Macfos IPO: GMP steady after over 194 times subscription. Share allotment, listing date details

The initial public offering (IPO) of Macfos Ltd witnessed strong demand from retail investors and NIIs since its opening on Friday, February 17, 2023, and the three-day initial share sale concluded on Tuesday, February 21, 2023. The price band of the issue had been fixed at ₹96 to ₹102 per share. The IPO aimed to raise about ₹23.7 crore with an NII quota of 15%, QIB of 50%, and a retail quota of 35%.

As per Market observers, Macfos shares are commanding a premium (GMP) of ₹82 in the grey market today. The shares of the company are expected to list on BSE SME on March 1, 2023. The SME platform of the exchanges is intended for small and medium-sized companies. (Read More)

Sensex preopens in the red; Adani Transmission, HDFC Bank, Paytm in focus in today’s session

Reliance Securities Stock in Focus for Today: Astral

STOCK IN FOCUS

Astral (CMP 1,944): In view of the all these positive triggers of high growth and earning CAGR, we have our BUY rating on the Stock, with a Target Price of Rs2,370.

Intraday Picks

INFOSYS (PREVIOUS CLOSE: RS1580) SELL

For today’s trade, short position can be initiated in the range of Rs1580-

1600 for the target of Rs1555 with a strict stop loss of Rs1615.

SBI (PREVIOUS CLOSE: RS523) BUY

For today’s trade, long position can be initiated in the range of Rs512-

517 for the target of Rs532 with a strict stop loss of Rs509.

M&M (PREVIOUS CLOSE: RS1352) SELL

For today’s trade, short position can be initiated in the range of Rs1355-

1365 for the target of Rs1333 with a strict stop loss of Rs1380.

Centre to sell 20 lakh tonnes of wheat in open market from buffer stock to cool prices of atta

The Centre on Tuesday announced sale of an additional 20 lakh tonnes of wheat in the open market to further bring down the retail prices of wheat and wheat flour (atta) and asked flour millers to cut rates with softening in wholesale price of grain.

On January 25, the Centre had announced sale of 30 lakh tonnes of wheat in the open market from its buffer stock to check rise in prices of wheat and wheat flour (atta).

According to an official statement, the government has decided that state-owned Food Corporation of India (FCI) will offload an additional quantity of 20 lakh tonnes of wheat in open market under the Open Market Sale Scheme (OMSS). The stocks will be sold through e-auction to flour mills/private traders/bulk buyers/manufactures of wheat products.

The proposal to sell stocks in the open market was taken by a group of ministers, sources said. (PTI)

Global market update: SGX Nifty, Asia follow weak cues from Wall Street

US market saw the worst day of 2023 on Tuesday as macro data points at higher rate scenario. The markets around the globe are keenly eyeing the US fed meeting minutes for hints on further monetary policy tightening. US Stocks extended last week’s fall on fears of higher rates for longer duration. Indices witnessed biggest daily fall on Wall Street since December 15. 10-year bond yield soared 10 bps to 3.95% and US Dollar Index went above 104. (Read More)

Stoxbox views on today’s market: Going ahead, index has an intermediate support around 17770-17650. On the other hand resistance is placed around 17900-18030

Rohan Shah, Head Technical analyst at Stoxbox: The U.S. equities posted a worst day decline of 2023 on Tuesday, as sentiments turned sour after the release of the S&P Global PMI data, S&P 500 and Nasdaq both ended in red with a loss of more than 2 percent, 2.00% and 2.50% respectively, while Dow Jones declined 2.06%. Yields on government bonds hits fresh three months high, with the yield on the benchmark 10-year U.S. Treasury note jumped to 3.956%, from 3.842%.

Indian equities closed in red on Tuesday, Nifty fell 18 points or 0.10%. Nifty forms lower highs and lows, for the fourth consecutive session in a row. Index has closed beneath the 20 DEMA for the second consecutive session, failure to reclaim back above the same shall attract further bearish momentum. Going ahead, the index has intermediate support around 17770-17650. On the other hand, resistance is placed around 17900-18030. Nifty Bank closed marginally lower by 0.07%, Broader market, Nifty Mid Cap and Nifty Small closed lower by 0.36% and 0.36% respectively. Sectoral indices ended mixed. The NiftyFMCG and NiftyFinservice were the major gainers which were up 0.11% and 0.05%. NiftyPSUBank lost the most at 1.79% followed by NiftyRealty which plunged 1.20%.

