The Reserve Bank of India (RBI) hiked the interest rate by 50 basis points on Friday. This is the third hike since the beginning of the current financial year aimed at taming the inflationary pressure. US stocks sent mixed signals on Thursday as investors continued to review the latest updates on the economy and corporate earnings ahead of the US jobs report.
Britannia stock drags; loses 2% in today’s session
Multibagger stock rises over 16% after Q1 results. Do you own?
After the announcement of Q1FY23 results on Thursday, BSE-listed Orissa Bengal Carrier shares have attracted strong buying interest among the market bulls on Friday. In the morning session, shares of the logistics company opened with an upside gap and went on to hit intraday high of ₹130.40 apiece levels on BSE, logging around 16 per cent from its Thursday close of ₹108.70 apiece levels. (Read More)
India’s Pine Labs eyes $4-5 billion in monthly payments volume from new business
India’s Pine Labs is targeting $4 billion to $5 billion in monthly transactions within two years for its new online payments business, its chief executive told Reuters.
At that point, online payments should contribute 20% of revenue, Pine Labs chief executive Amrish Rau said, disclosing the company’s targets for the first time since it entered online payments.
Valued at $5 billion and with investors including Mastercard and Singapore’s Temasek, Pine Labs has for years provided point-of-sale machines to offline merchants for card payments.
Prabhudas Lilladher on RBI Policy: RBI will go for a 15bps – 25bps hike in the next MPC meeting
Ritika Chhabra- Economic and Quant Analyst, Prabhudas Lilladher: “Markets were expecting a rate hike between 35-50 bps, so the RBI hike of 50 bps is on the higher side of the expectations. The RBI emphasized that it remains committed to the withdrawal of the liquidity to the contain the inflation. However, the governor did mention that the signs of moderation in inflation are emerging in form of ease in metals and food commodities and inflation is expected to be within the tolerance limit at 5.8% by Q4FY23. There was no forward guidance on the rate trajectory going forward, however, we believe that with much of the front loading behind us and oil prices also easing, RBI will go for a 15bps – 25bps hike in the next MPC meeting.”
Paytm down for several users, company says ‘trying to fix the issue’
Digital payment platform Paytm, on Friday, assured to fix the issues hours after several users reported glitches while making the transactions through the app on social media.
“Due to a network error across Paytm, a few of you might be facing an issue in logging into the Paytm Money App/website. We are already working on fixing the issue at the earliest. We will update you as soon as it is resolved,” a tweet read on Paytm Money’s handle.
Zomato rejects EY’s new valuation that lowers its share price for Blinkit deal
Online food aggregator and delivery platform Zomato on Friday said its board has rejected EY’s latest valuation report that lowered its share prices for acquiring quick commerce firm Blinkit. The board has decided to keep the preferential price at ₹70.76 as pegged by EY earlier. (Full report)
London shares open lower as energy stocks weigh
UK shares opened slightly lower on Friday, with energy stocks leading the declines, a day after the Bank of England raised interest rates by the most in 27 years.
The FTSE 100 index dipped 0.1%, while the midcaps index also shed 0.1%.
The FTSE 100 index ended flat on Thursday after the British central bank’s Monetary Policy Committee raised its Bank Rate by half percentage point to 1.75% – the highest level since late-2008.
Tata Motors aim to grow in excess of 40% over Q2 FY22, says VP (Sales)
With an eye on the upcoming Onam season, Tata Motors, a home-grown automaker, plans to increase its sales in Kerala by 40% in the second quarter of the financial year 2022. Rajan Amba, the Vice-President, Sales, Marketing and Customer Care of Tata Motors Passenger Vehicles Ltd, said Kerala is a big market for the hatch and SUV segment of vehicles. Amba was in Kerala to announce the consumer offers for the automotive brand ahead of the Onam festival in Kerala.
