Sensex Today | Share Market Live Updates: Sensex, Nifty turn flat; M&M drags; Asian Paints shine

Stock markets around the world are headed for a correction in the upcoming months, carrying ahead their weakness from 2022, according to the majority of analysts polled by Reuters.

However, most global equity indices are expected to record marginal gains by year-end from current levels, according to the poll.

A 71% majority of analysts, 55 of 77, who answered an additional question in the August 9-23 poll said a correction by year-end in their local equity market was either likely or very likely. The remaining 22 said unlikely or very unlikely. (Read More)

Himanshu Singh – Research Analyst, Prabhudas Lilladher Pvt Ltd Stock Update – TVS Motor – TVS X EV – Launch of a niche market offering

TVS Motor [TVSL IN| TP: INR1,400 | ACCUMULATE]

TVS Motor introduced its new premium EV product “TVS X” at an introductory price of Rs. 2,49,999. It offers several first-in-the-segment tech and safety features.

PL View: “The product has several segment first features and is positioned as a premium offering when compared to the current EV scooter market in India, it will most likely be focused on the global side to gain traction. TVS could use its strong presence in the global market and also leverage its recent acquisition in the Europe region to showcase the product. Given its premium features and positioning, it’s intended for a niche market segment and we don’t expect the model to garner huge volumes. We expect TVS to launch more dedicated EV products focusing on the lower price points to compete against new lower price point launches by peers in the space. The stock trades at c27x PE FY25E we have an Accumulate rating on the stock.”

A global shortage of new aircraft has lifted demand and lease rentals for mid-life planes or those that are five to eight years old.

According to Jared Ailstock, managing partner of AIP Capital, an aviation asset management and investment company, airlines are choosing to pay higher fees to extend leases and keep such aircraft on their fleets, a trend that is consistent worldwide.

“Mid-life aircraft, which would normally have been retired, are staying in fleet longer, so airlines are signing early extensions; you see lease rents go up on those aircraft, you are seeing extensions on those planes to keep them on the fleet,” Ailstock said in an interview. (Read More)

Tejas Anil Shigrekar, Commodities and Currencies Senior Technical Analyst, Angel One Ltd: The US dollar’s recovery has been ongoing and impressive, gaining strength over the past month, fluctuating within the range of 103.60 to 104.15. Notably, during the session on August 23rd, substantial resistance was encountered, creating a zone for profit booking for long dollar positions due to the resistance. Additionally, a bearish candlestick pattern emerged on the daily chart, likely influenced by treasury yields and central bank activities.

The bulls seeking safe havens have returned. During the Wednesday session, Gold prices experienced a rise of ₹245 (0.42%) per 10 grams, while Silver maintained its position above the 74,000 mark, showcasing a robust rally of ₹2022 (2.81%) per kilogram. In the NYMEX market, Gold and Silver reached USD 1920 (1%) per ounce and USD 24.36 (4%) per ounce respectively.

Looking ahead to the remaining sessions of August, our strategy anticipates the US dollar to trade within a sideways range of 102.20 to 100.80 levels. It’s important to note the significant inverse relationship between the dollar and commodities. On August 23rd, the price of Gold triggered an isolated Steban arena, resulting in a four-day sideways band between 58,200 and 58,700 levels before closing above this range. This bullish movement is likely to persist towards the next resistance point at 59,300 levels, followed by a potential target of 59,700 levels.

Similarly, for Silver, given the current pattern, a bullish outlook is favored, with Gold prices leading the way and aiming for the next resistance levels at 75,100 to 75,900. As we monitor potential bullish movement, it’s possible that minor corrections in the very short term could occur. These corrections could provide traders with opportunities to enter positions aligned with the bullish trend.

Ashutosh Somani from JM Financial Institutional Securities views on Textile sector: Export demand revival and impending FTAs to drive sector re-rating

Indian textile scrips have rallied significantly over the past few months, up ~45% YTD. Strong sector rally has been driven by a) improving global retailers inventory position b) margin expansion on account of decline in cotton prices (~38% YoY) c) increasing market size on the back of impending UK FTA d) media chatter around EU FTA. Most global retailers have highlighted reduction in inventory with demand outlook improving on the back of higher than expected growth in US retail sales. Consequently, Walmart has upwards revised its full year guidance to reflect a strong Q2 performance. TJX also expects comparable store sales to be up 3-4% for FY24. Indian home textile / apparel players in tandem with global retailers commentary expect demand revival from 2H. Extended runway for revenue growth over next 3 years (courtesy FTAs / ’China+1’), GOI’s increased focus on textile ecosystem (rebates/PLI) and deflation in commodity price (cotton price off highs) make a strong case for valuation multiples re-rating across sector names. Gokaldas Exports (huge addressable market size / top-notch execution/ net cash BS) remains our top pick in the sector. Welspun India remains a key beneficiary of the said theme.

