Market News

Chennai (The Hawk): The Sensex of the BSE and the Nifty of the NSE both reached record highs on Tuesday as the Indian stock markets erupted for the second day in a row.
After starting the day at 62,362.08 points and touching a low of 62,362.08 points throughout the day, the Sensex of the BSE reached a record high of 62,877.73 points on Monday.
On Monday, the Sensex reached an all-time high of 62,701.40 points before closing at 62,504.80 points.
The Sensex has increased by 323.21 points to 62,828.01 points.
The Nifty began at 18,552.45 points on the NSE after closing at 18,562.75 points the previous day.
The Nifty then surged to a high of 18,659.75 points and a low of 18,552.15 points.
(Inputs from Agencies)

The Sensex of the BSE and the Nifty of the NSE both reached record highs on Tuesday as the Indian stock markets erupted for the second day in a row.

On Tuesday, Indian stock markets reached fresh highs

Market

Tokyo (The Hawk): As investors choose to take profits before the announcement of US inflation data, which is viewed as a gauge for the future trajectory of the US Federal Reserve's interest rate hikes, the benchmark Nikkei stock index of Japan finished lower on Wednesday.
The Nikkei Stock Average, which has 225 issues, dropped 155.68 points, or 0.56 percent, from Tuesday to end the day at 27,716.43, according to the Xinhua news agency.
In contrast, the larger Topix index lost 8.07 points, or 0.41 percent, to close at 1,949.49.
Dealers in this city claimed that investors preferred profits over pursuing the market higher since the Fed's decision to raise interest rates will be influenced by the release of inflation data in the United States in the near future.
Investors have adopted a wait-and-see attitude before the CPI, according to Takuro Hayashi of IwaiCosmo Securities.
According to Hayashi, "buying is still going on for chip-related shares and companies reporting positive earnings, so the market backdrop isn't too awful."
Brokers added that investors also exhibited a wait-and-see attitude in anticipation of the results of the U.S. midterm elections.
Toshikazu Horiuchi, an equities strategist at IwaiCosmo Securities Co., was reported as stating, "Following a buying binge, investors sold shares to lock in profits before the election results come out later in the day."
By game's end, the topics that decreased the most included mining, oil and coal products, and air transportation.
The Nikkei's largest loser was electric car battery maker GS Yuasa, which sank 7.4% after posting weaker-than-expected results, while Nintendo dropped 7.1% after lowering its sales projection for its Switch game systems.
Tokyo Electron, a manufacturer of chip-making equipment, was the Nikkei's top gainer with a gain of 1.6 percent, while Suzuki Motor advanced by 3.5 percent following an upward revision to its earnings prediction for the fiscal year through March.
By 880 to 865, issues that increased outnumbered those that decreased, and 92 issues concluded the day unchanged.
1,281.77 million shares were traded on the Prime Market on Wednesday, down from 1,344.69 million shares on Tuesday.
On the third trading day of the week, there was a 3,391.54 billion yen turnover (23.32 billion U.S. dollars)
(Inputs from Agencies)

As investors choose to take profits before the announcement of US inflation data, which is viewed as a gauge for the future trajectory of the US Federal Reserve's interest rate hikes, the benchmark Nikkei stock index of Japan finished lower on Wednesday.

In advance of US inflation statistics and election results, Japan's Nikkei closes down