M&M Q1 net profit, revenue rise 67% respectively; shares fall
Mahindra and Mahindra (M&M) reported Q1 FY23 results on Friday in which its standalone net profit rose more than 67% to ₹1,430 crore as compared to ₹855 crore year-on-year (YoY). Its revenue increased by 67% to ₹19,613 crore from ₹11,765 in the year-ago quarter. (Full Report)
Views on Nifty – Technicals and Derivates
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd
“On the technical front, 17450-17500 still holds the sturdy wall for the bulls, and a decisive closure above the same could only trigger fresh longs in the system. Meanwhile, any dip towards the 17200 zone is likely to get bought into, while the sacrosanct support lies around the unfilled gap and psychological mark of the 17000.
Hence, looking at index placements and the recent price action that construes the undertone to favor the bulls, participants are advised to avoid aggressive bets and stay abreast with global and domestic developments. Also, we advocate continuing with a stock-centric approach for better trading opportunities.”
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd
“Past two consecutive days of similar pattern formation indicates that volatility is likely to rule in the coming sessions and inability to surpass the immediate resistance level of 17500 makes the viewpoint stronger. The pattern specifies of an upcoming reversal in the market but no signs of exhaustion can be seen yet through oscillators, though the indicator has flattened during the period. On the downside, the psychological level of 17000 which further coincides with the 200dma would be the immediate short-term trend deciding level for the market. On the upside, the elevated target level for Nifty is around 17500 (being 80% retracement of two-month decline (18100-15183). Hence, during the day Index is likely to witness gap up opening tracking global cues and is expected to head northward to challenge the 17500 levels, use intraday dip towards 17200-17250 to create long position for the target of 17575.”
Yes Securities says RBI’s Integrated Ombudsman Scheme for Credit Information Cos will foster more discipline
Credit Information Companies (CICs)
It has been decided to bring CICs under the RBI – Integrated Ombudsman Scheme.
As per the RBI, this has been done to provide cost-free alternate redress mechanism to customers for grievances against CICs.
Potential impact: This will foster more discipline on the part of CICs in terms of how they analyse borrower data before making hitherto unilateral numerical pronouncements about borrower creditworthiness.
RBI rate hike impact: What stock, bond market investors should know
The Reserve Bank of India (RBI) raised the key policy repo rate by 50 basis points while Governor Shaktikanta Das remained optimistic about domestic growth. He said that the domestic economic recovery is getting more broad-based despite a lot of uncertainties on the global front. (Full Report)
Shriram Housing Finance plans to issue 4-year bonds – traders
Shriram Housing Finance Ltd plans to raise ₹580 million through the sale of bonds maturing in four years, three merchant bankers said on Friday.
The non-banking finance company will pay an annual coupon of 8% on the issue and has invited commitment bids from bankers and investors on Monday, according to the merchant bankers.
The bonds are rated AA by CARE Ratings and the issue will close for subscription next week.
JB Pharma’s revenue surges 30% in Q1, PAT declines
JB Pharmaceuticals recorded a revenue of ₹785 crores in the quarter ended June, up 30% over the corresponding quarter of last year. Profit after tax, however, declined to ₹105 crore in Q1FY23 as compared to ₹119 crores on account of finance costs and acquisition of brands. (Full report)
Gail India stock among laggards, slides 4%
Noon Update: Indices in green post RBI 50 bps rate hike. Sensex gains 200 points and Nifty 50 points.
Ultratech Cement and ICICI lead the rally with a gain of 2%; Reliance and Maruti Suzuki are trading 1% down
Tokyo shares close higher ahead of US job data
Tokyo shares closed higher on Friday following tech gains on Wall Street while traders awaited the US job data due later in the day.
The benchmark Nikkei 225 index climbed 0.87%, or 243.67 points, to end at 28,175.87, while the broader Topix index rose 0.85%, or 16.44 points, to 1,947.17.
How loan EMIs, bank FDs could be impacted by RBI’s interest rate hike
The Reserve Bank of India (RBI) today raised repo rate by 50 bps to 5.40 per cent, thus reaching to pre-Covid levels. Aiming to contain inflation by squeezing the liquidity in the market, RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) hiked the policy repo rate for the third time in a row on Friday.
