase to 38.24% on conversion of warrants, the company said. Shareholders have also approved fund raising via issue of foreign currency convertible bonds up to 50% of the company’s net worth and through QIPs up to 25% of Reliance Power’s net worth, it said in a regulatory filing.
SBI lists out 6 reasons why you should invest in Sovereign Gold Bond scheme
The Sovereign Gold Bond scheme is open for subscription till 16th July 2021. As per the Reserve Bank of India (RBI) notification, the price offered in this Sovereign Gold Bond Scheme 2021-22 — Series IV is ₹4,807 per gm. The Government of India (GoI), in consultation with the RBI, has decided to offer a discount of ₹50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond is ₹4,757 per gm. (Read here)
Zomato IPO: Jyoti Roy – DVP- Equity Strategist, Angel Broking maintains ‘subscribe’
“Zomato Ltd has raised ₹4,196 crore by allotting 55.2 crore shares to anchor investors at ₹76 per share. Some of the key Marquee investors who were allotted shares in the anchor book include Tiger Global Investments Fund, BlackRock Global, Fidelity Funds, JPMorgan, Morgan Stanley Investment Fund, and T Rowe Price. Along with global investors the anchor portion witnessed strong participation from domestic mutual funds who were allotted 18.4 crore shares aggregating to ₹1,399 crore out of the ₹4,196 crore anchor book. Strong participation by institutions in the anchor book bodes well for the IPO and we expect continued strong demand for the IPO from both institutional and retail investors alike. Given strong delivery network, high barriers to entry, expected turnaround and significant growth opportunities in tier-II and tier-III cities, we believe that Zomato will command a premium to global peers and hence have a ‘subscribe’ recommendation on the IPO.”
Biocon, Aurobindo, Sun Pharma lead gains
Rupee falls 12 paise to 74.61 against US dollar in early trade
The Indian rupee depreciated 12 paise to 74.61 against the US dollar in opening trade on Wednesday as firm American currency and weak domestic equities weighed on investor sentiment. At the interbank foreign exchange, the rupee opened at 74.57 against the dollar, then fell further to 74.61, registering a fall of 12 paise over its previous close. On Tuesday, the rupee had settled at 74.49 against the US dollar. (PTI)
Employees of this Indian IT company to get 12-week gender-neutral parental leave
Global engineering, manufacturing and technology solutions company Cyient has decided to implement a 12-week gender-neutral parental leave policy across its offices globally. Under the policy, all employees of the company can avail of up to 12 weeks of paid leave after the birth or adoption of their child.
Mindtree stock hits a new 52-week high on a strong start to FY22
The shares of midcap IT company Mindtree Ltd hit a new 52-week high of ₹2,637 on the NSE on Wednesday reacting to the company’s stellar June quarter earnings. Among the key highlights was its robust deal intake of USD504 million and a strong deal pipeline. The company’s management indicated that the deal intake remains well-balanced across annuity and transformational deals, and the deal pipeline remains healthy despite strong deal closures, giving confidence in growth sustainability. (Read here)
Nifty watch: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“Once again the index has opened on a tepid note. The range bound movement of the Nifty is challenging and testing the patience of traders! Until we do not get past either level of this range which is currently between 15,400 and 15,900, we will not witness momentum and a one sided trading opportunity.”
LIC Housing, Barbeque Nation under Sebi lens
LIC Housing and Barbeque Nation are under Seb’s lens as the regulator asked exchanges to examine these companies’ preferential issue pricing, CNBC TV18 reported. Sebi is insisting that articles of association must be followed, according to the report.
Mindtree drives gains
Bitcoin below $32,000; ether, dogecoin prices also fall.
Cryptocurrency prices continued to fall with Bitcoin falling below $32,000 level today as the largest cryptocurrency has been stuck in a range between about $30,000 and $40,000 for weeks after reaching its all-time high near $65,000.
As per CoinDesk data, Bitcoin was down nearly 4% to $31,858 whereas ether, the second largest crypto declined over 7% to trade below $2,000 level at $1,883. Dogecoin, on the other hand, also slipped over 7% to $0.18. Other digital coins like Cardano, Uniswap, XRP also plunged more than 6% over the last 24 hours. (Read here)
Ceat to partner with Tata Power to set up a solar plant for its Maharastra based factory
Ceat Ltd – one of the country’s leading tyre manufacturers – announced partnership with Tata Power Ltd to establish a captive solar power plant with a capacity of 10 mega watt in the Solapur district of Maharashtra to a power the company’s manufacturing unit based in Bhandup. As part of the partnership, Tata Power has created a special purpose vehicle (SPV) named TP Akkalkot Renewable Limited which will be responsible for construction, operation and maintenance of this captive solar power plant.
India reports 38,792 new COVID-19 cases in the last 24 hours
India on Wednesday reported 38,792 new COVID-19 cases in the last 24 hours, data from health ministry showed, with daily deaths rising by 624. (Reuters)
The Sensex opened at 52,767.13, down 2.6 points, while the Nifty opened at 15,808.70, down 3.65 points, 0.02%. IT, metals were top gainers. Banks, financials and realty were top drags. Dr Reddy’s Infosys, and HCL Tech were top gainers on the 30-share Sensex.
The Sensex was at 52,801.44, up 31.71 points, or 0.06%, while the Nifty was at 15,808.70, down 3.65 points, or 0.02% at market pre-open.