New Delhi: The week gone by had all the festivities on account of Diwali and the beginning of trading for Samvat 2079. There was just 'Muhurat' trading of one hour on Monday followed by a holiday on Wednesday which had disrupted and broken the market momentum. However, at the end of it all, markets did gain with a good showing for the week and they were up on three of the four trading sessions. 
BSESNESEX gained 652.70 points or 1.10% to close at 59,959.85 points while NIFTY gained 210.50 points or 1.20 per cent to close at 17,786.80 points. The broader market saw BSE100, BSE200 and BSE500 gain 1.17 per cent, 1.12 per cent and 1.05 per cent respectively. BSEMIDCAP was up 0.98 per cent and BSESMALLCAP was up 0.43 per cent. The Indian Rupee gained 21 paisa or 0.25 per cent to close at Rs 82.47. Dow Jones had a terrific week and was up a massive 1779.24 points or 5.72 per cent to close at 32,861.80 points. It gained on all the five trading sessions with Wednesday being actually a flat day. The best of the week was reserved for Friday when it gained a massive 828 points. The impact of this rally on Friday is likely to be seen in our markets on Monday when we would see a gap up opening. October futures expired on a positive note and the series gained in the last week. The series ended with gains of 918.85 points or 5.46 per cent at 17,336.95 points. FSN E-commerce, the company which is listed under the brand Nykaa, continues to face the wrath of investors ever since it announced an unexpected bonus issue of 5 shares for every one held. The share price has been under pressure ever since the announcement was made on 3rd of October. The share price post bonus announcement was Rs 1,304.90, and has now fallen to Rs 983.15. The fall is Rs 321.75 or 24.65 per cent. The low was Rs 975.50, which is a new low for the share since listing. The company would be declaring results for the quarter on Tuesday the 1st of November and one cannot be sure about their quality. The primary market is seeing a sharp flurry in activity with companies wanting to beat the validity of results of the June quarter ending in a fortnight's time. There is a spate of issues in the week ahead and the one following. The first of the block is DCX Systems Limited which is raising Rs 400 crore fresh and Rs 100 crore through an offer for sale. The company is into defence related activity primarily in the aerospace segment and is an Indian offset partner for Israeli companies amongst others. The issue opens on Monday the 31st of October and closes on Wednesday the 2nd of November. The price band is Rs 197-207. The EPS for the year ended March 22 was Rs 9.19. At this price the PE band is 21.44-22.52 times. Considering the huge shortfall in execution of pending offset contracts, the company has a huge future going forward. The business looks interesting and investment is warranted. The second company is Fusion Microfinance Limited which is tapping the markets with a fresh issue of Rs 600 crore and an offer for sale 136.95 lakh shares. The issue opens on Tuesday the 1st of November and closes on Thursday the 3rd of November. The price band is Rs 350-368. The company has cleaned its books as far as provisions on NPA is concerned as of march 22 and has come with a clean slate to the markets. If one considers the EPS for March 22, it is a mere Rs 2.64 for the full year, while it is Rs 8.98 on a fully diluted basis for the quarter ended June 22. Considering that the quarterly numbers are annualised for simplicity's sake we are talking of an EPS of Rs 35 to Rs 36 for the full year March 23. The EPS should be calculated on this basis. Another way to look at it is the price to book for the bank. The NAV for March 22 is Rs 161.67, which has improved to Rs 171.10 at the end of June quarter. The issue is priced at a price to book ratio of 2.27 based on March 22 numbers and 2.15 times June numbers. The company looks attractive and investment in the company should be considered. The third and final issue for the week is from Global Healthcare Limited which is tapping the capital markets with its fresh issue of Rs 600 crore and an offer for sale of 507.61 lakh shares in a price band of Rs 319-336. The issue opens on Thursday the 3rd of November and closes on Monday the 7th of November. The company which uses the brand 'Medanta', operates five hospitals in the cities of Gurugram, Lucknow, Patna, Ranchi and Indore. It is in the process of setting up a hospital in Noida which would take another 24-30 months to be commissioned. The growth for the company would come from additional beds which are set up at the existing facilities. The company has compared itself with Apollo Hospitals, Max, Fortis and Narayana. In terms of revenues, it is smaller than all of these. The company has reported losses in the new hospitals that have been set up while the oldest and established one in Gurugram is the cash cow of the company. On a net basis the company reported an EPS of Rs 7.77 for the year ended March 2022. At this EPS, the PE band is 41.08 to 43.24 on a diluted basis. This compares favourably with Apollo and Max. Is similar to Narayana but is more expensive than Fortis. While the business is good and Dr Trehan, the founder, has a tremendous background, it appears that there is hardly anything on the table in the near term for investors. While in the long term, the turnaround in the four hospitals and utilisation of land available in Gurugram would impact the hospital positively, this needs to be put into action to bear fruit. Investors should look at the company post listing or after the September results are announced. Coming to the markets, we are well poised to touch the levels of 18050-18,150 on NIFTY and 61,000 on BSESENSEX. If these levels are crossed and sustained, we have further upside possible. Assuming these levels are crossed which may not happen this week as we have FED meeting for their interest rate hike considerations on Tuesday and Wednesday, we are in for sharp upsides. How the US markets would react is anybody's guess. As far as a rally is concerned, we have already gained quite sharply. At best markets may consolidate or we may react small if all is well. If data and commentary is poor there could be a sharp correction as well. The market has very strong support in the region of 17,350-17,450 on NIFTY and 58,650-58,950 on BSESENSEX. This takes care of the previous top and also some more cushion on the downside. The strategy would be to buy on any meaningful dips and sell on strong rallies. For some time now onwards, trade is going forward, with a positive bias. (Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)
—IANS&nbsp;

The week gone by had all the festivities on account of Diwali and the beginning of trading for Samvat 2079. There was just 'Muhurat' trading of one hour on Monday followed by a holiday on Wednesday which had disrupted and broken the market momentum.

Markets to continue with upward momentum

New Delhi (The Hawk): Following the 'Merge,' the dominance of Ethereum, the second largest cryptocurrency after Bitcoin, has increased by 20% in the global crypto market, according to a research released on Wednesday.
Last month's historic Ethereum update, known as the 'Merge,' will build a more energy-efficient network based on the second largest cryptocurrency, with the promise of saving the environment.
According to niche news publication BanklessTimes.com, the Ethereum merger has generated a lot of buzz, with every crypto enthusiast eagerly anticipating its arrival.
According to the research, the Merge was a success, and Ethereum's market dominance is growing.
"As expected, Ethereum's dominance is growing. Its ecologically friendly approach appeals to cryptocurrency users. Furthermore, as a result of the Merge, more people are adopting Ethereum than Bitcoin. The course has been established, and Ethereum will continue to rise "Jonathan Merry, CEO of BanklessTimes.com, stated
The blockchain is currently preparing for the Shanghai upgrade. Following the Shanghai upgrade, Ethereum expects to experience the "Surge," "Verge," and "Purge."
Surge is a "sharding" technology application. The technique will increase Ethereum's maximum transaction processing speed from 15 to 20 transactions per second to over 100,000 transactions per second.
The verge is the anticipated application of a mathematical proof known as "Verkle trees." The App will allow blockchain nodes to operate without downloading the complete chain's history. Finally, the purge will clear the chain of all legacy data. Combining these three enhancements will result in a more robust Ethereum blockchain. Some predict that Ethereum will one day overtake Bitcoin in market capitalization, a phenomenon known as "the Flippening."
"The post-Merge period will be crucial for Ethereum. As it dominates the crypto industry, the coin is likely to reach new all-time highs "the cited report.
(Inputs from Agencies)

Following the 'Merge,' the dominance of Ethereum, the second largest cryptocurrency after Bitcoin, has increased by 20% in the global crypto market, according to a research released on Wednesday.

After the 'Merge,' Ethereum's dominance in the crypto market increased by 20%

San Francisco (The Hawk): Despite a global decline in PC sales, Microsoft reported a 14% decline in net profit for the first quarter of 2023 (the period of July to September).
Microsoft's first quarter of 2023 saw $50.1 billion in revenue and $17.6 billion in net income.
Digital technology is the ultimate tailwind in a world with growing headwinds, according to Satya Nadella, chairman and CEO of Microsoft.
In this environment, Nadella said in a statement late on Tuesday, "we're focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way."
Microsoft Cloud revenue increased by 24% year over year to $25.7 billion.
Amy Hood, executive vice president and CFO of Microsoft, stated that "we continue to see healthy demand across our commercial businesses, including another quarter of solid bookings as we deliver compelling value for customers."
According to IDC, global shipments of traditional PCs totaled 74.3 million units during the period of July through September, a 15% decline year over year. This decline is primarily to blame for the decline in net profit.
According to Microsoft, revenue from LinkedIn increased by 17%, while revenue from Intelligent Cloud increased by 20% to $20.3 billion.
More Personal Computing generated $13.3 billion in revenue, a marginal decline.
Revenue from Xbox devices increased by 2% while revenue from content and services fell by 3%.
Nearly half of Xbox Series S purchasers, according to Nadella, are first-time users of our ecosystem.
(Inputs from Agencies)

Despite a global decline in PC sales, Microsoft reported a 14% decline in net profit for the first quarter of 2023 (the period of July to September).

