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Market Ahead with EZWealth – 6 Oct 2021, Wednesday
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Benchmark indices took the upward rally forward, propelling NIFTY 131 points up to close above 17800 and SENSEX about 450 points, just 300 points shy of the 60000-mark.
Sectorally, selling pressure was visible in metals, FMCG, Pharma, PSU Bank and realty indices while buying interest was seen in auto, IT, media, banking, and financial stocks.
Foreign portfolio investors (FPIs) remained net sellers for Rs 1915.08 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1868.23 crore
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Stories in the news today:
1) Moody’s Investors Service on Tuesday changed its outlook on India’s sovereign ratings to stable from negative. However, it retained the ratings, both on foreign and domestic currencies, at the lowest investment grade. Experts said this would have a beneficial impact on debt allocations by foreign portfolio investors (FPIs) to Indian papers.
“The decision to change the outlook to stable reflects Moody’s view that the downside risks from negative feedback between the real economy and financial system are receding,” said the ratings agency.
Now, Moody’s and Standard & Poor’s have a stable outlook on their ratings on India, while Fitch still has a negative outlook. All three rating agencies have given India the lowest investment grade.
2) The Department of Telecommunications (DoT) on Tuesday told the Supreme Court it was reconsidering its decision to proceed with an appeal filed against a tribunal order in April 2019 on recovering one-time spectrum user charges (SUCs) of Rs 40,000 crore from telecom companies. It asked the court to give the government three weeks so that it could take an “informed decision” whether to proceed with its appeal against an order by the Telecom Disputes Settlement and Appellate Tribunal.
The Supreme Court adjourned the hearing for November 19. After the Supreme Court had cancelled 2G spectrum licences, the DoT after 2012 sent notices to operators, demanding charges for the spectrum allocated under administrative pricing. It had two components — one, retrospective demand from July 1, 2008, to December 31, 2012, for any spectrum held beyond 6.2 MHz; and two, prospective demand from January 1, 2013, to the expiry of spectrum beyond 4.4 MHz.
The TDSAT, in July 2019, cancelled the retrospective demand the DoT had made. However, it allowed the DoT to levy one-time spectrum charges beyond 6.2 MHz on a prospective basis.
3) As fuel prices surged to all-time highs on Tuesday, Union Finance Minister Nirmala Sitharaman said prices of petroleum products in the country depend on international oil rates and both the Centre and states have to together handle the issue of their rising cost.
Addressing a press conference at the Chhattisgarh BJP office Kushabhau Thakre Parisar here, she said prices of petroleum products in India, a big consumer of these imported items, depend on their prevailing rates in the global market.
Hence, both the Centre and states have to handle the fuel issue together as they impose taxes on oil products, Sitharaman said. She was replying to a question about the rising prices of petrol, diesel and cooking gas in the country.
4) The Indian rupee and bond prices fell on Tuesday as crude prices shot up to a seven-year high, pulling down stocks globally and firming up the dollar index.
The rupee closed at 74.44 a dollar after staging a comeback from its intraday low of 74.6325 a dollar. However, it was down from its previous close of 74.31. The dollar index, which measures the greenback’s strength against major global currencies, crossed 94 — its highest level since November 2020.
Despite that, a strong performance by the local stock index helped stem the rupee loss. Dealers say domestic investors filled in the space left by foreign investors. The BSE Sensex closed up by 445 points, or 0.75 per cent, at 59,744.88 points even as Nasdaq had fallen over 2 per cent overnight.
The 10-year bond yield closed at 6.261 per cent, up from its previous close of 6.248 per cent. In the intraday trade, the bond yields had crossed 6.27 per cent, fearing widening fiscal deficit and rising inflation as the crude prices firmed up.
5) India’s cryptocurrency market grew 641% over the past year and Pakistan’s 711%, a report from Chainalysis showed, using a metric that estimates the total cryptocurrency received by a country.
India has a 59% share of activity taking place on decentralized finance (DeFi) platforms, with Pakistan at 33%, the report said, adding there’s been a significant increase in cryptocurrency-related entrepreneurship and venture capital investment in the region. “Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42% of transactions sent from India-based addresses, versus 28% for Pakistan and 29% for Vietnam,” the report said. “Those numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organizations.”
Stocks in the news today:
TVS Motor Company, India’s third largest two-wheeler maker, has entered into a strategic partnership with Tata Power for putting up electric vehicle charging infrastructure (EVCI) in India. A memorandum of understanding between the two companies speaks of deploying solar power technologies at TVS Motor’s select locations. The partnership aims to create a large dedicated electric two-wheeler charging infrastructure to accelerate electric mobility in India.
Axis Bank: The private lender claimed that it has become the first Indian private sector lender to arrange a term Secured Overnight Financing Rate (SOFR) linked trade financing deal.
Bharti Airtel: The telecom operator and equipment maker Ericsson said they have conducted India’s first 5G network trial in a rural location, demonstrating the potential that 5G can unleash in bridging the digital divide.
Zee Entertainments Enterprises: The National Company Law Tribunal (NCLT) directed the media major to submit reply on a petition filed by Invesco and OFI Global China by Thursday.
Cadila Healthcare: The drug firm said it has received permission from the Indian drug regulator for conducting phase III trials for its two-dose COVID-19 vaccine ZyCoV-D.
Coal India: The state-run miner said its board has approved a pre-feasibility report for setting up an integrated aluminum project in Odisha. It had got in-principle approval for venturing into aluminum and solar sectors and creation of special purpose vehicles.
Godrej Consumer Products: The FMCG major said it expects to deliver “high single-digit sales growth” on a consolidated basis in the July-September period.
Canara Bank: The state-owned lender announced an up to 15 basis points cut in its marginal cost of funds based lending rate (MCLR). The bank has decided to reduce the MCLR for one-year tenor by 10 basis points to 7.25 per cent effective from October 7.
Marico: With reducing COVID-19 cases and accelerated vaccination drive leading to increased mobility levels driving up demand trends, the FMCG major said its revenue growth in the quarter ended September 30, 2021, was in “the low twenties”
Jammu & Kashmir Bank: The Reserve Bank of India extended the term of R K Chhibber, Chairman and Managing Director of the PSU lender by a further period of six months.
IDFC First Bank: The private lender said it has posted 9.75 per cent growth in advances at Rs 1,17,243 crore for the second quarter ended September 30, 2021. Gross Funded Assets stood at Rs 1,06,828 crore at the end of the second quarter of 2020-21.
Sugar Stocks: Sugar mills exported an estimated record 7.23 million tonne in the 2020-21 marketing year that ended September 30, with maximum shipments to Indonesia, trade body AISTA said.
Hinduja Global Solutions: Aasia Corporation LLP, and Aasia Exports, promoter of the company, have offloaded shares of the firm worth over Rs 102 crore through open market transactions.
Future Retail: The Kishore Biyani led company terminated Master Franchise Agreement with 7-Eleven stores, citing the inability to meet the target of opening stores and payment of franchisee fees.
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