By : ABP News Bureau | Updated: 26 Sep 2023 05:03 PM (IST)
The rupee stayed on the downward track for the second straight day to settle 14 paise lower at 83.27 (provisional) against the US dollar on Tuesday due to a firm greenback against major currencies overseas and persistent foreign capital outflows.
The two key equity benchmarks, Sensex and Nifty, on Tuesday again closed flat amid volatility in a directionless market. The BSE Sensex closed at 65,945, down 78 points. On the other hand, the NSE Nifty shut shop at 19,665, down 10 points. On the 30-share Sensex platform, TechM, IndusInd Bank, Infosys, Asian Paints, ICICI Bank, and Kotak Bank were among the losers. On the upside, Nestle, Tata Steel, M&M, Bajaj Finance, HDFC Bank, and NTPC emerged gainers. Shares of Eicher Motors, the listed parent company of Royal Enfield, and TVS Motor Company were in focus and rallied up to 4 per cent on the BSE in Tuesday’s intra-day trade after overseas brokerage firm Jefferies said it preferred these two stocks over Bajaj Auto and Hero MotoCorp in two-wheelers (2W) segment.
Public sector company WAPCOS Ltd has shelved it’s plan for an initial public offering (IPO), intended to divest shares. The issue was scheduled to be a complete offer-for-sale (OFS) of around 32,500,000 equity shares by the promoter, the Government of India. The company filed it’s preliminary papers for the issue on September 26 last year with the Securities and Exchange Board of India, but it withdrew the issue last week on September 21, 2023, an update with SEBI revealed. The company didn’t provide any reasons for the withdrawal. The company comes under the ministry of Jal Shakti and provides consultancy, engineering, procurement, and construction services in the water, power, and infrastructure sectors.
Fincare Small Finance Bank Ltd and logistics company Western Carriers (India) Ltd have received approval from the markets regulator Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offerings (IPOs). The two firms, which filed preliminary IPO papers with the SEBI between May and June, obtained the regulator’s observation letters during September 15-22, an update with the watchdog showed on Tuesday. In SEBI’s parlance, obtaining its observation letter means its clearance to float the public issue.
The income tax department issued norms regarding the valuation of equity and compulsorily convertible preferable shares issued by start-ups to resident and non-resident investors. The revised norms are effective from September 25, the government said. According to the changes in Rule 11UA of the I-T rules, the Central Board of Direct Taxes (CBDT) stated that the valuation of compulsorily convertible preference shares (CCPS) can also be decided on the fair market value of unquoted equity shares. The revised norms also retain the five new valuation methods suggested in the draft rules for consideration received from the non-resident investors, reported PTI. Notably, till recently, only investments made by domestic investors or residents in unlisted companies were taxed at a higher rate than the fair market value. This was termed an angel tax. However, the Finance Act, of 2023, noted that these investments above the fair market value would be taxed, whether they are made by domestic or resident investors or non-resident investors.
The GST Council will hold it’s meeting on October 7, chaired by the Union Finance Minister Nirmala Sitharaman. The 52nd meeting of the council will involve state finance ministers as well. In it’s earlier meeting held on August 2, the council approved changes to the Goods and Services Tax (GST) laws to provide clarity on the taxation of casinos, horse racing, and online gaming. Under these changes, it had informed that online gaming will be charged a GST of 28 per cent.
The 52nd meeting of the GST Council will be held on 7th October, 2023 at Vigyan Bhawan , New Delhi.
Hospitality chain OYO is all set to become profitable for the first time ever. Oravel Stays Ltd, the company’s operating firm, is reportedly planning to reveal it’s first-ever profit after tax of more than Rs 16 crore, sources claimed based on an email shared by the company’s founder and CEO Ritesh Agarwal with the top management, reported PTI. Agarwal in his email, sent on Tuesday, said, “This year marks the 10th year of OYO, making it momentous and special. I have news to share befitting this occasion. As per the current trajectory in this quarter, Q2 FY24 will mark our maiden profitable quarter with a projected profit after tax (PAT) of over Rs 16 crore.”
Global aviation leasing watchdog, the Aviation Working Group (AWG), has downgraded India’s compliance rating with international leasing laws for the second time. The watchdog has given India a negative outlook and kept the country on a watchlist, as the dispute plays between airline Go First and it’s aircraft lessors.
According to a report by Reuters, the UK-based AWG gave this rating as the Go First airline is stuck in a legal battle with aircraft lessors looking to repossess jets. The AWG is a not-for-profit entity and it monitors leasing and financing laws. The body is co-chaired by Airbus and Boeing. It reduced India’s rating from 3.5 out of 5 to 2. This negative rating has been given by the AMG in the compliance index, which assesses if the requirements under the Cape Town Convention are met. Warning about more downgrades, the AWG in it’s notice said, “The prolonged failure to make remedies, including repossession and deregistration, available to creditors … and provide for asset maintenance and value preservation … negatively impact scoring.”
