Market Beats

For global brokerage firm CLSA, low margin of safety and mean reversion are derating risks for Indian equities. “A simple valuation mean reversion anchored on bond yields indicates fears of 30% downside in the Nifty,” CLSA warned in its India market strategy report.

NSDL data shows that FIIs sold Indian stocks worth around Rs 7,624 crore in September, pulling Sensex down by over 2,100 points or 3.5% during the month.

Along the way, the summer rally faltered even after the S&P 500 recouped half its bear-market decline incurred between January and June, defying a 50% indicator that’s touted as a tool with a perfect record of calling the start of a new bull. The June low gave way, as did a series of round numbers and key trendlines such as the 100-day average.

The Fed has lifted interest rates five times this year, including three unusually large three-quarter-point increases, and Brainard reiterated that it would need to restrict the economy for some time to make sure inflation was back under control. But she also emphasized that future rate increases would depend on incoming data, suggesting that the Fed will keep an eye on the economy as it slows down and calibrate its moves accordingly.

In this week, foreign institutional investors (FIIs) sold equities worth Rs 15,862.48 crore, while domestic institutional investors (DIIs) bought equities worth of Rs 15,988.29 crore

But accelerating policy tightening elsewhere, particularly in the United States, has cut into the yield advantage. With the Aussie and Kiwi both hyper-sensitive to swings in risk sentiment, policymakers may have little ability to arrest the slide.

"The September expiry, especially the second half was dominated by the bears. However, the October series has started on a strong footing. Although the market is not yet out of the woods, the downside looks restricted from the current level. Overall structure shows that the index can witness sideways to positive action & can test 17500 on the upside."

Many investors believe the wild moves will continue until there is evidence that the Fed is winning its battle against inflation, allowing policymakers to eventually end monetary tightening. For now, more hawkishness is on the menu.

"I’ve found running a sure shot of recovering from the bad days. When you run, blood circulation to the brain increases and the part of your brain that responds to stress and improves your mood is stimulated. Incorporating this habit into one’s daily routine transforms the day and is a high return time investment. For example, running would help you be calmer, have more patience, help you think clearly, and even help you sleep better."

The rate hike was decided by a majority of 5 out of 6 members. The policy pegged India's GDP growth at 7% during the financial year 2023 and maintained inflation at 6.7% for the same period. Going forward, RBI will remain resolute and continue with its efforts to ensure price stability as well as financial stability, while supporting growth.

On Friday, RBI announced another 50 basis points increase in its benchmark repo rate, which is likely to be passed on by banks to individual borrowers just like it has been over the last five months. As a result, home, car and loans for personal consumption are set to get costlier. One basis point is 0.01 percentage point.

The government's fiscal deficit at the end of August was 32.6% of the full year estimate, in line with 31.1% deficit last year during the same period. In absolute terms the fiscal deficit for April-August was ₹5.41 lakh crore.

The country's largest and most profitable retailer is in the process of converting nearly 90 Brand Factory stores into Fashion Factory outlets that will offer discounts on both leading and its in-house fashion brands throughout the year.

In view of representation received from credit rating agencies, it has been decided to extend the date of applicability of the standardised industry classification to November 30 2022, the Securities and Exchange Board of India (Sebi) said in a circular.

This will also enhance the confidence among investors, particularly non-institutional investors, as the platforms would be provided by Sebi-regulated intermediaries.

Sebi's latest decision follows the Franklin Templeton episode, in which the fund house's few executives were accused of redeeming their holdings in the schemes ahead of the six debt schemes shutting for redemptions.

The Fed got some relief on Friday from a University of Michigan survey that showed consumers see inflation five years from now at 2.7%, its lowest reading of longer-term inflation expectations since April 2021.

“Pre-filing of an offer document is a well-established procedure in several international jurisdictions. It is a move in the right direction by the regulator aimed at preserving the confidentiality of nuanced business and financial information from competitors,” said Arka Mookerjee, partner at JSA, a leading national law firm.

