The week is littered with 13 central bank meetings that are certain to see borrowing costs rise across the globe. Wall Street closed lower on Friday and Asian markets remained cautious on Monday morning
19 Sep 2022, 09:07:10 AM IST
Bull vs bear: Vijay Kedia on when retail investors should look at snapping up stocks
After the bloodbath on Dalal Street on Friday, stock market investors are under panic as to when this sell-off will end and at what levels, this bear market will make its bottom. However, ace investor Vijay Kedia is least bothered by such a fall in the markets. He believes that such a fall in Indian stocks is a big opportunity for a long-term positional investor. In an exclusive conversation with Livemint, Vijay Kedia said that ‘a bear market creates smart investors’ as it provides an investor to develop art to find opportunities during fear.Vijay Kedia told Livemint that a bull market creates many self-acclaimed genius but in reality, a real stock market genius are born in a bear market. (Full story)
19 Sep 2022, 09:07:10 AM IST
Sensex pre-opens in red, down 300 points; ACC, Ambuja Cements, Adani Power, HDFC Life in focus
View Full ImageSensex at Preopen
19 Sep 2022, 08:59:41 AM IST
Ashika Stock Broking view on market: Avoid trading aggressively amid global nervousness.
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a long negative candle on the daily chart, resembling closer to a dark cloud cover which has a bearish implication and indicating of further weakness ahead. On the oscillator front, the 14-period RSI has witnessed a sell crossover and presently trading below the 60-level mark and turned flattish indicating of sluggish momentum for the short to medium term. Thus, one needs to avoid trading aggressively amid global nervousness. Considering the present situation, a bare minimum correction of 23.6% of the entire rally from 15,183 to 18,096 comes around 17415 followed by 38.2% correction at 16990. However, on the medium-term perspective price structure indicates of continuance of positive bias and our domestic Index is likely to head towards 18,300 in near term as it is the swing high of January 2022. Nifty also registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying major shift of momentum from a medium-term perspective. During the day index is likely to open on a flat to negative note tracking weak global cues. However, the index is expected to rebound post initial blip as strong intraday support placed at 17400-17450. Hence, use intraday dip for creating long position for the target of 17865-17900
19 Sep 2022, 08:49:47 AM IST
Reliance Securities Stock in Focus for Monday: EPL
STOCK IN FOCUSEPL (CMP Rs.171)In view of the improved balance sheet and higher return ratios, we have a BUY rating on EPL, with a 1-year Target Price of Rs220, valuing the stock at a PE multiple of 20x on FY24E EPS.Intraday PicksMFSL (PREVIOUS CLOSE: 823) BUYFor today’s trade, long position can be initiated in the range of Rs821- 815 for the target of Rs854 with a strict stop loss of Rs802.PIIND (PREVIOUS CLOSE: 3,136) SELLFor today’s trade, short position can be initiated in the range of Rs3,215-3,230 for the target of Rs3,060 with a strict stop loss of Rs3,310.CIPLA (PREVIOUS CLOSE: 1,044) SELLFor today’s trade, short position can be initiated in the range of Rs1,054- 1,059 for the target of Rs1,026 with a strict stop loss of Rs1,069.
19 Sep 2022, 08:48:33 AM IST
FM Sitharaman to meet CEOs of PSBs to review schemes’ progress for SCs in Sept-end
Union Finance Minister Nirmala Sitharaman is all set to meet the heads of public sector banks and financial institutions by the end of September to review progress of various government schemes aimed at welfare and upliftment of scheduled castes. According to the details, schemes like Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), and Credit Enhancement Guarantee Scheme for Scheduled Castes (SCs) and their progress would be discussed. (Full Story)
19 Sep 2022, 08:46:36 AM IST
Stocks to Watch: ACC, Ambuja Cements, HDFC Life, Hero MotoCorp, REC, ONGC, Yes Bank, Adani Power, Maruti Suzuki, and SBI
RBL Bank, PVR, India Cements and Indiabulls Housing Finance Ltd are put under the F&O ban list for Monday. These stocks will be under the ban for the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
19 Sep 2022, 08:36:16 AM IST
ONGC wants govt to scrap windfall tax, USD 10 gas price
India’s top oil and gas producer ONGC wants the government to scrap windfall profit tax levied on domestically produced crude oil and instead use the dividend route to tap into bumper earnings resulting from surge in global energy prices.The firm also favours a floor price for natural gas at USD 10 per million British thermal unit — the current government-dictated rate — to help bring deposits in challenging areas to production, two sources aware of the matter said.State-owned Oil and Natural Gas Corporation (ONGC) management during discussions with government officials stated that levying windfall profit tax on domestic oil producers, while at the same time reaping rich savings from buying discounted oil from Russia was unfair. (PTI)