The markets are likely to open in red; SGX Nifty trading lower by 85 points compared to the previous closing. Asian Markets are trading weak; Nikkei is trading lower by 1.40% while Hang Seng is down by 0.79%.

Usha International looks to close FY23 with around ₹3,800 crore revenue

Consumer durable product maker Usha International is looking to close the current financial year with a revenue of around ₹3,800 crore, said its CEO Dinesh Chhabra.

As part of its strategy, the company is pursuing “profitable growth” across its segments with quality and not chasing the market shares, he said.

“We would attempt to close to ₹3,700 crore to ₹3,800 crore in FY23,” Chhabra told PTI.

Usha International operates in the consumer durable space with a product portfolio, including fans, sewing machines, home appliances and power products.

Presently 45 per cent of Usha International’s business comes from the fan segment, while the rest is contributed by others.

When asked about growth, Chhabra said he expects growth from all the segments. (PTI)

Stocks to Watch: Adani Transmission, HDFC Bank, Zee, Paytm, IRB Infrastructure, New India Assurance, Advik Capital, HPCL, Lupin, and Coal India

Mahindra CIE Automotive India will be among the stocks in focus as it will declare its December quarter earnings today. (Read More)

Stiff Adani margins fail to deter day traders

Day traders with deep pockets aren’t deterred by stiff trading margins on Adani group stocks, the surge in traded volumes of group companies on exchanges shows. Earlier this month, stock exchanges imposed trading margins of 65-100% in several Adani group companies.

The high level of volatility in counters such as Adani Total Gas, Adani Transmission, Adani Green Energy and Adani Enterprises is attracting these traders who take intraday buy or sell bets and close out their positions before the end of the day’s trading. The group’s combined market value fell below the $100 billion mark on Tuesday. (Read More)

₹1.5 lakh cr to be invested for setting up data centres in next 6 years: Report

The data centres industry will witness investments of ₹1.5 lakh crore over the next six years, a report said on Tuesday.

This will result in addition of nearly 5,000 MW capacity, which is a six-fold increase as compared to the current installed capacity, domestic ratings agency Icra said in the report.

The agency attributed the increased interest in investments to data localisation and data explosion for what it termed as the data centre revolution, which is underway in the country.

It can be noted that last few years have seen a slew of announcements by companies, including those from the Adani Group, to invest in the data centres space.

“The key triggers for digital explosion in India are the increasing internet and mobile penetration, the government’s thrust on e-governance/digital India, adoption of new technologies (cloud computing, Internet of Things, 5G etc), growing userbase for social media, gaming, e-commerce and OTT platforms,” the agency’s co-group head for corporate sector ratings Anupama Reddy said. (PTI)

HDFC Bank to hit dollar bond market after gap of 2 years

HDFC Bank plans to sell dollar bonds to support its plans to expand lending outside India, joining other banks in tapping opportunities in overseas markets, according to two people aware of the matter.

The country’s largest private bank is expected to raise $500 million by selling five-year bonds, the people said, requesting anonymity. HDFC Bank has hired Citigroup, HSBC, JP Morgan, Mitsubishi UFJ Financial Group, Societe Generale and Standard Chartered for the proposed Reg S transaction, which bars the securities from being sold to people in the US. (Read More)

Rupee falls 6 paise to close at 82.79 against US dollar

The rupee depreciated 6 paise to close at 82.79 against the US dollar on Tuesday as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments.

Traders said the inflow of foreign funds in the domestic equities market, however, supported the Indian currency.

At the interbank foreign exchange market, the rupee opened at 82.76 against the greenback and finally settled for the day at 82.79, registering a fall of 6 paise over its previous close of 82.73.

During the session, the domestic unit witnessed an intra-day high of 82.73 and a low of 82.83 against the American dollar.