Microsoft reports a 14% decline in net profit due to falling PC sales

San Francisco (The Hawk): In the third quarter (Q3), Alphabet, the parent company of Google, reported net income of $13.9 billion, a decrease of 27% from the same period in the previous year, while revenue rose by 6% to $69.1 billion.
Alphabet's earnings of $16.9 billion in net profit fell short of Wall Street expectations.
The tech giant made profits of about $16 billion and revenue of almost $69.7 billion in the second quarter (Q2).
Alphabet and Google CEO Sundar Pichai stated, "We are sharpening our focus on a clear set of product and business priorities."
"Product announcements we've made in just the past month alone have shown that very clearly," Pichai said in a statement late on Tuesday. "These include significant improvements to both Search and Cloud, powered by AI, and new ways to monetize YouTube Shorts."
The third quarter's financial results, which were impacted by foreign exchange, reflect solid fundamental growth in Search and momentum in Cloud, according to Ruth Porat, CFO of Alphabet and Google.
Porat continued, "We're working to realign resources to support our highest growth priorities.
To $39.5 billion, Google Search ad sales increased by 4%.
Google Cloud increased from $4.9 billion in Q3 2021 to nearly $6.9 billion in Q3 2022, and advertising brought in $54.4 billion, up from $53.1 billion. In Q3, YouTube ad revenue was slightly down.
According to Pichai, the business has begun the process of increasing efficiency by reallocating resources to capitalise on its most promising growth prospects.
"We have made a number of shifts over the past quarter away from lower priority initiatives to support higher growth priorities. We will add fewer employees in Q4 than we did in Q3. And as we make plans for 2023, we'll continue to make crucial trade-offs where necessary and are committed to containing the growth of operating expenses "said he.
(Inputs from Agencies)

In the third quarter (Q3), Alphabet, the parent company of Google, reported net income of $13.9 billion, a decrease of 27% from the same period in the previous year, while revenue rose by 6% to $69.1 billion.

Alphabet's net profit falls 27% to $13.9 billion, while revenue rises 6%

Mumbai (Maharashtra): With increasing oil prices weighing on traders' sentiments, the rupee plunged to an all-time time low of 82.22 against the US dollar in morning trade on Friday. The traders are also monitoring US payrolls report which is expected today.
Depending on this, the US Federal Reserve's stance on monetary policy could also be influenced. The rupee had closed at 81.88 in the previous session. Government bond yields are expected to open higher on Monday, as concerns over debt supplies may resurface after weaker-than-expected demand at a debt auction on Friday. Bond prices and yields are inversely related. The dollar index, which tracks the greenback versus a basket of six major peers, was little changed at 112.032 following a rally from a two-week low. 
Oil prices rose on the back of a "deep" supply cut by the Organization of Petroleum Exporting Countries (Opec) and its allies, and are set for more volatility. Crude prices are headed for the biggest weekly gain since early of Russia's invasion of Ukraine this year. A weak rupee has driven dollar selling by the Reserve Bank of India to support the currency. But this has raised concerns over India's dwindling foreign exchange reserves. Last week, RBI also raised its repo rate last week in order to rein in the depreciation of the local currency against dollar.
—ANI

With increasing oil prices weighing on traders' sentiments, the rupee plunged to an all-time time low of 82.22 against the US dollar in morning trade on Friday.

Rupee falls to record low against US dollar, slips past 82-mark

Colombo: Amid the ongoing economic crisis in the country, Sri Lanka has cut taxes on female sanitary products in a bid to help women unable to afford the hygiene product, according to reports.
Local media News First citing the presidential media division reported that the "government has taken measures to waive duties imposed on five imported raw materials for locally produced sanitary napkins."
"It (the government) has also been decided to provide tax concessions for imported finished sanitary napkins as well," News First reported further. According to the reports, a price of a pack of 10 sanitary napkins produced locally will be reduced by Rs 50 to Rs 60 with these tax concessions, and the maximum retail price of a pack will be Rs. 260-Rs 270.
The consumer retail prices of imported finished products will be reduced by 18 per cent or 19 per cent.
Sri Lanka continues to reel under a severe economic crisis. Earlier, protesting the dire conditions, Sri Lankan protesters had broken into then Prime Minister Ranil Wickremesinghe's private residence and set it on fire. They were angered by the unprecedented economic crisis.
During those protests, several journalists were also attacked by the security forces after which more protestors gathered in the area. Notably, Sri Lanka is suffering from its worst economic crisis since gaining independence in 1948, which comes on the heels of successive waves of COVID-19, threatening to undo years of development progress and severely undermining the country's ability to achieve the Sustainable Development Goals (SDGs).
The protests came after the worsening economic situation in the country led to increasing tensions and reports of several confrontations between individuals and members of the police force and the armed forces at fuel stations where thousands of desperate members of the public queued for hours and sometimes days amid the fuel crisis.
Sri Lanka has been suffering a diesel shortage since February, which led to hours of daily power cuts. At present, Sri Lanka is struggling with acute food and electricity shortages, forcing the country to seek help from its neighbours.
The island nation is also facing a foreign exchange shortage, which has, incidentally, affected its capacity to import food and fuel, leading to power cuts in the country. The shortage of essential goods forced Sri Lanka to seek assistance from friendly countries.
India has been at forefront of extending economic assistance to Sri Lanka as per their requirements and is one of the countries that have provided the maximum amount of assistance in time of need. In 2022, India extended around USD four billion in bilateral assistance to Sri Lanka. —ANI

Amid the ongoing economic crisis in the country, Sri Lanka has cut taxes on female sanitary products in a bid to help women unable to afford the hygiene product, according to reports.

