Author: Sandeep Singh

Trade setup for Nov 24: Nifty50 likely to stay rangebound in near term as monthly F&O series draws to a close

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Foreign institutional investors (FIIs) remained net sellers of Indian shares for a fourth straight day on Wednesday, according to provisional exchange data.

A total of 18 stocks in the BSE 500 universe — the broadest index on the bourse — touched the milestone on Wednesday:

52-week lows

On the other hand, 15 stocks hit 52-week lows:

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta shares under pressure as Street divided on dividend payout

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Vedanta” isinid=”INE205A01025″ bseid=”500295″ nseid=”VEDL” sector=”Mining & Minerals” exchange=”nse”]

Vedanta shares succumbed to selling pressure on Wednesday, a day after the oil-to-metal conglomerate’s board approved a third interim dividend for the year ending March 2023. The latest dividend, of Rs 17.5 per share, for its investors will amount to Rs 6,505 crore, taking the billionaire Anil Agarwal-led company’s total payout to investors to Rs 25,465 crore so far since April 2022.

According to Citi, the company’s dividend yield — or the proportion of a business’s shares price paid out as dividend in a year — remains attractive but may not be enough if commodity prices come down given the group’s leverage.

Vedanta Resources — which owns a 69.7 percent stake in Vedanta — has been looking to deleverage its balance sheet by  $4 billion over the next three years.

The brokerage retained a ‘sell’ rating on Vedanta shares with a target price of Rs 235 — implying a potential downside of 24 percent in the stock .

Citi also said that the outlook for aluminium and zinc is fairly muted for the next few months.

Vedanta set November 30 as the record date for the payout. In other words, investors holding Vedanta shares on November 30 will be eligible for the dividend.

Vedanta has been among the country’s top dividend-paying companies.

Deven Choksey of KRChoksey believes investors may hold on to “Vedanta shares. This is a significant amount of reward that investors have received,” he told CNBC-TV18.

“From a working point of view, it has been a sustainable earnings story, no doubt. And the Hindustan Zinc is a cash cow as far as its business is concerned…. This particular story remains convincing comparatively in the metal space. In fact, the group trying to systematically manage its balance sheet is a good sign,” he said.

The stock has gained almost 10 percent of value in the past one month — a period in which the Nifty50 benchmark has risen 3.9 percent.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trade setup for Nov 23: Nifty50 may be gearing up for an extended pullback

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Foreign institutional investors (FIIs) remained net sellers of Indian shares for a third straight day on Tuesday, according to provisional exchange data.

On the other hand, 14 scrips hit 52-week lows:

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta board approves interim dividend of Rs 17.5

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Vedanta” isinid=”INE205A01025″ bseid=”500295″ nseid=”VEDL” sector=”Mining & Minerals” exchange=”nse”]

Oil-to-metal conglomerate Vedanta’s board on Tuesday gave nod to an interim dividend of Rs 17.5 per share for its investors. The latest dividend — a third interim payout of the financial year ending March 2023 — will amount to Rs 6,505 crore, according to a company statement.

This takes the company’s total dividend to its shareholders to a total Rs 68 per share, amounting to a cumulative Rs 25,465 crore.

Vedanta Resources — which owns a 69.7 percent stake in Vedanta — has been looking to deleverage its balance sheet.

“The interim dividend will be paid within stipulated timelines as prescribed under law,” Vedanta said.

The company has set November 30 as the record date for the payment of the dividend.

A record date is the cut-off date that determines the shareholders eligible for a dividend payout. In other words, investors holding Vedanta shares on November 30 will be eligible for the dividend.

Prior to the latest dividend, Vedanta had rewarded its investors with an interim dividend each in July and April this year, of Rs Rs 19.5 and Rs 31 per share respectively.

Billionaire Anil Agarwal-led Vedanta is one of the top dividend-paying companies of the country.

Vedanta shares ended higher by Rs 2.2 or 0.7 percent at Rs 310.1 apiece on BSE ahead of the dividend announcement.

The stock has rewarded investors with a return of 10 percent in the past one month, a period in which the Nifty50 benchmark has risen 3.8 percent. 

Catch highlights of the November 22 session with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sensex rebounds nearly 350 pts from day’s low as the bulls take charge of D-Street after 3 days

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian equity benchmarks finished a choppy session higher on Tuesday, as the bulls took charge of the Street from the bears after three days, aided by gains across sectors backed by a fag-end recovery in IT shares. Globally, investors remained on the back foot weighing economic data against central bank commentary to assess the future course of interest rates.