Zomato IPO opens today: Latest GMP, other key details to know before you subscribe
The much-awaited initial public offering (IPO) of the home-grown food tech unicorn Zomato is finally here as the three-day share sale opens for subscription today with the offer price for the IPO fixed at ₹72- ₹76 per share. The issue, which closes on 16 July is going to be the second-biggest IPO since SBI Cards and Payment Services’ last year in March. (Read here)
Infosys Q1 earnings: 5 things to watch out for
ll eyes are on Infosys Ltd’s performance after Tata Consultancy Services Ltd (TCS) missed analyst estimates on both revenues and profit. Infosys’ Q1 results might set the tone for the rest of the earnings season. Mint highlights five things to watch out for in Infosys’ first quarter earnings that will be declared on 14 July, after market hours. (Read here)
Heavy rains in Maharashtra: IMD issues red, orange alerts in these districts
Mumbai and neighbouring Thane are likely to receive heavy to very heavy rainfall at isolated places on Wednesday, the India Meteorological Department (IMD). In view of this, an orange alert has been issued for the districts. (Read here)
S&P retains its lowest rating for India with stable outlook
S&P Global Ratings on Tuesday affirmed its lowest investment-grade sovereign rating (BBB-) for India with stable outlook, holding that the country’s recovery will gain pace through the second half of the fiscal year 2021-22 (FY22) and into the following year, helping stabilize its overall credit profile. (Read here)
Maruti Suzuki not shifting jobs, investment from Haryana to Gujarat: chairman
The country’s largest carmaker Maruti Suzuki India is neither shifting investments nor jobs from Haryana to Gujarat by shifting production of its compact sedan Dzire, company Chairman RC Bhargava said on Tuesday.
The company is maximising the efficiency of production at its two plants at Haryana and the parent Suzuki’s Gujarat plant, keeping in mind the demand of its multiple models. “The plants in Haryana will continue to work in full capacity. Employment will remain full, there’s no change in employment. No production is going away from Gurugram. If this (Dzire) goes away some other model will be made here. It’s a rationalisation of how to make different models in the most efficient manner,” Bhargava said. He was responding to remarks of Congress General Secretary Randeep Singh Surjewala who on Monday criticised the Haryana government over the shifting of Dzire production from the state to Gujarat. (Read here)
Markets are likely to be volatile on Wednesday while trends in SGX Nifty suggest a weak opening of Indian benchmark indices. On Tuesday, the BSE Sensex closed at 52,769.73, up 397.04 points or 0.76%.The Nifty was at 15,812.35, up 119.75 points or 0.76%.
Zomato raises ₹4,196 cr anchor allocation ahead of IPO
Online food delivery platform Zomato on Tuesday said that it has raised ₹4,196 crore from several prominent institutional investors as part of an anchor book allocation, a day ahead of its public offering… Marquee global investors that participated in the anchor book include Government of Singapore, canadian pension funds Canada Pension Plan Investment Board and OMERS, BlackRock Global Funds, T Rowe Price, Fidelity, Aberdeen Global Indian Equity, Baillie Gifford, Steadview Capital, Goldman Sachs, Neuberger Berman, Abu Dhabi Investment Authority and Pinebridge Global Funds. (Read here)
Worst violence in years spreads in South Africa as grievances boil over
Crowds clashed with police and ransacked or set ablaze shopping malls in cities across South Africa on Tuesday, with dozens of people reported killed, as grievances unleashed by the jailing of ex-president Jacob Zuma boiled over into the worst violence in years. Protests that followed Zuma’s arrest last week for failing to appear at a corruption inquiry have widened into looting and an outpouring of general anger over the hardship and inequality that persist 27 years after the end of apartheid. Poverty has been exacerbated by severe social and economic restrictions aimed at blocking the spread of COVID-19.
Stocks to Watch
Adani Enterprises, Mindtree, PNB Housing, Reliance Infra, among other stocks may be in the news today. ( Read here)
Asian markets witness mixed start
Asian stocks were mixed early Wednesday after Wall Street fell from a record and bond yields rose following a surprise US inflation jump that stirred the debate on how long Federal Reserve policy can stay ultra-loose. Shares fluctuated in Japan, dipped in South Korea and were steady in Australia. US futures were little changed after the S&P 500 slipped for the first time in three trading sessions while the Nasdaq 100 ended little changed. Traders are digesting a release showing the highest US inflation since 2008 as well as mixed earnings from JPMorgan Chase & Co. and Goldman Sachs Group Inc.
S&P 500 futures were steady as of 9:32 a.m. in Tokyo. The S&P 500 fell 0.4%
Nasdaq 100 futures were stable. The Nasdaq 100 was little changed
Japan’s Topix index fell 0.1%
Australia’s S&P/ASX 200 Index rose 0.2%
South Korea’s Kospi index fell 0.4%
Hang Seng Index futures slipped 0.1% earlier
Wall Street indices shed gains as US CPI inflation climbs
Stocks retreated from record highs and bond yields rose as investors debated whether the Federal Reserve risks letting inflation get out of hand.
Yields climbed for a third day after the Treasury Department sold $24 billion in 30-year bonds at levels higher than just before its bidding deadline. The benchmark S&P 500 fell for the first time in three trading sessions with JPMorgan Chase & Co. and Goldman Sachs Group Inc. reporting mixed results as second-quarter earnings season gets under way. A report earlier showed prices paid by US consumers surged in June by the most since 2008, topping all forecasts and showing higher costs associated with the economy’s reopening continue to fuel inflationary pressures. The consumer price index jumped 0.9% in June and 5.4% from the same month last year.
The S&P 500 fell 0.3% as of 4 pm New York time
The Nasdaq 100 was little changed
The Dow Jones Industrial Average fell 0.3%
The MSCI World index fell 0.2%
Never miss a story! Stay connected and informed with Mint.
our App Now!!