Sri Lanka Cuts Tax On Female Hygiene Products Amid Economic Crisis

Chennai: Moody's Analytics on Monday predicted the global economy to grow at 2.7 per cent in 2022 and slow to 2.3 per cent in 2023. In its latest report, Moody's Analytics said the global environment is more fragile as record high inflation in the US and Europe continues to gain momentum while growth decelerates. Stagflation risks have risen worldwide, but a stagflationary environment would take months to be realised. Business sentiment remains muted and is consistent with a global economy that is just avoiding recession, Moody's Analytics said. According to the report, the global economy is at a crossroads, as the nascent post-pandemic recovery has quickly morphed into a darker and more fragile environment. Record-high inflation in the US and Europe from supply shortages and surging commodity prices following Russia's invasion of Ukraine are weighing on the global expansion and are compounded by an aggressive monetary policy response. At the same time, China's economy is facing challenges on multiple fronts, including a cooling property market and a buildup of risks in the financial sector. "As a result, global growth fell in the second quarter on an annualised basis for the first time since the depths of the virus outbreak in early 2020, driven by contractions in the US, the UK and China," Moody's Analytics said. According to the report, the performance remains uneven among the world's major economies -- the US, China, Japan, India, and the five largest economies in Western Europe. Outcomes will continue to diverge through 2023 due to differing trade and investment linkages to Russia and Ukraine, particularly in relation to energy products. "Global real GDP (gross domestic product) is forecast at 2.7 per cent in 2022 in the Moody's Analytics September baseline, down from 4.2 per cent in our January forecast. GDP for 2023 has also been revised lower to 2.3 per cent from 3.6 per cent," Moody's Analytics said. "While we project that the global economy will grow in 2022, any policy missteps or additional risks would increase the threat of a global recession in the next 12 months above our current assessment of just over even odds. Downward revisions to 2022 growth projections have been broad-based across countries," Moody's Analytics warned. While the higher food and energy prices benefit net commodity exporters in Latin America, gains will be more than offset by higher inflation and the consequent erosion of consumers' purchasing power. As global recession risks rise, both developing and developed market economies have also seen their currencies depreciate against the US dollar in a flight to quality, which has meant higher import inflation, Moody's Analytics said.&nbsp;
—IANS

Moody's Analytics on Monday predicted the global economy to grow at 2.7 per cent in 2022 and slow to 2.3 per cent in 2023.

 Global economy to grow at 2.7% in 2022, 2.3% in 2023: Moody's Analytics

Moody's Analytics on Monday predicted the global economy to grow at 2.7 per cent in 2022 and slow to 2.3 per cent in 2023.


New York: US stocks fell sharply on Friday as investors continued to worry about even more rate hikes from the Federal Reserve that could land the US economy in a recession, the media reported.
The Dow was down 289 points, or 1 per cent, at the market open. The S&amp;P 500 fell 1.1 per cent and The Nasdaq composite was 1.1 per cent lower, CNN reported.
The Dow opened below 30,000 points, a level it briefly breached Thursday. If the Dow ends the day below 30,000, it would be the first time it closed below that barrier since June 17. And a somewhat more sizable plunge could land the index at on a two-year low on Friday.
Investors do not have many places to make money at the moment: In addition to sinking stocks, the bond market is also selling off, sending US Treasury yields soaring to 11-year highs in recent days.
The 10-year yield fell back a bit on Friday but remains near 3.7 per cent, and the 2-year yield is above 4.1 per cent.
That's a much better return than you can get with stocks these days, so high bond yields are adding pressure on the stock market, CNN reported.
Wall Street also remains concerned that the Fed's rate hiking plan could continue to increase borrowing costs, hurting the corporate profits that support their stock prices.
And if the Fed is serious about slowing the economy down to gain control of runaway inflation, a recession could cause some real pain for consumers who buy the products that publicly traded companies make.
There's much to worry about on Wall Street. CNN Business' Fear and Greed Index has fallen solidly into "Fear" mode in recent days and is nearing "Extreme Fear". Investors don't see much to smile about on the horizon.&nbsp;
—IANS

US stocks fell sharply on Friday as investors continued to worry about even more rate hikes from the Federal Reserve that could land the US economy in a recession, the media reported.

 Dow tumbles as recession fears mount

Mumbai: The Indian rupee fell below 81-mark against the US dollar during the early morning trade for the first time against the US dollar.
This was because of uncertainty created after the uptick in dollar index, increase in policy rate by the US Fed and Bank of England, and escalation in geopolitical tensions between Russia and Ukraine.
Moreover, the negative trends in domestic equities also weighed on sentiments.
At the interbank foreign exchange market, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing.
On Thursday, rupee depreciated 88 paise to close at all-time low of 80.86 against the US dollar.
The Bank of England hiked its base rate by 50 basis points to 2.25 per cent.
The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.28 per cent to 111.412.
A report from ICICI Securities said the Dollar Index may continue with its positive bias as the US Fed decided to raise interest rate by 75 bps, for a third consecutive month and signalled that it would continue to lift rates this year at a most rapid pace to combat inflation, which is running hot.
Additionally, the US Federal Reserve announced it would continue with its plan to shrink its $9 trillion asset portfolio, which plays an important role in firming stance of monetary policy. Additionally, in this year two policy meets are pending, we may see a 75 bps rate hike in November meet and 50 bps in December meeting. Additionally, other major central banks across the globe are likely to lag behind in tightening monetary policy, high inflation and dwindling economic growth.
As long as the Dollar Index sustains above 107.50 level it may continue to rally till 113/114 levels.&nbsp;
—IANS

The Indian rupee fell below 81-mark against the US dollar during the early morning trade for the first time against the US dollar.