19 Sep 2022, 08:29:50 AM IST
DPIIT working on law to decriminalise different provisions related to minor offences
The commerce and industry ministry is framing a law to decriminalise all provisions related to minor offences with an aim to promote ease of doing business in the country, a senior official said.Work is at an advanced stage for framing the ease of doing business and ease of living bill and the ministry is targeting to introduce it in the winter session of parliament, the official said.“We are making an Act. We are bringing one bill and that one bill seeks to decriminalise all the minor offences mentioned in different Acts. We are having consultations with all the departments on the bill. We will bring a common Act for decriminalisation. Basically replacing imprisonment and fine with penalties, and rationalisation. For minor offences, there should be no jail. Instead, there should be a penalty,” the official added. (PTI)
19 Sep 2022, 08:24:06 AM IST
Darling of promoters and FIIs stock turned ₹1 lakh to ₹58 lakh in 5 years
With a market capitalization of ₹926.39 crore, Ritesh Properties & Industries Ltd. is a small-cap company that engages in the real estate industry. A well-known corporation having activities in the real estate and fashion industries is Ritesh Properties and Industries Ltd. Sanjiv Arora, the firm’s Chairman and Managing Director, is in charge of RPIL, a public limited company with its headquarters in Ludhiana and a BSE ticker symbol of 526407. The shares of Ritesh Properties and Industries Ltd are among the multibagger stocks that have made shareholders lakhpati in a span of 5 years, let’s know-how. (Read More)
19 Sep 2022, 08:16:29 AM IST
Harsha Engineers IPO: Latest GMP, allotment date, how to check status
After closure of three days subscription, all eyes are now set on the Harsha Engineers IPO allotment date, which is most likely on 21st September 2022. However, after strong response from investors, grey market is still giving strong signals in regard to the public offer worth ₹755 crore. According to market observers, shares of Harsha Engineers International Ltd is available at a premium of ₹215 in grey market today. (Read More)
19 Sep 2022, 07:49:46 AM IST
Ontario Teachers’ to buy 30% in Mahindra‘s renewable arm
Ontario Teachers’ Pension Plan Board has signed binding agreements with the Mahindra Group to acquire a 30% stake in renewable energy firm Mahindra Susten Pvt. Ltd for an equity value of ₹2,371 crore ($300 million).The Mahindra Group said the deal also envisages the setting up of an infrastructure investment trust (InvIT) in compliance with regulations of the Securities and Exchange Board of India.The Mahindra Group said the deal also envisages the setting up of an infrastructure investment trust (InvIT) in compliance with regulations of the Securities and Exchange Board of India. (Full Story)
19 Sep 2022, 07:48:35 AM IST
Mixed airfare trends after cap removal; air passenger traffic on rise: Experts
After the removal of airfare caps, there seems to be a mixed trend with lower ticket prices for routes having relatively lesser passenger loads, according to travel industry experts.More than two years after being put in place amid the coronavirus pandemic, the fare caps were removed with effect from August 31. The move also came against the backdrop of gradual recovery in domestic air passenger traffic.The average booking price has not changed much but there seems to be a mixed trend with certain sectors seeing drop in fares while some others witnessing a rise, as per the industry players. (PTI)
19 Sep 2022, 07:37:46 AM IST
Inox Green Energy plans to launch ₹740-cr IPO in next 30-45 days: CEO Kailash Tarachandani
Inox Green Energy Services, a subsidiary of Inox Wind, is planning to come out with its Initial Public Offering (IPO) by October this year to raise ₹740 crore to fund its expansion plans.The company will focus on the Indian market initially and plans to tap the overseas market after establishing itself in this country, Inox Wind Chief Executive Officer (CEO) Kailash Lal Tarachandani told PTI.Speaking to reporters during a visit to its plant in Rajmol, Gujarat, Tarachandani said the company is planning to launch its IPO “in the next 30 to 45 days”.This is Inox Green Energy Services’ second attempt to go public. In February, the company had filed the Draft Red Herring Prospectus (DRHP) for its proposed IPO with the markets regulator Sebi. (PTI)
19 Sep 2022, 07:36:27 AM IST
TCS may boost dividends to Tata Sons by a third by FY25
Tata Sons Ltd’s reliance on Tata Consultancy Services Ltd (TCS) to bankroll the group’s planned $18 billion annual capital expenditure is expected to increase over the next five years as dividend income from the country’s largest technology services company is estimated to jump by a third by 2025 on the back of improving free cash flow. Increased income from TCS to help Tata Sons bankroll group’s capital expenditure plans. (Full Story)
