Indices jump at open as Sensex adds 300 pts and Nifty 100 pts with Adani stocks leading the rally

Asia’s factory activity stalls, but China a bright spot

Asia’s factory activity stalled in February with the exception of China, as slowing global demand, stubbornly high inflation and the fallout from past interest rate hikes weighed on the region’s economies, surveys showed on Wednesday.

Recovering momentum in China following its exit from stringent COVID-19 policies late last year offered hopes of a more subdued downturn in the global economy, as the U.S. Federal Reserve stays on its higher for longer interest rate path.

China’s manufacturing activity expanded at the fastest pace in more than a decade in February, according to an official index, while a private sector survey also showed activity rising for the first time in seven months.

India and Australia saw economic growth slow in the quarter to December, and South Korea’s exports fell in February for a fifth straight month, highlighting the pain slowing global demand was inflicting on the region’s manufacturers. (Reuters)

Global markets: SGX Nifty, US market, other points that will move Indian market

Global markets today: .he markets around the globe remained muted, US stocks fell in late trade on Tuesday, and Asian markets also struggled on Wednesday morning continuing the subdued sentiment as the dollar continued to stay firm. Higher interest rates for longer coupled with slower growth expectations kept the Market sentiment downbeat making the investors go risk-off.

Here we list out important global market indicators that may drive the Indian stock market today: (Read More)

Sensex preopens flat on Wednesday with Adani Group, Paytm, SBI in focus

Apple supplier Foxlink seeks to resume production after fire at India facility

Taiwanese Apple supplier Foxlink announced on Wednesday that it is making efforts to resume production after a fire broke out at one of its plants in southern India, causing the suspension of operations at the facility that produces iPhone charging cables.

The factory is located in the Chittoor district of India’s Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week. (Read More)

Reliance Securities Stock in Focus for Today: Ashok Leyland

STOCK IN FOCUS

Ashok Leyland (CMP 145): In view of the strong products basket, new launches across segments and CV up-cycle over next 1-1.5 years, we recommend BUY rating on ALL with a Target Price of Rs185, valuing the stock at P/E multiple of 17x.

Intraday Picks

TECHM (PREVIOUS CLOSE: RS1,100) SELL

For today’s trade, short position can be initiated in the range of Rs1,115-

1,125 for the target of Rs1,075 with a strict stop loss of Rs1,142.

BAJAJFINSV (PREVIOUS CLOSE: RS1,335) SELL

For today’s trade, short position can be initiated in the range of Rs1,344-

1,352 the target of Rs1,305 with a strict stop loss of Rs1,375.

ULTRACEMCO (PREVIOUS CLOSE: RS7,261) BUY

For today’s trade, long position can be initiated in the range of Rs7,240-

7,200 for the target of Rs7,390 with a strict stop loss of Rs7,130.

INDIA BONDS-India bond yields seen tad lower after weaker-than-expected growth

Indian government bond yields are expected to fall marginally in the early session on Wednesday, as weaker-than-expected growth may force the central bank to rethink its monetary policy tightening stance.

The 10-year benchmark 7.26% 2032 bond yield is expected to trade in the 7.42%-7.48% band, after closing higher at 7.4623% on Tuesday, a trader with a private bank said.

The yield rose 12 basis points in February, the biggest monthly rise since September.

“Weaker growth should at least make a case for the Reserve Bank of India to consider the impact rate hikes are having on the growth front,” the trader said.

Economic growth slowed further in the December quarter as pent up demand eased and weakness in the manufacturing sector continued. Asia’s third-largest economy recorded year-on-year growth of 4.4% in October-December, down from 6.3% in July-September. (Reuters)

Stocks to Watch: Adani Group, Paytm, SBI, Biocon, Vedanta, Delhivery, Reliance Industries, NTPC, Ambuja Cements, and Tata Power 

The Indian stock market ended in the red for eight days in a row with Nifty breaking below the Budget day low, key support of 17,353. In the last eight sessions, Sensex has dropped 3.8% while Nifty has fallen 4%. (Read More)

Domestic LPG cylinder price hiked by ₹50 from today. Check latest rates

The price of 14.2 kg Domestic liquefied petroleum gas (LPG) cylinder has been increased by ₹50 with effect from today. With the latest revision, the domestic cylinder will cost ₹1103 per cylinder from today in Delhi as reported by the news agency ANI.

Also, the price of a 19 kg commercial LPG cylinder has been increased by ₹350.50 With this increase 19 kg commercial cylinder will cost ₹2119.50 in Delhi. New rates are effective from today. The new revised price of 14.2 Kg LPG cylinder in Delhi will be ₹1103 instead of ₹1053 from today.In Mumbai, this cylinder will be sold for ₹1102.5 instead of ₹1052.50. In Kolkata it will cost ₹1129 instead of ₹1079 and in Chennai, it will cost ₹1118.5 instead of ₹1068.50. (Read More)

Rupee gains 21 paise to close at 82.58 against US dollar

The rupee appreciated by 21 paise to close at 82.58 against the US dollar on Tuesday as suspected RBI intervention bolstered the sentiment amid continued FII outflows and firm crude oil prices.

Forex traders said the central bank’s intervention and lower commodity prices supported the local unit.

At the interbank foreign exchange market, the local unit opened at 82.69 against the American currency and finally settled at 82.58 against the greenback, registering a gain of 21 paise over its previous close of 82.79.

During the trading session, the rupee touched a high of 82.58 and a low of 82.75 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 104.70. (PTI)

Oil prices rise as China factory gains boost demand outlook

Oil prices rose for a second day on Wednesday as reports of expanding manufacturing activity in China, the world’s biggest crude importer, boosted the outlook for global fuel demand.