Rupee slips first time below 81-mark against US dollar

Mumbai: India's benchmark indices ended up on Monday with Sensex rising more than 300 points and Nifty ending over 90 points. At close, Sensex ended 300.44 points, or 0.51 per cent, up at 59,141.23, and Nifty closed up 91.40 points, or 0.52 per cent, at 17,622.45. Mahindra &amp; Mahindra, Bajaj Finance, Hindustan Unilever, State Bank of India, and Nestle were major gainers on the Sensex. Nifty FMCG ended 1.07 per cent up, BSE Auto up 0.78 per cent and BSE IT O.30 per cent up, respectively. "Markets managed to gain over half a percent in a volatile trading session, taking a breather after the recent slide. The Nifty index witnessed a swift rebound in the first hour after the initial fall and remained range bound thereafter. Meanwhile, the sectoral trend was mixed wherein banking, FMCG and auto witnessed buying interest while realty, energy, and metal were on the back foot," said Ajit Mishra, VP - Research, Religare Broking Ltd. Asian stocks had a mixed day as traders remained cautious awaiting a slew of interest rate decisions in the days ahead and after global equities notched their worst week since hitting this year's low in June. Going forward, as per Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, markets are likely to remain range-bound ahead of US Fed interest rate decision to be announced September 21 (Wednesday). While it is widely expected that Fed will go for at least 75 basis points hike, however given the stubbornness of US inflation and robust numbers from US data points like retail sales and a strong labour market, there is a high chance that the aggressive stance towards rate hike is likely to continue for a prolonged time. Even the Bank of England is likely to announce a 50bps rate hike to combat inflation and could keep global markets under pressure. US 2-Year bond have spiked to 15-year high at 3.9 per cent while 10-year bond is hovering at 3.4 per cent, thus implying that the short term pain could continue in the global markets. "Back home, Indian markets is better placed compare to the other global markets due to its strong macro factors, strong government policy implementation and oil price falling to 7-month. This well reflected in today's Nifty outperformance to global market as well," said Khemka.&nbsp;
—IANS

India's benchmark indices ended up on Monday with Sensex rising more than 300 points and Nifty ending over 90 points.

 Indices ends higher, Sensex up more than 300 points

Mumbai: The Indian rupee ended almost flat against the US dollar on Monday, with just 3 paise fall, at 79.77. At the interbank foreign exchange market, rupee ended at 79.77, against 79.74 on the previous trading session against the US dollar. "A mostly lacklustre day, as demand from oil marketing companies and supply from exporters balanced the market. Over this week, the market moving event will be Fed meeting, where the central bank is expected to hike by 75 bps and sound quite hawkish," said Anindya Banerjee, VP, Currency Derivatives &amp; Interest Rate Derivatives at Kotak Securities Ltd. Dollar index, which gauges the the strength of greenback against the basket of six major currencies, was at 109.870. Brent crude oil prices were at $90.02 a barrel by the closing of Indian market hours. Dilip Parmar, Research Analyst, HDFC Securities, said that the rupee becomes an outlier among the Asian currencies amid the foreign fund inflows, lower crude oil prices and risk-on sentiments. "King Dollar has been on a rampage against the Chinese yuan and further weakening of the yuan will be a dangerous sign for risk markets and Asian currencies. Along with the weak regional currencies, the rupee depreciated against the US dollar for the fourth day in a row. However, the momentum remained lacklustre in the rupee as the economy is better placed among Asian countries," he said. On the overseas front, risk assets extend declines and the dollar rallies against major trading partners ahead of a busy week for global central banks. "In the near term, spot USDINR is expected to trade in the range of 79.05 to 79.90," Parmar added. Meanwhile, benchmark indices ended up on Monday with Sensex rising more than 300 points and Nifty by over 90. At close, Sensex ended 300.44 points, or 0.51 per cent, up at 59,141.23, and Nifty closed up 91.40 points, or 0.52 per cent, up at 17,622.45. Mahindra &amp; Mahindra, Bajaj Finance, Hindustan Unilever, State Bank of India, and Nestle were major gainers on the Sensex. —IANS

The Indian rupee ended almost flat against the US dollar on Monday, with just 3 paise fall, at 79.77.