19 Sep 2022, 07:35:35 AM IST
Gazprom issue: India won’t seek arbitration or penalty
The failure of Russian government-owned Gazprom, the world’s largest explorer of natural gas, to honour the terms of a deal to supply liquefied natural gas (LNG) to state-run GAIL (India) Ltd is being dealt with bilaterally at the highest level of the Indian government, said two government officials aware of the development. Failure of Gazprom to honour the deal to supply LNG is being dealt with at the highest level of government. (Full Story)
19 Sep 2022, 07:34:14 AM IST
FPIs infuse ₹12,000 cr in Indian equities in Sep on hopes of slow rate hikes
Foreign investors pumped ₹12,000 crore into the Indian equity market so far this month on hopes that global central banks, particularly the US Fed, may go slow on rate hikes as inflation starts to cool off.This comes following a net investment of ₹51,200 crore in August and nearly ₹5,000 crore in July, data with depositories showed.FPIs turned net buyers in July after nine straight months of net outflows, which started in October last year. Between October 2021 till June 2022, they sold a massive ₹2.46 lakh crore in the Indian equity market.
19 Sep 2022, 07:29:55 AM IST
Rupee falls 7 paise to close at 79.78 against US dollar on forex outflows
The rupee declined by 7 paise to close at 79.78 against the US dollar on Friday, tracking a strong dollar in overseas markets and losses in domestic equities.At the interbank foreign exchange market, the domestic currency opened at 79.80 per dollar. It hovered in a range of 79.71 to 79.85 during the session.The domestic unit finally settled at 79.78, down 7 paise over its previous close of 79.71.”We expect the rupee to trade with a negative bias on the strong dollar and risk aversion in global markets. Global markets declined after IMF spokesman Gerry Rice flagged concerns over further slowdown in the global economy and said that some countries are expected to slip into recession in 2023,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. (PTI)
19 Sep 2022, 07:27:50 AM IST
Wall Street falls on Friday as FedEx warning adds to market woes
Wall Street closed out the stock market’s worst week in three months with more losses Friday, as a stark warning from FedEx about rapidly worsening trends in the economy rattled already anxious investors.The S&P 500 fell 0.7%, with all but two of its 11 company sectors ending in the red. The benchmark index sank 4.8% for the week, with much of the loss coming from a 4.3% rout on Tuesday following a surprisingly hot report on inflation. The last time it posted a bigger weekly decline was the week ended June 17.The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite dropped 0.9%. The Russell 2000 index of smaller companies took the heaviest losses, falling 1.5%.All the major indexes have now posted losses four out of the past five weeks.
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Bed Bath & Beyond’s turnaround is not enough to fix the struggling business, analysts sayDisney owns two-thirds of Hulu and has an option to buy the remaining 33% from Comcast as early as January 2024. Some analysts and industry watchers have speculated Comcast might try to buy Hulu from Disney rather than the other way around. Comcast Chief Executive Brian Roberts has been a long-time believer in Hulu and has historically pushed to keep the asset rather than sell, including in 2013, when Roberts nixed talks with DirecTV, according to people familiar with the matter.Comcast broached the idea of buying all of Hulu from Disney after Disney agreed to acquire the majority of Fox’s assets as part of a $71 billion deal that closed in early 2019, said two of the people, who asked not to be named because the discussions were private. Disney, armed with 66% ownership after acquiring Fox’s minority stake in Hulu, dismissed the idea, the people said.Blocked from buying all of Hulu, Comcast’s sustained belief in the business led to the unusual agreement the two companies reached in May 2019, with Comcast agreeing to sell Disney its minority stake as early as 2024. As part of that transaction, Disney guaranteed a sale price valuing Hulu at a minimum of $27.5 billion.That amount spiked earlier in the pandemic, giving Comcast some hope that Disney may choose to unload Hulu rather than pay Comcast a huge check for the remainder, two of the people said. Offloading Hulu would have allowed Disney to put its focus and money primarily on Disney+.”I think if Disney could roll back the clock today, I’m not so sure they would enter into that deal,” said Neil Begley, an analyst for Moody’s Investors Services. “Disney has this huge bill to pay in 2024 at a time when they’re already investing a lot of money into Disney+.”Acquiring Hulu from Disney would also supercharge Comcast’s streaming efforts. Hulu would instantly become Comcast’s flagship streaming asset, replacing NBCUniversal’s Peacock, which has