Simultaneously, the price of gas from difficult and newer fields like the ones in Reliance Industries Ltd and its partner bp plc operated deepsea D6 block in KG basin, was hiked to USD 12.6 per mmBtu from USD 9.92, the order said.

Further, the regulator allowed retail investors to bid for the unsubscribed portion of the institutional segment in the offer for sale, it said in a release.

The direction came after complaints against 15 entities, who were allegedly involved in the activities of rendering investment advisory for the period April-November 2019 without obtaining requisite registration from the market watchdog.

At present, all asset management companies (AMCs) are required to authenticate redemption transactions using two-factor authentication for online transactions and signature method for offline transactions.

The total reserve price of these properties is pegged at about Rs 30 crore and the regulator has appointed C1 India as the e-auction provider. Online registration and e-auction will be conducted through Quikr Realty.

Domestic brokerage house ICICI Direct is bullish on the company’s prospects.

The Dow Jones Industrial Average fell 0.65%, to 29,034.83, the S&P 500 lost 0.61%, to 3,618.17 and the Nasdaq Composite dropped 0.53%, to 10,681.01.

At present, all asset management companies (AMCs) are required to authenticate redemption transactions using two-factor authentication for online transactions and signature method for offline transactions.

The Securities and Exchange Board of India said after a meeting of its board that companies would have to disclose key performance indicators, details of pricing of shares based on past transactions and past fund raising from its investors.

“Given the volatility in the current markets and the limited window available under the currently filed DRHP, Sterlite Power has decided to withdraw the DRHP. However, it remains observant of the market and will consider re-filing DRHP in the future," said Pratik Agarwal, managing director, Sterlite Power.

On the weekly chart, the index formed a small negative candle with a long lower shadow, which suggests the formation of a bullish hammer-type candle pattern at the lows.

​We considered only companies with a market cap of over Rs 2,500 crore, (Data Source: ACE Equity). Here are the key strong points of the stocks according to Trendlyne.com SWOT analysis.

“On the stressed asset side, I think it is a good move because while we have tried everything and nothing has succeeded 100%, nothing has failed 100%, too. If we have more alternatives like the Western markets, I think that will be a good move. Right now, a lot of assets are classified as fraud because of the fund division. Those cannot be sold through the NCLT route. ”

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Manish Gupta, chairman of Insolation Energy, said “the company is overwhelmed by the confidence of the investors shown on us. We are committed to perform and try to match the expectation of our investors. The company will be among top 10 Solar brands in India both in terms of capacity and sales in next two years.”

Pratik Agarwal, Managing Director of Sterlite Power, said that given the volatility in the current markets and the limited window available under the currently filed DRHP, it has been decided to withdraw the DRHP.

The 30-share BSE Sensex closed up 1016.96 points at 57426.92

Analysts toned down their optimism on a clutch of stocks part of the Nifty 50 as a swashbuckling rally amid persistent global macro uncertainty made theirm cautious over valuations.

In the Nifty50 index, 41 stocks closed in the green, while 9 stocks ended in the red.

The NSE Nifty index closed 276.25 points up at 17094.35

The Nifty Auto index closed 1.62 per cent up at 12699.3.

GPT Infraproj, Trans & Rectif, Insecticide Ind, RPG Life Sci and Lancer Container Lin, hit their fresh 52-week highs during the day.

In the Nifty pack, 41 stocks closed in the green, while 9 stocks ended in the red.

The 30-share BSE Sensex closed up 1016.96 points at 57426.92

The 30-share BSE Sensex closed up 1016.96 points at 57426.92

At 3:08 pm, the stock was trading at Rs 245 on BSE, up 3%. It hit the day's high of Rs 249 on BSE. The stock has been on an uptrend for the last three months, recording gains of nearly 58%.According to the company’s BSE filing, the realty player approved the consolidation of the partnership interest.