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Market Ahead with EZWealth – 5 Oct, 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The benchmark indices gained on Monday after four days of continuous decline, as investors waiting on the sidelines bought stocks despite weak global cues. Gains in heavyweights like Reliance Industries, TCS, and other IT and banking majors helped the indices close higher.
Optimism regarding the September quarter earnings and hopes of the continuation of a dovish monetary policy tickled investors’ enthusiasm. The Sensex ended the session at 59,299, a gain of 533 points or 0.9 per cent. The Nifty50, on the other hand, closed at 17,691, up 159 points or 0.9 per cent.
Losses in technology stocks pushed the Nasdaq lower by 2.3%. Apple fell 2.3% and Microsoft fell 2.5%. Big communication companies also slipped. Facebook fell 4.2%.
Meanwhile, European stocks fell amid concerns about slowing growth and high inflation. Investors have become wary of risky assets as recovery faces hurdles due to commodity shortages, an energy crunch, and persisting inflation. The Federal Reserve’s decision to start unwinding in the bond purchase programme is not helping sentiment either.
The Asian markets were mixed on Monday, with Hong Kong’s benchmark down more than 2 per cent after troubled property developer China Evergrande’s shares were suspended from trading. The markets were closed for holidays in Shanghai and South Korea.
Indian indices likely to open lower on weak global cues; Nikkei index down over 3%, and SGX Nifty trade with a loss of 130 pts at 17580
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News today:
The Centre has ordered a multi-agency probe into the offshore secrets of wealthy elites unravelled in Pandora Papers—the latest leak of offshore financial records. The complex ownership structures and ringfencing of wealth in the records will be scrutinised by a group headed by the chairman of the Central Board of Direct Taxes (CBDT). The government will work along with foreign jurisdictions to obtain information on individuals named in the list.
The list of around 300 Indians in the Pandora Papers includes Anil Ambani, Vinod Adani, Niira Radia, Sachin Tendulkar, Jackie Shroff and Satish Sharma among others. Many of those featured in the list have denied any wrongdoing.
The relevant agencies would undertake investigation in these cases and appropriate action would be taken as per law, the Finance Ministry said on Monday. With a view to ensure effective investigation in these cases, the government will also proactively engage with foreign jurisdictions for obtaining information in respect of relevant taxpayers/entities, the ministry said.
Ahead of the peak festive season, India’s passenger vehicle makers are staring at a cumulative order backlog of nearly 500,000 units as chip shortage continues to cripple production. The crisis is forcing companies to change their production plans frequently and take a call on the variants they can manufacture based on the availability of semiconductors. The booking numbers are not a true reflection of demand, said manufacturers. Owing to long waiting periods, which are only getting stretched, buyers are booking multiple brands, and not all of it would translate into sales.
The RBI superseded the boards of Srei Infrastructure Finance and Srei Equipment Finance, which will be taken for insolvency proceedings owing to governance concern and payment defaults by them. This is the second instance of the RBI superseding a finance firm’s board. Earlier, it had taken such action in the case of mortgage lender DHFL, which is now after successful resolution under the wing of Piramal Enterprises. According to estimates, banks have about a Rs 28,000-crore exposure to Srei and bond holders another Rs 18,000 crore. Analysts expect a steep haircut as part of the resolution. A Srei spokesperson said the company was “shocked” at the decision and would pursue all legal options.
Billionaire Gautam Adani said his infrastructure conglomerate will invest between USD 50-70 billion in organic and inorganic growth opportunities across the entire energy value chain over the next decade. This will include investments with potential partners for electrolyzer manufacturing, backward integrations to secure the supply chain for our solar and wind generation businesses, and AI-based industrial cloud platforms. He however did not give details of the areas where the investment will be made. “Adani Group is not sitting still. We are tripling our solar power generation capacity over the next four years. This is a rate of growth currently unmatched by any other company anywhere on the planet,” he said.
Demand for work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS) and person days of work generated under it have both fallen to hit their 17-month lows in September this year, possibly indicating revival of economic activities in urban centres. Official data showed only 2.86 crore persons demanded work in September compared with 3.59 crore in March 2021, 4 crore in April, 4.15 crore in May, 5 crore in June, 4.26 crore in July and 3.21 crore in August. The number of persons demanding work under the popular scheme had hit a nadir in April 2020 (2 crore) but jumped in May (5.4 crore) immediately after the lock-down was eased; the demand peaked in June 2020 (6.35 crore). In March, 2020, 2.76 crore only persons demanded work.
Stocks in the news:
US pharma giant Eli Lilly joined hands with with Mumbai-based Cipla to market its insulin products in India. The two companies announced a strategic partnership in India to enhance the reach of Lilly’s diabetes products – Humalog (Insulin Lispro) and Trulicity (Dulaglutide). As part of this agreement, Lilly will transfer its rights in India to sell, promote and distribute the two Lilly diabetes products – Humalog and Trulicity to Cipla, subject to all regulatory approvals, Lilly said in a statement.
Max Healthcare Institute on Monday said it plans to invest around Rs 1,600 crore to expand its capacity in the national capital region by adding around 1,000 beds in Gurugram, Haryana.
Srei Infrastructure: The Reserve Bank of India on Monday superseded the board of directors of Srei Infra and Srei Equipment Finance Ltd, owing to governance concerns and defaults by SREI Group Companies. RBI appointed Rajneesh Sharma, the former chief general manager at Bank of Baroda, as administrator.
Biocon: Biocon Ltd on Monday announced the launch of Everolimus tablets, a generic version of Afinitor, in the US. Everolimus (Afinitor) is a prescription medication that is used to treat certain types of cancers and tumours. The commercial launch of Everolimus follows an US FDA approval in February 2021.
Macrotech Developers: Mumbai-based real estate firm Macrotech Developers on Monday said properties worth ₹1,100 crore were sold last month in one of its London projects and that it expects to sell the entire inventory before the 2023-24 fiscal year. The company said that in September, the project achieved Pre Sales of £110 million ( ₹1,100 crore).
ZEEL: NCLT is to hear Invesco’s plea in its spat with Zee Entertainment Enterprises Ltd on Tuesday. Invesco on Monday urged the National Company Law Tribunal (NCLT) to pass an order to ensure the convening of the company’s Extraordinary General Meeting (EGM). After hearing the matter for some time on Monday, the tribunal adjourned the proceedings for Tuesday.
Nalco: There was an unconfirmed report about Niti Aayog recommending the privatization of Nalco along with another aluminium major.
Tata Motors: The Tata Punch has been finally unveiled in India and the carmaker has already started accepting booking for a token amount of up to ₹21,000. It’s the first Tata SUV underpinned by the ALFA-ARC (Agile Light Flexible Advanced Architecture) platform and is based on the brand’s Impact 2.0 design language. The price announcement is likely to happen around festive season and it will be positioned below the Nexon subcompact SUV in the line-up.
Domestic telecom gear maker HFCL on Monday said it has bagged an order of Rs 286.96 crore from RailTel Corporation for setting up a data communication network for the defence forces. The order is to be executed within a year
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