Prime Minister Narendra Modi on Thursday said India is seen as a combination of openness, opportunities and options as the world sees optimism and confidence in the Indian economy.

In a video message at the G20 Trade and Investment Minister’s meeting here, the prime minister said that during the last nine years, India has become the fifth largest global economy and it has increased its competitiveness and enhanced transparency.

“Today we see global optimism and confidence in the Indian economy. India is seen as a combination of openness, opportunities and options,” he said.

India has expanded digitisation and promoted innovation and it has moved away from red tape to red carpet and liberalised FDI flows, he said. (PTI)

Paras Defence and Space Technologies witnessed a remarkable surge in its share price, climbing by over 17% to achieve a new 52-week high on Thursday. This impressive rally has continued for the fourth consecutive session. The shares of Paras Defence experienced a substantial increase of 17.3%, reaching a peak of ₹841.80 each on the BSE. This surge can be attributed to the prevailing enthusiasm surrounding aerospace and defense stocks, driven by the success of India’s Chandrayaan 3 moon mission.

Over the past three months, the share price of Paras Defence has demonstrated an impressive upward trajectory, surging by more than 61%. In terms of year-to-date performance, the stock has gained nearly 34%, while over the course of the past year, it has exhibited a growth of over 28%. (Read More)

Vishnu Prakash IPO: The initial public offering (IPO) of Vishnu Prakash R Punglia Limited has opened for subscription today and it will remain open for bidders till 28th August 2023. The designer and infrastructure construction company has fixed Vishnu Prakash IPO price band at ₹94 to ₹99 per equity share and book build issue has made debut in grey market as well. According to market observers, shares of Vishnu Prakash R Punglia Limited are available at a premium of ₹65 per equity share in grey market today.

Important Vishnu Prakash IPO details

The Indian rupee extended gains to open 22 paise higher against the US dollar on Thursday amid a pullback in US Treasury yields on weak economic data. The local currency opened at 82.47 a dollar as against previous close of 82.69.

The dollar index fell by the most in more than two weeks on Wednesday. Asian currencies were mostly higher, with the Korean won leading the way, Reuters reported.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The near-term market outlook has turned distinctly positive with the US economy’s soft landing narrative lifting sentiments globally and Chandrayaan 3‘s successful soft landing on the moon boosting sentiments in India. Weakening US economic data, particularly the decline in US manufacturing PMI from 49 to 47 has led to sharp decline in the US 10-year bond yield by 14 bp to 4.19%. This might turn the short-term cycle of capital flows again in favour of EMs like India. The sudden reversal in the declining trend of INR also is indicative of this shift in global macros favouring India in the near-term.

However, investors should remember that sentiments are transient and the medium to long-term trajectory of the market will be driven by economic growth and corporate earnings. So watch out for the big data.

The recovery in Bank Nifty, which is driven by fundamentals and fair valuations, augurs well for the Nifty.”

Nvidia, the chip manufacturing company, exceeded market projections with its second-quarter performance, catching both analysts and investors off guard with its outlook for the ongoing quarter.

According to CNBC’s report, Nvidia’s revenue for the period concluding on July 30 reached $13.51 billion, surpassing Refinitiv’s estimated $11.22 billion. Net income saw a substantial surge, escalating to $6.19 billion, equivalent to $2.48 per share, from the previous year’s $656 million, or 26 cents per share. (Read More)

Aeroflex Industries, supported by Ashish Kacholia, is witnessing substantial investor enthusiasm for its initial public offering (IPO). The IPO, with a total value of ₹351 crore, has garnered significant attention from investors thus far. Today marks the final day for investors to submit bids for the Aeroflex Industries IPO, concluding the subscription period that commenced on August 22.

The IPO encompasses two components: a fresh issuance of equity shares totaling up to ₹162 crore and an offer-for-sale (OFS) involving the sale of up to 1.75 crore equity shares by the promoters, selling shareholders, and the promoter group. (Read More)

Bandhan Bank on Wednesday announced it will enter co-lending business, for which it will tie up with a couple of NBFCs.

Announcing this at the bank’s foundation day programme, its MD and CEO Chandra Shekhar Ghosh said the co-lending business will cover all verticals in which loans are given.

“We have selected a couple of NBFCs, and will soon tie up with them,” he said.

Ghosh said the bank, which started its journey eight years ago, has 6,100 banking outlets across 35 states and Union Territories at present.

It opened a branch in Leh on Tuesday, and will open another branch at Kargil in September, he said. (PTI)

Tamil Nadu Film Exhibitor’s Association has urged the state government to reconsider ticket pricing, highlighting the struggle of cinemas to expand operations. In fact, multiplex chains and theatre owners acknowledge that while the South is a promising hub for the movie industry, rising expenses and capped ticket prices are making it increasingly difficult for them to operate.