 Rupee ends almost flat, at 79.77, against the US dollar

Beijing: Asian markets skidded lower on Wednesday after Wall Street fell the most since June 2020 as a report showed inflation has kept a surprisingly strong grip on the US economy.
Most regional benchmarks fell more than 2 per cent, but were holding steady.
US futures edged higher, with the contracts for the Dow industrials and the S and P 500 up 0.2 per cent. European futures were lower.
A report on Tuesday showed US inflation decelerated only to 8.3 per cent in August, instead of the 8.1 per cent economists expected.
That dashed hopes that inflation was falling back to more normal levels after peaking in June at 9.1 per cent, allowing the Federal Reserve to moderate its interest rate hikes.
Tensions between the US and China also were weighing on sentiment. Chinese leader Xi Jinping and Russian President Vladimir Putin are due to meet later in the week, underscoring the countries' warming ties as the West pushes ahead with sanctions against Moscow for its invasion of Ukraine.
The meeting on Thursday in Samarkand, Uzbekistan, on the sidelines of a summit of a security pact dominated by Moscow and Beijing, reflect the strong ties between the former Communist rivals now locked in rivalry with the US.
The US is meanwhile reportedly considering new sanctions against Beijing aimed at deterring aggression against Taiwan, a self-governed island democracy that China claims as its own territory.
Hong Kong's Hang Seng index lost 2.6 per cent to 18,831.88 and the Shanghai Composite index declined 0.9 per cent, to 3,234.18.
Tokyo's benchmark Nikkei 225 lost 2.2 per cent to 27,991.82, while Sydney's S and P/ASX 200 declined 2.4 per cent to 6,839.50. In Seoul, the Kospi lost 1.5 per cent to 2,414.26.
On Tuesday, the Dow lost more than 1,250 points and the S and P 500 sank 4.3 per cent to 3,932.69. The Dow fell 3.9 per cent to 31,104.97 and the Nasdaq composite closed 5.2 per cent lower, at 11,633.57.
Bond prices also fell sharply, sending their yields higher. The yield on the two-year Treasury, which tends to track expectations for Fed actions, soared to 3.74 per cent from 3.57 per cent late on Monday.
The 10-year yield, which helps dictate where mortgages and rates for other loans are heading, rose to 3.42 per cent from 3.36 per cent.
Traders are bracing for the Federal Reserve to ultimately raise interest rates more than expected to combat inflation, with all the risks for the economy that entails. Most of Wall Street came into the day thinking the Fed would hike its key short-term rate by a hefty three-quarters of a percentage point at its meeting next week and then reduce the size of its rate hikes through the end of this year, potentially holding steady through early 2023.
Traders now see a one-in-three chance the Fed will hike the benchmark rate by a full percentage point next week, quadruple the usual move. No one in the futures market was predicting such a hike a day earlier.
The Fed has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. The federal funds rate is currently in a range of 2.25 per cent to 2.50 per cent.
Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else usually purchased on credit. Mortgage rates have already hit their highest level since 2008, creating pain for the housing industry.
The hope is that the Fed can pull off the tightrope walk of slowing the economy enough to snuff out high inflation, but not so much that it creates a painful recession.
Tuesday's data casts doubt on hopes for such a soft landing . Higher rates also hurt prices for stocks, bonds and other investments. Expectations for a more aggressive Fed have also helped the dollar add to its already strong gains for this year. The dollar has been surging against other currencies in large part because the Fed has been hiking rates faster and by bigger margins than many other central banks.
That's especially true for Japan, where the benchmark rate remains at minus 0.1 per cent.
The dollar bought 144.56 Japanese yen, down from 144.57 yen late on Tuesday. The euro rose to 0.9983 cents, up from 0.9969 cents.
US benchmark crude added 22 cents to USD 87.53 per barrel in electronic trading on the New York Mercantile Exchange. It lost 47 cents to USD 87.31 on Tuesday. Brent crude, the international pricing standard, climbed 15 cents to USD 93.32 per barrel.—AP

Asian markets skidded lower on Wednesday after Wall Street fell the most since June 2020 as a report showed inflation has kept a surprisingly strong grip on the US economy.

Asian Shares Fall, Tracking Wall St Dismay Over Price Data

Mumbai: Benchmark Sensex declined 224 points on Wednesday, snapping its four-session winning streak, mainly due to sell-off in IT and pharma counters amid rising concerns over possible aggressive interest rate hikes to tame high inflation.
The 30-share index rebounded more than 1,200 points from the early lows before settling at 60,346.97 points, a total loss of 224.11 points or 0.37 per cent compared to Tuesday's closing level.
The broader NSE Nifty closed lower 66.30 points or 0.37 per cent at 18,003.75 points.
With the higher than expected inflation reported in the US in August, there are now concerns that the US Federal Reserve is likely to go for aggressive rate hikes, pushing global markets into the red. The Sensex had plunged 1,150 points to a low of 59,417.12 points while the Nifty declined to a low of 17,771.15 points in early trade on Wednesday following deep losses in US markets.
Gains in banking shares helped the indices recover from early lows but selling in IT, energy and pharma shares restricted the gains.
Infosys fell the most by 4.53 per cent among the Sensex scrips. TCS, Tech Mahindra, HCL Tech, L&amp;T, Wipro, and Reliance were among the major losers. IndusInd, PowerGrid, NTPC, SBI, Kotak Bank and HDFC twins advanced.
On the domestic front, the wholesale price-based inflation eased for the third consecutive month in August to 12.41 per cent on softening in prices of manufactured items. However, August was the 17th consecutive month of double-digit wholesale price inflation.
Global stock markets also declined following overnight losses at Wall Street as higher-than-expected inflation fanned rate hike fears. European benchmarks were marginally lower while Asian markets witnessed steeper losses.
The US inflation slowed only to 8.3 per cent in August, instead of the 8.1 per cent economists expected.
Germany's DAX lost 0.2 per cent and France's CAC 40 gave up 0.3 per cent while the UK's FTSE 10 shed 0.7 per cent.
Tokyo's benchmark Nikkei 225 lost 2.8 per cent, Hong Kong's Hang Seng index fell 2.3 per cent, and the Shanghai Composite index declined 0.8 per cent.
Foreign institutional investors pumped in Rs 1,956.98 crore into domestic equities on Tuesday, as per data available with BSE.—PTI

Benchmark Sensex declined 224 points on Wednesday, snapping its four-session winning streak, mainly due to sell-off in IT and pharma counters amid rising concerns over possible aggressive interest rate hikes to tame high inflation.

Sensex, Nifty Snap Four-day Rally; Rate Hike Fears Spook Investors

Mumbai: Benchmark indices erased some early losses on Monday but continued to trade lower with Sensex down more than 800 points and Nifty down 250 points.
At 10.50 a.m., Sensex was trading 835.72 points or 1.42 per cent down at 57,958.15 and Nifty was trading 250.30 points or 1.43 per cent down at 17,308.60.&nbsp;
HCL Technologies, Infosys and Tech Mahindra were trading down more than 3.5 per cent on the BSE.
On Friday, Federal Reserve Chair Jerome Powell signalled the US central bank is likely to keep hiking interest rates and keep them elevated to tame inflation.
"Restoring price stability will likely require maintaining a restrictive policy stance for some time," Powell said. "The historical record cautions strongly against prematurely loosening policy," he added.
"Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labour market conditions. While higher interest rates, slower growth, and softer labour market conditions will bring down inflation, they will also bring some pain to households and businesses," Powell added.&nbsp;
—IANS

Benchmark indices erased some early losses on Monday but continued to trade lower with Sensex down more than 800 points and Nifty down 250 points.