Brent crude oil for May was up 24 cents, 0.3%, to 83.69 a barrel at 0214 GMT. The April contract expired on Tuesday up $1.44, or 1.8%, at $83.89.

U.S. West Texas Intermediate (WTI) crude for April rose 31 cents, or 0.3%, to $77.36 a barrel after gaining 1.8% in the previous session.

Oil prices continue to be supported by expectations for a strong rebound in demand in China, the world’s second-largest crude consumer. Those expectations were further supported by data showing China’s factory activity rose for the first time in seven months in February, according to the purchasing manager’s index (PMI) published by Caixin/S&P Global on Wednesday.

Official government PMI data also published on Wednesday showed the fastest expansion in manufacturing since 2012 occurred in February. (Reuters)

Divgi TorqTransfer Systems IPO opens today: GMP, key details. Should you subscribe?

The dry spell of the mainboard IPO in 2023 seems to end as automotive component manufacturer Divgi TorqTransfer Systems’ initial public offering will be opened for public subscription on March 1 till March 3, 2023. The price band has been fixed at ₹560-590 a share. The company on Tuesday said it has raised more than ₹185 crore from anchor investors ahead of its issue.

Divgi TorqTransfer Systems IPO comprises a fresh issue of equity shares worth ₹180 crore and an Offer For Sale (OFS) of 39.34 lakh shares by investors and other selling shareholders.

As per market observers, Divgi TorqTransfer Systems shares are commanding a premium (GMP) of ₹60 in the grey market. The equity shares of the company are expected to list on March 14 on the stock exchanges BSE and NSE. (Read More)

January core sector growth rises by 7.8%, data shows

India’s combined Index of Eight Core Industries (ICI) for January increased by 7.8 per cent compared to the corresponding period of last year, said the Ministry of Commerce & Industry on 28 February.

The government data added that for the April-January 2022-23, the IIP grew by 7.9 per cent.

“The combined Index of Eight Core Industries (ICI) increased by 7.8 per cent (provisional) in January 2023 as compared to the Index of January 2022,” stated the release. (Read More)

Vedanta says confident of meeting debt repayment liabilities

Billionaire Anil Agarwal’s Vedanta Resources Ltd on Tuesday said it has enough means to meet debt repayment liabilities in the coming quarters as it looked to assuage investor concerns around its financial position.

In a statement, the firm, which is the majority owner of Mumbai-listed mining and oil and gas company Vedanta Ltd, said it is in the advanced stage of finalization to tie up USD 1.75 billion through a combination of syndicate loan and bilateral bank facilities.

Vedanta Resources said it has pre-paid all of its debt that was due for repayment till March 2023, deleveraging by USD 2 billion in the past 11 months. Further, it is confident of meeting its liquidity requirements for the quarter ending June 2023.

Vedanta Ltd, it said, continues to deliver healthy cash flows and does not have any pledge except 6.8 per cent of HZL shares.

Vedanta Ltd shares tanked 6.58 per cent to close at ₹268.45 on BSE. (PTI)

Ambuja Cements bags coal mine in Maharashtra

Ambuja Cements Ltd bagged a coal mine in Maharashtra on the second day of the commercial mines auction on Tuesday.

While Assam Mineral Development Corporation Ltd emerged as the highest bidder for a coal block in Jharkhand, Shreesatya Mines Private Ltd bagged a coal block in the eastern state.

The auction of three other coal blocks were underway.

“Forward auctions for these mines have been started on 27.02.2023 and on the 2nd day of the e-auction, six coal mines were put up for auction,” the coal ministry said in a statement.

Of the six blocks put on sale, five are fully explored coal mines and one is partially explored. (PTI)

Tata Group pauses talks to buy majority stake in bottled water firm Bisleri. Here is why

Tata Group’s talks for a majority stake in Bisleri International Pvt, one of India’s largest bottled water makers, have stalled over valuation, according to people familiar with the matter.

The Indian conglomerate had been in advanced discussions to take control of Bisleri and the parties were working on finalizing the structure of a transaction, the people said. Bisleri’s owners were looking to raise about $1 billion from a deal, the people said. Negotiations later hit a snag as the companies were unable to agree on a valuation, said the people, who asked not to be identified as the information is private. (Read More)

GDP growth slows to 4.4% in December quarter

India’s economic growth rate slowed to 4.4% in the December quarter as rising interest rates and elevated raw material prices rippled through the economy while global trade languished.

The median estimate of 20 economists polled by Mint showed that growth likely slowed to 4.7% in the December quarter.

Gross domestic product growth also slowed from 6.3% in the three months ended September and 5.2% in the year-ago December quarter. (Read More)

US stocks dip on Tuesday as consumer confidence data disappoints

Wall Street stocks finished lower following a choppy session Tuesday as consumer confidence data disappointed while US Treasury bond yields edged lower.

The Conference Board’s reading of consumer confidence fell again in February, despite analyst expectations of a pick-up as survey participants expressed worry about future employment and business conditions.

But in a favourable development for stocks, the yield on the 10-year US Treasury note retreated.

Stocks have been buffeted in recent sessions by fears the Federal Reserve will prolong its policy of aggressive interest rate hikes.

“Today, there really was no conviction in one direction or another,” said Steve Sosnick, chief strategist at Interactive Brokers.

“There weren’t many catalysts today,” he added.

The Dow Jones Industrial Average finished down 0.7% at 32,656.70.

The broad-based S&P 500 dipped 0.3% to 3,970.15, while the tech-rich Nasdaq Composite Index shed 0.1% to 11,455.54. (AFP)