added just 13 million paid subscribers in its nearly two years of existence. Hulu has 46.2 million subscribers. Peacock could live on as NBCUniversal’s free advertising-supported option. Peacock already has a free tier, with millions of users.Several top Comcast executives also think Hulu doesn’t make as much sense paired with Disney’s assets as it would at NBCUniversal, especially with the recent announcement that Disney+ plans to launch an advertising-supported tier in December, according to people familiar with the matter. Hulu has been Disney’s advertising-supported service for years. Disney could have positioned Hulu as its advertising play going forward, but CEO Bob Chapek has chosen to make versions of both Disney+ and Hulu with and without commercials.Spokespeople for Disney and Comcast declined to comment.Bob Chapek, CEO of the Walt Disney Company and former head of Walt Disney Parks and Experiences, speaks during a media preview of the D23 Expo 2019 in Anaheim, California, Aug. 22, 2019.Patrick T. Fallon | Bloomberg via Getty ImagesWhy Disney wants HuluNetflix’s slowing growth this year has led to an overall devaluation in the streaming sector. Comcast executives value Hulu “significantly higher” than $27.5 billion, and possibly up to $50 billion, one of the people said. That’s down from around $60 billion during the pandemic, the person said. If Disney sticks to its plan to buy out Comcast by January 2024, there’s still time for significant valuation fluctuations.Disney’s decision to lower Disney+’s 2024 guidance and its subsequent move to raise prices signaled to Wall Street that Chapek is no longer focused on adding subscribers at all costs.It’s sent a signal to Comcast that Hulu is likely in Disney’s long-term plans. Excluding Hulu with Live TV, Hulu’s average revenue per user is $12.92 per month. That’s nearly triple Disney+’s global ARPU of $4.35 and more than double Disney+’s ARPU in the U.S. and Canada ($6.27).Disney has built a streaming strategy around bundling Disney+, Hulu and ESPN+. While Disney raised Disney+’s price by 38% and ESPN+’s price by 43%, it only bumped its bundled offering of Disney+, Hulu (with ads) and ESPN+ by $1, from $13.99 to $14.99. That suggests Disney’s most preferred option is customers pay for the entire bundle, including Hulu.Media and entertainment companies have begun focusing on building profitable subscribers, rather than simply acquiring subscribers, in recent months as industrywide streaming growth has slowed. If Disney isn’t trading on Disney+ growth, Hulu becomes a more important part of its long-term strategy.”People are getting more judicious about their spend,” Kevin Mayer, Disney’s former head of streaming, said on CNBC last month. “There’s a renewed emphasis from Wall Street not just on the topline subscriber number but on the bottom line. I think that’s healthy.”Comcast vs. DisneyThere’s also the issue of competitive dynamics. A primary reason Disney held on to Hulu, and acquired other Fox assets, was specifically to keep them from Comcast, according to people familiar with the matter. Handing Hulu to Comcast would alter the balance of power in the media world and weaken Disney, then-CEO Bob Iger thought, the people said.Comcast has already taken steps to weaken Hulu, assuming Disney will keep it. Earlier this year, Comcast made the decision to remove content such as “Saturday Night Live” and “The Voice” from the streaming service and put it on Peacock instead. That change takes place later this month.Comcast has already earmarked some of the proceeds it’ll receive toward paying down debt. Comcast executives say they don’t need the cash and aren’t independently looking to accelerate a timeline, two of the people said.Dan Loeb’s desireDaniel LoebSimon Dawson | Bloomberg | Getty ImagesActivist investor Dan Loeb’s Third Point Capital bought a new stake in Disney last month, arguing Disney should not only complete its deal for Hulu, it should accelerate its timing.”We urge the company to make every attempt to acquire Comcast’s remaining minority stake prior to the contractual deadline in early 2024,” Loeb said in a letter addressed to Chapek. “We believe that it would even be prudent for Disney to pay a modest premium to accelerate the integration but are cognizant that the seller may have an unreasonable price expectation at this time (while noting the seller has already made the decision to prematurely remove their own content from the platform.) We know this is a priority for you and hope there is a deal to be had before Comcast is contractually obligated to do so in about 18 months.”Disney hasn’t publicly addressed the specifics of Loeb’s requests and hasn’t made a decision on whether it plans to speed up a timeline to buy Comcast’s stake in Hulu, according to people familiar with the matter.Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.WATCH: Disney membership in the works and could offer exclusive content or experiences
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