 Indices erase early trading losses, but still trading lower

New Delhi (The Hawk): Hindustan Petroleum Corporation Ltd. unveiled its branded store “Happy Shop” in the National Capital on Wednesday. The store was inaugurated at Servicircle outlet, Mathura Road today by HPCL’s Chairman and Managing Director, Sh. Pushp Kumar Joshi in the presence of ED – Retail, Mr. Sandeep Maheshwari and other Senior Officials and citizens of the locality. In pursuit of enhancing customer experience on a continuous basis, HPCL is ever expanding the bouquet of services being offered to its esteemed customers. “Happy Shop” is the latest offering in this series, which marks its push into non-fuel retailing in a big way. Here, HPCL has gone in for the “Harmonized Retail” approach that will have an amalgamation of online and physical stores to provide a superior shopping experience to its esteemed customers.
The “You need it, we have it” kind of product range in the Servicircle store (Mathura Road) is meticulously selected to suit the tastes and preferences of the local neighborhoods. The store will stock home utility products including food, toiletries, healthcare products, bakery products, groceries, vegetables and more – available to customers at competitive prices. It is also equipped with advanced digital technology to give a seamless shopping experience to the customers. Along with the experience of physical store, it has the option of online shopping with a door delivery model. Customers will be able to browse &amp; shop the merchandise on HPCL’s “HP Pay App” (available on IOS &amp; Play store) and have goods delivered to their homes. The services will be available 24X7.
While inaugurating the Delhi “Happy Shop”, Sh. Pushp Kumar Joshi said, “ The store would endeavor to make a significant difference to the experience of the customers and live up to our motto of ‘Delivering Happiness’. The customer response to our retail venture has been very encouraging. HPCL is set to accelerate the growth of “Happy Shop” network in the country would be setting up 20 such stores in the current fiscal.”
The company decided to set up its own chain of multi-channel retail stores late last year and at present, 10 “Happy Shops” are running in cities like Mumbai, Kolkata, Chennai, Ahmedabad, Bengaluru and Coim-batore. These shops are creating their own space in the highly competitive organized retailing sector.

 Hindustan Petroleum Corporation Ltd. unveiled its branded store “Happy Shop” in the National Capital on Wednesday. 

HPCL Enters Into The Delhi Retail Market With The Launch Of Its First HaPpyShop

New Delhi: Gold prices eased by Rs 60 to Rs 52,811 per 10 grams in the national capital on Wednesday in line with losses in the precious metal in the global markets, according to HDFC Securities. The precious metal had closed at Rs 52,871 per 10 grams in the previous trade. Silver declined by Rs 575 to Rs 58,985 per kg from Rs 59,560 per kg in the previous trade. The rupee appreciated by 11 paise to 79.52 against the US dollar in afternoon trade on Wednesday on easing crude oil prices and foreign fund inflows. In the international market, gold was quoting lower at USD 1,789 per ounce while silver was flat at USD 20.35 per ounce. "Gold prices traded weak with spot gold prices at COMEX trading at USD 1,789 per ounce on Wednesday," said Tapan Patel, Senior Analyst (Commodities) at HDFC Securities. —PTI

Gold prices eased by Rs 60 to Rs 52,811 per 10 grams in the national capital on Wednesday in line with losses in the precious metal in the global markets, according to HDFC Securities

Gold prices fall by Rs 60, silver declines Rs 575

Mumbai:&nbsp;The rupee fell 40 paise to close at 79.64 (provisional) against the US dollar on Monday amid waning risk appetite among investors.Lower global crude prices and a rally in domestic equities restricted the losses to some extent, forex dealers said.At the interbank foreign exchange market, the domestic currency opened weak at 79.50 per dollar. It oscillated between a high of 79.45 and a low of 79.65 during the session.It finally settled at 79.64, down 40 paise over its previous close of 79.24.The dollar index, which measures the greenback's strength against a basket of six currencies, slipped 0.25 per cent to 106.57.Brent crude futures, the global oil benchmark, declined 0.54 per cent to USD 94.38 per barrel.On the domestic equity market front, the BSE Sensex ended 465.14 points or 0.80 per cent higher at 58,853.07, while the broader NSE Nifty advanced 127.60 points or 0.73 per cent to 17,525.10.Foreign institutional investors remained net buyers in the capital market on Friday as they purchased shares worth Rs 1,605.81 crore, as per exchange data.After turning net buyers last month, foreign investors continued their positive stance on Indian equities and invested over Rs 14,000 crore in the first week of August amid softening of the dollar index.This was way higher than the net investment of nearly Rs 5,000 crore by Foreign Portfolio Investors (FPIs) in the entire July, data with depositories showed.—PTI

The rupee fell 40 paise to close at 79.64 (provisional) against the US dollar on Monday amid waning risk appetite among investors