Home loan EMI of new borrowers is expected to shoot up by near ₹1,000 per month, if banks raise home loan interest rate by 50 bps, say experts. (Full Report)
India reports 70 Covid deaths, 20,551 new cases in a day
India has logged more than 20,551 covid cases and 70 deaths in the last 24 hours. There are around 1,35,364 active cases at present, the union health ministry data stated on Friday.
India has administered more than 205.58 crore vaccination doses under the nationwide vaccination drive.
The active cases stand at 0.31% while the recovery rate is currently at 98.50%. At least 21,595 people have recovered from the infection in the last 24 hours increases with total recoveries reaching to 43445624 so far.
The MPC decisions have been in line with our expectations: Kotak Mahindra Bank
Upasna Bhardwaj, chief economist, Kotak Mahindra Bank said, “The MPC decisions have been in line with our expectations. Given the increasing external sector imbalances and global uncertainties the need for frontloaded action was imperative. We continue to see 5.75% repo rate by Dec 2022.”
PSU Bank index gains the most in today’s session, up almost 1.5%
India’s Tata Capital Housing Finance accepts bids on bonds – traders
ndia’s Tata Capital Housing Finance has accepted bids worth an aggregate 4.92 billion rupees ($62.20 million)on its two-part bond issuance, three merchant bankers said on Friday.
The housing finance company has accepted bids worth 2.92 billion rupees on three-year bonds and will pay an annual coupon of 7.55%.
It has accepted bids worth two billion rupees on five-year bonds and will pay an annual coupon of 7.80% to investors.
India’s reserves fourth largest globally: RBI Governor
Despite the drawdown of foreign exchange reserves to limit rupee volatility, India’s reserves remain the fourth largest globally: RBI Governor Shaktikanta Das
HDFC raises USD 1.1 bn ‘social loan’ for financing affordable housing segment
Mortgage lender HDFC Ltd on Friday said it has raised USD 1.1 billion (around ₹8,700 crore) from a clutch of investors under ‘Syndicated Social Loan Facility’ to cater to the affordable housing segment.
HDFC Ltd has raised the amount by way of external commercial borrowings (ECBs).
“This landmark financing further promotes HDFC’s longstanding mission to be the leading provider of housing finance in India. Proceeds from the social loan would go towards financing affordable housing loans,” the company said.
FDI figure remains robust: RBI
Foreign Direct Investment at 13.6 billion dollars in the first quarter of the current financial year was robust, as compared to 11.6 billion dollars in the first quarter of last year: RBI Governor Shaktikanta Das
Surplus liquidity in the banking system down: RBI Governor
Surplus liquidity in the banking system has come down to ₹3.8 lakh crore, from ₹6.7 lakh crore in April-May, said the RBI Governor, adding that a rise in term deposit rates should increase liquidity for the financial sector.
Prabhudas Lilladher recommendations on Britannia, DMart, KEC, and Gail India
Britannia Industries (BRIT IN): HOLD | CMP: Rs3,775 | TP: Rs3,880
Avenue Supermarts (DMART IN): BUY | CMP: Rs4,239 | TP: Rs4,636
KEC International (KECI IN): ACCUMULATE | CMP: Rs444 | TP: Rs473
GAIL (India) (GAIL IN): BUY | CMP: Rs140 | TP: Rs180
CPI forecast for FY23 kept unchanged at 6.7%: RBI
Consumer price index (CPI) inflation remains uncomfortably high and is expected to remain above 6%: RBI Governor.