“Rupee continued to trade in a narrow range and volatility remained low. Preliminary manufacturing and services PMI numbers released from the EZ and the UK came in better-than-estimates. Euro and pound gained after the release of robust data,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services. (PTI)

Citigroup lifts CEO Fraser’s 2022 pay to $24.5 mln

Citigroup increased Chief Executive Officer Jane Fraser’s compensation by nearly 9% to $24.5 million for 2022, the lender said in a filing on Tuesday.

Fraser’s total pay in 2021 was $22.5 million. She took over as the first female chief executive of a major Wall Street bank in February 2021.

Her pay is still below the $34.5 million of JPMorgan & Chase Co’s CEO Jamie Dimon, and Morgan Stanley CEO James Gorman’s $31.5 million.

Fraser’s base salary was $1.5 million, her cash incentive was $3.45 million and her deferred incentives included $8.05 million in deferred stock and $11.5 million of performance share units, the filing showed. (Read More)

Chinese say projects awaiting India’s nod

China remains hopeful of securing investment approval for its firms looking to invest in India even as the two continue to share a testy political relationship due to border tensions, people aware of the development said. While Indian officials said in January that pending foreign direct investment (FDI) proposals from China are at their lowest, Chinese diplomats said many Chinese investment proposals in India await approval.

“There are still many applications for Chinese investment in India submitted for a long time, waiting for the approval of the Indian government,” these diplomats said on condition of anonymity. (Read More)

‘Angel Tax’ provisions in Finance Bill will not impact startups: DPIIT Secy

The ‘angel tax’ provision in the Finance Bill will not impact startups in India, a senior government official said on Tuesday.

Startups which are registered with the Department for Promotion of Industry and Internal Trade do not come under the purview, Anurag Jain, the secretary in the department said while speaking at the Indian Venture and Alternate Capital Association (IVCA) Conclave here.

“Let me put one thing very clearly. It doesn’t affect startups in the least,” he said, addressing the audience at the event organized by the venture capital industry lobby grouping. (Read More)

Vodafone Idea stock under F&O ban on NSE today. Details here

Only one stock has been put under the ban for trade on Wednesday, February 22, 2023 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The counter has been put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE.

Debt-ridden telecom operator Vodafone Idea (Vi) stock is one that is part of the F&O ban list ban by the stock exchange for today. The NSE updates the list of securities in F&O ban for trade every day. (Read More)

Centre likely to auction lithium reserves by June

The government is poised to invite bids for the auction of the newly discovered lithium reserves in Jammu as early as the June quarter, a move that will give India access to the strategic mineral that helps power everything from mobile phones to electric vehicles.

Earlier this month, the Geological Survey of India (GSI) reported the presence of significant lithium reserves totalling 5.9 million tonnes in the Reasi district of Jammu and Kashmir. The find has catapulted India into the world’s seventh-largest holder of lithium reserves. (Read More)

Wall Street posts worst day of 2023 on Wednesday on higher-for-longer rate fears

Wall Street posted its worst performance of the year on Tuesday, with the main benchmarks ending down as investors interpreted a rebound in U.S. business activity in February to mean interest rates will need to stay higher for longer to control inflation.

For the S&P 500 and Nasdaq Composite, it was their third session in a row closing lower, while the decline in the Dow Jones Industrial wiped out its gains for 2023.

The falls came after the S&P Global Purchasing Manufacturer’s index, which reflects business activity in the United States, returned to expansion for the first time in eight months in February. The 50.2 reading, up from 46.8 in January, was buoyed by a robust services sector, according to a survey.

The report added to a recent slew of economic data which has painted a picture of a resilient economy, which continues to perform against a backdrop of multiple rate-rises by the central bank in 2022 aimed at tamping down inflation.

With inflation still far from the Fed’s 2% target, and the economy retaining much of its vigor, money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

“Today, the realization is that the Fed is not kidding around about higher for longer, and in fact it might be a little bit higher for a little-to-a-lot bit longer,” said Carol Schleif, chief investment officer at BMO Family Office. (Reuters)