Rupee falls 40 paise to close at 79.64 against US dollar

New Delhi: Leading digital payments and financial services company&nbsp;<a href="https://www.business-standard.com/topic/paytm" rel="noopener noreferrer" target="_blank" style="color: rgb(37, 145, 220);">Paytm</a>&nbsp;has received positive feedback from top&nbsp;<a href="https://www.business-standard.com/topic/brokerages" rel="noopener noreferrer" target="_blank" style="color: rgb(37, 145, 220);">brokerages</a>&nbsp;such as Goldman Sachs, JP Morgan, Morgan Stanley, ICICI Securities, Yes Securities and CLSA after reporting its Q1FY23 financial results.In their brokerage notes, they highlighted Paytm's strong growth in revenue and contribution margins during the quarter in addition to sharp improvement in net payment margins.In its note,&nbsp;<a href="https://www.business-standard.com/topic/goldman-sachs" rel="noopener noreferrer" target="_blank" style="color: rgb(37, 145, 220);">Goldman Sachs</a>&nbsp;said that the company "remains firmly on the path to profitability" following its Q1FY23 results.The brokerage also raised its EBITDA estimates for&nbsp;<a href="https://www.business-standard.com/topic/paytm" rel="noopener noreferrer" target="_blank" style="color: rgb(37, 145, 220);">Paytm</a>&nbsp;and believes that Patytm's Q1FY23 results should "help provide more visibility to investors" on the company's profitability target."We believe Paytm's 1QFY23 results should help provide more visibility to investors on the company's path to profitability (adjusted EBITDA improved 25 per cent q-o-q and was 14 per cent better vs GSe), and we view this as a key catalyst for the stock. Revenue growth at 89 per cent YoY in 1QFY23 remains elevated, and while we expect a deceleration in growth in subsequent quarters, we forecast a robust 37 per cent FY22-25E revenue CAGR for Paytm, at the higher end of global fintech peers," the brokerage firm elabolated.<a href="https://www.business-standard.com/topic/goldman-sachs" rel="noopener noreferrer" target="_blank" style="color: rgb(37, 145, 220);">Goldman Sachs</a>&nbsp;maintains its 'Buy' rating for the stock with a revised target price of Rs 1,100.JP Morgan also welcomed Paytm's Q1FY23 financial results, citing sharp revenue growth (over 89 per cent y-o-y and 9 per cent q-o-q) and contribution margin (43 per cent +830bps q/q).It said the sharp margin improvement was driven by a reduction in payment processing charges resulting in expansion of payments business profitability (35 per cent gross margin, 10bps net MDR)."The contribution margin print in 1Q is what we had assumed to happen in late F24/25. Incremental contribution margin in the business is running at 60 per cent (on YY basis) suggesting further improvement ahead," the brokerage added.Analysts at JP Morgan also highlighted lower processing costs for the quarter, which have driven payment margin improvement.The brokerage said that Paytm's financial services business remains strong andA revenue growth in this segment at 60 per cent (q-o-q) "is tracking ahead of expectations and seen in continued traction for the company's loan syndication business".The brokerage maintains its aOverweight' rating for the stock with a target price of Rs 1,000.ICICI Securities said that&nbsp;<a href="https://www.business-standard.com/topic/paytm" rel="noopener noreferrer" target="_blank" style="color: rgb(37, 145, 220);">Paytm</a>&nbsp;continues to improve its margins, with losses coming down sequentially.The brokerage said that the company's Q1FY23 results was characterised by: A) reduction in payment processing charges leading to improvement in net payment rates; B) continued acceleration in lending business with disbursements of Rs 56 billion; C) enhanced contribution/adjusted-EBITDA (before ESOP cost) margins due to increased net payment rates and rising contribution of financial services revenue; D) sustained growth in monthly transacting users (MTUs) and deployment of offline devices and strong QoQ growth in gross merchandise value (GMV).The brokerage continued to maintain its 'Buy' rating for the stock with a target price of Rs 1,285.Yes Securities said in its brokerage report that it acknowledges improvement in Paytm's trajectory after the company's Q1FY23 financial results. Some of the factors that led to this improvement include strong growth in revenue from operations and significant improvement in contribution profit.While the brokerage said it "awaits delivery and sustenance of profitability", it highlighted that the company continues to show improvement with strong growth in payments services revenue, net payments margin and contribution margin.With this, the brokerage has now upgraded its rating for the Paytm stock to 'Neutral' with a target price of Rs 850.Morgan Stanley said that Paytm registered another strong quarter with revenue growth in Q1FY23 at almost 90 per cent y-o-y, led by better than expected take rates in both payments and financial services.The brokerage noted that the key highlight during the quarter was sharp improvement in contribution margin, which increased to 43 per cent of revenues in comparison to 35 per cent in Q4FY2022.The brokerage has increased its target price for the Paytm stock to Rs 785 with an equal-weight rating.CLSA summed up Paytm's results by saying that the company put up a "good show" during the quarter.In its note, the brokerage said Paytm's Q1FY23 was a "continuation of prior quarter trends" with healthy GMV growth, while cross-selling of merchant devices and loan distribution "remains the key focus and incremental driver of EBITDA breakeven"."Most P&amp;L numbers were largely in line with our expectations, while payment processing costs were significantly lower. This led to 13 bp net take-rate in 2QFY23 itself, while we were expecting it to happen in FY24," it added.The brokerage has increased the target price of the Paytm stock to Rs 650.Paytm started the new fiscal year with 89 per cent (year-on-year) revenue growth in Q1FY23 at Rs 1,680 crore, while EBITDA (before ESOP) loss reduced to Rs 275 crore, marking an improvement of Rs 93 crore (on-quarter).The company's contribution profit grew 197 per cent Y-o-Y to Rs 726 crore, leading to an increase in contribution margin to 43 per cent of revenues in comparison to 35 per cent in Q4FY22.Its user engagement, measured by monthly transacting users (MTU), grew 49 per cent (on-year) to 74.8 million during the quarter, while the total devices deployed increased to 3.8 million (2.8 million added in the past 12 months).Paytm's payments services revenue grew by 69 per cent y-o-y, while revenue from financial services grew 393 per cent y-o-y during the quarter, led by massive growth in Paytma¿s loan distribution business.During the quarter, Paytm disbursed 8.5 million loans, representing a growth of 492 per cent Y-o-Y and 30 per cent Q-o-Q.The value of the loans disbursed stood at Rs 5,554 crore, marking a growth of 779 per cent Y-o-Y or 56 per cent Q-o-Q.Moreover, the company has now reached an annualized run rate of approximately Rs 24,000 crore of loan disbursements through its platform, with significant upside potential from increasing penetration.—IANS

Leading digital payments and financial services company Paytm has received positive feedback from top brokerages such as Goldman Sachs, JP Morgan, Morgan Stanley, ICICI Securities, Yes Securities and CLSA after reporting its Q1FY23 financial results.

On Tuesday, Indian stock markets reached fresh highs

Pankaj Sharma

More about Market