RBI retains FY23 GDP growth forecast at 7.2%
The RBI has retained its FY23 gross domestic product (GDP) growth forecast at 7.2%
RBI’s decision brings the interest rate to the pre-pandemic level
Successive shocks to global economy taking toll: RBI Governor
RBI Governor stated that successive shocks to the global economy are taking a toll, but India is expected to be amongst the fastest growing economy in the world
Marginal Standing Facility (MSF) and Bank rates have been adjusted to 5.65% from 5.15% : RBI
RBI hikes repo rate by 50 bps to 5.4%
The rate hike of 50 basis points will go into effect immediately
Bank and Financial Sector stocks zoom; Oil & Gas Index slides
Ultratech Cement gains 2% in morning trade
Edible oil price to reduce by ₹10-12 after makers decided to cut retail prices
In what may come as a relief for the common man, the price of edible oils may see a further reduction in the coming days. The development took place after the edible oil processors and manufacturers agreed to cut prices by ₹10-12 to pass on the benefits of a decline in global prices to consumers, according to a report.
“Cooking oil manufacturers have agreed to further slash edible oil prices by ₹10-12 in view of softening global prices. We had a good meeting with them where we made a detailed presentation with data,” said one of the officials, asking not to be named as reported by Hindustan Times.
India’s Power Finance Corp to issue multi-tenor bonds – traders
India’s Power Finance Corp plans to raise funds through sale of bonds maturing in three years as well as 10 years, four merchant bankers said on Friday.
The state-run company plans to raise at least five billion rupees ($63.20 million) through each issue, with the three-year bonds having a greenshoe option to retain an additional 20 billion rupees, and the 10-year notes to retaiin additional 10 billion rupees.
The company has invited coupon and commitment bids from bankers and investors for the same on Monday.
Reliance Securities Stock in Focus: SAIL
STOCK IN FOCUS
SAIL (CMP Rs.77)
We have a BUY rating on the company with a Target Price of Rs94.
EXIDEIND (PREVIOUS CLOSE: 157) SELL
For today’s trade, short position can be initiated in the range of ₹159- 161 for the target of Rs.154 with a strict stop loss of ₹162.
HINDPETRO (PREVIOUS CLOSE: 245) BUY
For today’s trade, long position can be initiated in the range of ₹240- 242 for the target of Rs.250 with a strict stop loss of ₹236.
LTTS (PREVIOUS CLOSE: 3526) BUY
For today’s trade, long position can be initiated in the range of ₹3450- 3500 for the target of Rs.3620 with a strict stop loss of ₹3400.
Sensex and Nifty opened flat on Friday with each up around 100 and 40 points, respectively.
Indian rupee strengthens ahead of RBI decision
The Indian rupee firmed ahead of a central bank monetary policy decision on Friday, supported by overnight weakness in oil prices and the dollar.
The partially convertible rupee was trading at 79.15 per dollar in the early morning, compared to its previous close of 79.4650.
Markets are keenly awaiting the Reserve Bank of India’s policy decision at the end of a three-day meeting, where it’s widely expected to increase its key interest rate from anywhere between 25 basis points and 50 basis points.
RBI Monetary Policy: Governor Shaktikanta Das to announce MPC decision at 10 am. Check live updates in this link
The Reserve Bank of India (RBI) Governor Shaktikanta Das-led Monetary Policy Committee (MPC) is likely to hike the policy repo rate for the third time this year on Friday in order to tame the inflationary pressure. Check here for live updates.
Sensex flat at pre-open amidst expectation of a rate hike
Cryptocurrency prices today: Bitcoin falls while ether, dogecoin Shiba Inu gain
Cryptocurrencies prices today were mixed with Bitcoin trading below the $23,000 mark. The world’s largest and most popular cryptocurrency Bitcoin was trading nearly a per cent lower at $22,971. The global crypto market cap today was above the $1 trillion mark, as it was almost flat in the last 24 hours at $1.12 trillion, as per CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, rose marginally to $1,657. Meanwhile, dogecoin price today was trading more than a per cent higher at $0.06 whereas Shiba Inu gained 0.5% to $0.000012.