Besides, expanding or introducing luxury format in Tamil Nadu, Andhra Pradesh, and Telangana is becoming challenging, even as the popularity and use of IMAX and 4DX formats for southern films grow. (Read More)

Qatar Investment Authority to invest $1 billion in Reliance Retail. GAIL India plans ₹30,000 crore capex. Coforge promoter to divest stake. India may ban sugar exports. Procter & Gamble Health reports lower profit. Bandhan Bank to enter co-lending business. Muthoot Fincorp to introduce new products on digital platform. TVS Motor launches electric two-wheeler. Tata Communications opens 5G Roaming Lab. Oriana Power wins ₹138 crore contract. (Read More)

TVS Motor Co., maker of the iQube electric scooter, only the second best-selling electric two-wheeler after Ola Electric, is expanding its play in the e-two-wheeler market with the launch of its first born-electric two-wheeler, a crossover between a motorcycle and a scooter which is aimed at young customers in the premium-end of the Indian and international electric two-wheeler markets. The launch of TVS X will be followed by the introduction of the latest generation of iQube EV, as well as more products in electric three-wheeler cargo and even electric bicycle space, Sudarshan Venu, managing director, TVS Motor, said. (Read More)

Reserve Bank of India Governor Shaktikanta Das stated that vegetable prices in India are expected to decrease from September, potentially easing the recent surge in retail inflation, which reached 7.44% in July, the highest in 15 months.

“We expect to see an appreciable slowdown in vegetable inflation from September,” Das said and for cereal prices specifically, added, “The outlook looks bright even though geopolitical tensions could hamper food prices” (Read More)

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends these stocks for day trading: 

1] City Union Bank (CUB): Buy at ₹126.25, target ₹134, stop loss ₹124;

2] MTAR Technologies: Buy at ₹2220, target ₹2320, stop loss ₹2190; and

3] SBI Life: Buy at ₹1300, target ₹1355, stop loss ₹1280. (Read More)

In the upcoming season starting October, India is anticipated to prohibit sugar mills from engaging in sugar exports. This decision comes after a span of seven years and is a response to diminished cane yields resulting from insufficient rainfall, as disclosed by three government insiders.

If India refrains from participating in the global sugar market, it could potentially amplify benchmark prices in New York and London. These benchmarks are presently hovering at multi-year peaks, prompting concerns of heightened inflation within the global food markets. Mint initially reported on this matter on June 2 of the current year. (Read More)

Vedanta Resources Ltd. has agreed to pay $250 million owed to its creditors in Zambia after it resumes control of the copper mines that were seized by former President Edgar Lungu’s administration in 2019.

Zambia government had accused Vedanta of paying too little tax and lying about its expansion plans while placing Konkola Copper Mines under provisional liquidation in 2019. However, current President Hakainde Hichilema wants to resolve the issue amicably, reported Bloomberg. (Read More)

Sovereign wealth fund Qatar Investment Authority (QIA) has agreed to invest ₹8,278 crore ($1 billion) into the retail arm of Reliance Industries Ltd (RIL), marking a fresh round of investments into Reliance Retail Ventures Ltd (RRVL) after the country’s largest retailer raised ₹47,265 crore in 2021.

QIA’s investment values RRVL at ₹8.28 trillion or $100 billion, twice its ₹4.21 trillion valuation in 2021.

QIA’s investment will translate into a 0.99% stake in RRVL on a fully diluted basis, RRVL said on Wednesday.

“The company might look slightly overvalued now, but the investors are of the view that the high growth in the segment coupled with the large market that the company is targeting will help it grow into the value in future,” an investment banker said on condition of anonymity. (Read More)

Wall Street rallied to its best day since June on Wednesday after pressure that’s built up on stocks from the bond market relaxed a bit.

The S&P 500 climbed 1.1% to trim its loss for what’s been a dismal August so far. The Dow Jones Industrial Average rose 184 points, or 0.5%, and the Nasdaq composite jumped 1.6%.

Big Tech stocks and others that benefit from easier interest rates led the way. They got some relief as the 10-year Treasury yield eased back further from its highest level since 2007 after a report suggested the U.S. economy may be cooling.

A 2.2% gain for Apple’s stock and 1.4% climb for Microsoft shares were two of the strongest forces pushing the S&P 500 upward.

Nvidia, another one of the market’s most influential stocks, rallied 3.2% ahead of its highly anticipated profit report. Expectations were immense for the report, which came out after trading ended for the day, and it still managed to blow past forecasts.

Nvidia stunned Wall Street three months ago by predicting a boom in artificial intelligence technology would mean it would make roughly $11 billion in revenue during the three months through July. (AP)