The two key equity benchmarks, Sensex and Nifty, on Tuesday were trading flat. At 9.38 am, the S&P BSE Sensex was marginally down by 32 points to 65,991. On the other hand, the NSE Nifty50 was trading at 19,673, down 1.15 per cent. On the 30-share Sensex platform, Asian Paints, TechM, Kotak Bank, Bajaj Finserv, TCS, Infosys were among early losers. On the flip side, Tata Steel, UltraCemco, L&T, Airtel, JSW Steel, Titan emerged gainers.
Among specific stocks, Tata Steel shares rose 1.4 per cent after Moody’s raised the company’s long-term rating from Ba1 to Baa3. The outlook has been revised from ‘Positive’ to ‘Stable’. The IPO of the JSW Group firm, JSW Infrastructure’s was subscribed 43 per cent on the first day of the issue, led by retail investors (1.38x subscription), NII (60 per cent), and QIB (3 per cent).
The stock exchanges announced on Monday that stocks in the small and medium enterprises (SME) segment will come under the ambit of Additional Surveillance Measures (ASM) and trade-for-trade settlement to manage volatility in these shares. Both the NSE and BSE issued circulars stating that this move has been adopted by the exchanges after discussions with the Securities and Exchange Board of India (SEBI). The measure aims to control speculative trading in the SME category, which has seen an increase in retail participants.
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The two key equity benchmarks, Sensex and Nifty, on Monday closed flat amid volatility as the indices entered the week of the monthly F&O expiry. The S&P BSE Sensex oscillated 462 points during intraday and ended 15 points higher at 66,024. On the other hand, the Nifty50, settled unchanged at 19,676. On the 30-share Sensex platform, Bajaj twins, Kotak Bank, Asian Paints, UltraCemco, ICICI Bank were among the gainers. On the downside, Infosys, M&M, Wipro, TCS, SBI, Sun Pharma emerged losers.
On Tuesday, Asian markets exhibited weakness due to renewed concerns about China’s property sector. Meanwhile, the US markets ended trading with gains and the US bond market continued it’s sell-off for the fourth straight week, as reported by the Hindu Businessline. In addition to the dollar reaching it’s peak strength of the year, the Japanese yen is nearing 150 per dollar, but there seems to be no indication of any intervention from the authorities yet. This might leave an impact on investors’ confidence and sentiment. Global oil benchmark Brent crude climbed 0.39 per cent to $93.63 a barrel on Monday. Foreign institutional investors (FII) sold shares worth Rs 2,333.03 crore, while domestic institutional investors (DII) bought Rs 1,579.28 crore worth of stocks on September 25, provisional data from the National Stock Exchange (NSE) showed. FIIs pulled out over Rs 10,000 crore from Indian equities in the first three weeks of September.
Meanwhile, the rupee declined by 20 paise to settle at 83.14 (provisional) against the US dollar on Monday due to rising crude oil prices and a strong American currency against major rivals overseas. Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said. At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback. It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close. On Friday, the rupee climbed 19 paise to close at 82.94 against the US dollar.
Here are some important factors that can impact the market on September 26.
Globally, markets will keenly observe the final economic growth data from US for the second quarter of the calendar year set to be released on September 28, followed by a speech from Fed Chair Jerome Powell on September 29. The US is scheduled to reveal new home sales and final building permit statistics for August on September 26, in addition to real consumer spending and PCE prices for the second quarter of the calendar year 2023 scheduled to be released on September 28.
Additionally, the UK will release it’s GDP numbers for the June quarter of 2023 and it’s current account data on September 29. The European Central Bank will hold a non-monetary policy meeting on September 27 and it’s general council meeting on September 28. The EU is scheduled to announce it’s consumer confidence final and industrial sentiment for September towards the end of the week. Japan is expected to come out with it’s retail sales, housing starts, and construction orders for August on September 29.
Domestically, fiscal deficit and infrastructure output numbers for August are expected to be released by the end of the week, in addition to foreign exchange reserves for the week ended September 22, as per a report by Moneycontrol.
The markets this week will witness three mainboard offers and nearly 13 SME issues, lined up for subscription. JSW Infrastructure, Updater Services opened for bidding on Monday. Valiant Laboratories will launch it’s IPO from September 27 to October 3. The issue consists of fresh equity worth Rs 1.08 crore and is priced in the range of Rs 133-140. Additionally, 13 SME IPOs including Vishnusurya Projects, Arabian Petroleum, Newjaisa Tech, and Inspire Films will open for subscription in the week.
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By : ABP News Bureau | Updated: 26 Sep 2023 05:03 PM (IST)