Stocks to Watch: Adani Enterprises, JSW Steel, Tata Steel, Axis Bank, HCL
Alkem Laboratories, M&M, Indigo Paints, Paytm, Pfizer, Titan, and UCO Bank will be in focus as they declare their June quarter earnings today. (Full Report)
Sebi orders forensic audit of Future Retail’s financials
The Securities and Exchange Board of India (Sebi) has ordered a forensic audit of the financials of Future Retail, the company told the stock exchange on Thursday.
Future Consumer, a subsidiary, said Sebi has written to Future Retail’s interim resolution professional (IRP) intimating the appointment of Chokshi & Chokshi as the forensic auditors. The chartered accountant firm will look into the consolidated financial statements and account books of the company for the period between March 2020 and March 2022. (Full Report)
Oil prices extend losses on demand worries
Oil prices extended losses on Friday, after hitting their lowest since before Russia’s February invasion of Ukraine in the previous session, as the market fretted over the impact of inflation on global economic growth and demand.
Brent crude dropped 10 cents, or 0.1%, to $94.02 a barrel by 0047 GMT, while U.S. West Texas Intermediate crude was at $88.48 a barrel, down 6 cents.
PFC, REC may loan ₹1.45 trillion to help discoms clear dues
State-run Power Finance Corp. Ltd. (PFC) and its subsidiary REC Ltd. are expected to lend around ₹1.2 trillion to state-run electricity distribution companies (discoms) under the Union government’s ambitious one-time settlement scheme that will kick in from 5 August, said two government officials. (Full Report)
Tokyo stocks rise after US tech gains
Tokyo stocks traded higher Friday following tech gains on Wall Street while more businesses reported that higher raw material prices were weighing on profits.
The benchmark Nikkei 225 index opened flat then rose 0.23%, or 65.06 points, to 27,997.26, while the broader Topix index was up 0.30%, or 5.77 points, at 1,936.50.
Gold rises ₹487; silver gains ₹426
Gold in the national capital on Thursday gained ₹487 to ₹52,566 per 10 grams amid a rise in international precious metal prices along with rupee depreciation, according to HDFC Securities.
The yellow metal had closed at ₹52,079 per 10 grams in the previous trade.
Silver also rose by ₹426 to ₹58,806 per kg from ₹58,380 per kg in the previous trade.
Tiger sells 2.34% stake in Zomato
Tiger Global nearly halved its stake in food delivery company Zomato Ltd, joining investors such as Uber Inc. and Moore Strategic Ventures, who have either exited or pared their stakes after a year-long lock-in for some shareholders ended on 23 July. (Full Report)
Centre mulls slashing steel export duty amid falling prices and rising domestic supply
The Union government may reduce or eliminate the export duty on steel products amid falling prices and rising domestic supply, two people familiar with the matter said, after a similar decline prompted a duty cut on petro products. (Full Report)
Rupee skids 25 paise to 79.40 against US dollar
The rupee depreciated by 25 paise to close at 79.40 against the US dollar on Thursday, posting its second day of losses amid disappointing macroeconomic data and US-China tensions.
Participants also stayed on the sidelines ahead of the RBI’s interest rate decision on Friday, forex traders said.
RBI set to hike policy rates for the third time in a row to tame inflation
The Reserve Bank of India is likely to hike the policy repo rate by 25 to 50 basis points on Friday, the third hike since the beginning of the current financial year, in order to tame the inflationary pressure.
While the hike in policy interest rates is almost certain, analysts and economists have different opinions on the extent of the rate hike. It varies between 25 basis points to 50 basis points.
US stocks end mixed amid earnings, economic updates
Stocks gave back some of their recent gains Thursday as a choppy day of trading on Wall Street ended with a mixed finish for the major indexes.
The S&P 500 closed 0.1% lower after wavering between small gains and losses. The Dow Jones Industrial Average fell 0.3%, while the Nasdaq rose 0.4%.
Energy stocks, the biggest gainers in the benchmark S&P 500 so far this year, were the biggest drag on the market as the price of U.S. crude oil fell below $90 per barrel for the first time since early February, before Russia’s invasion of Ukraine.
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