Both headline indices finished the day half a percent higher. The Sensex ended 274.1 points higher at 61,419, having touched 61,466.6 at the strongest level of the day. The Nifty50 climbed to 18,244.2 at the end of the day, up 84.3 points from its previous close.

A total of 36 stocks in the Nifty50 basket ended higher. IndusInd, JSW Steel, NTPC, UltraTech, HDFC Life, Apollo Hospitals, Titan, Mahindra & Mahindra, Divi’s and Infosys — closing around 1-3 percent higher — were the top gainers.

Infosys, Reliance, TCS, ITC and Larsen & Toubro were the biggest boosts for both main gauges.

On the other hand, Bharat Petroleum, Nestle, Bharti Airtel, Kotak Mahindra Bank and PowerGrid — declining between 0.4 percent and 1.2 percent — were the top laggards.

The PSU banking basket outperformed the market led by gains in stocks such as Bank of Baroda, which rose 3.3 percent.

“After three days of risk aversion, the domestic market experienced a relief rally in response to a bullish trend in global markets. A tight COVID lockdown in China, however, has negatively impacted the forecast for global growth,” said Vinod Nair, Head of Research at Geojit Financial Services.

“FII interest has also reduced significantly as a result of the increased likelihood of stricter Fed policies,” he said.

FIIs have net sold Indian shares worth Rs 3,042.9 crore in three back-to-back sessions, as of Tuesday, according to provisional exchange data.

Kaynes Tech made a strong debut on the bourses, finishing the listing day at a premium of 17-18 percent over the upper end of its IPO price range.

Overall market breadth remained skewed in favoured of the bears, as 1,636 stocks rose and 1,809 fell at the close on BSE.

The rupee appreciated by 0.2 percent to settle at 81.67 against the US dollar.

Global markets

European markets began the day in the green aided by a recovery in oil shares. The pan-European Stoxx 600 index was up half a percent at the last count

ALSO READ: How low can crude oil rates go?

S&P 500 futures were up 0.4 percent, indicating a positive start ahead on Wall Street.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is RBI preparing more hikes? Here’s what has changed since its last policy action

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The RBI’s rate-setting panel — the Governor Shaktikanta Das-headed Money Policy Committee — has raised the benchmark interest rate by a total of 190 bps so far in 2022, in tandem with major central banks’ battle against surging consumer prices. Central bankers in major economies around the globe — be it in India or the US — have a difficult task at hand: Balancing inflation, or the pace of increase in the price the consumer pays for a commodity, with just enough supply of money so that it doesn’t hamper the economy two and a half years into the pandemic.

Many economists see room for more increases in the repo rate — the key interest rate at which the RBI lends money to commercial banks — as the overall pace of consumer prices continues to be beyond the RBI’s comfort zone.

Morgan Stanley Chief Asia Economist Chetan Ahya told CNBC-TV18 he expects the RBI to make a small rate cut by the end of 2023. He believes that 90 percent of Asian economies will have inflation within their central banks’ comfort zone by mid-2023.

India’s capex cycle has begun and economy should grow by 6.2% next year & 6.5% in FY25, says @MorganStanley’s Chetan Ahya. He tells @latha_venkatesh that he expects a small rate cut from RBI by end-2023 1/2 pic.twitter.com/nCJb1QpAy5

— CNBC-TV18 (@CNBCTV18News) November 17, 2022

Morgan Stanley expects GDP growth in Asia to improve 4.6 percent in the second half of 2023, from 3.5 percent currently, he said.

Also Read: RBI MPC commences — here’s what to expect from the three-day meet

So what has changed since the MPC’s last policy review?

In its last policy statement, dated September 30, the RBI’s MPC decided to hike the repo rate by 50 bps — a third straight revision of 50 bps and a fourth overall in the current tightening cycle.

However, the panel’s resolution was not unanimous — a first in the post-pandemic era. While Governor Shaktikanta Das and four other MPC members voted to raise the repo rate by 50 bps, one member, Ashima Goyal, voted to lift it by 35 bps.

It is this dissent that many economists read as an early sign of at least some moderation, if not an end, to the current pace of hikes.

The MPC maintained its retail inflation forecast for the year ending March 2023 but lowered its GDP projection by 20 basis points.

Some see easing crude oil prices as a relief to the overall CPI but suggest a ‘wait and watch’ approach before taking a call on an end to the current cycle of rate hikes.

Benchmark oil prices have declined sharply in the past few days amid fears that fresh lockdowns in China thanks to resurgent COVID infections will hamper global demand. Falling oil prices are positive for countries such as India, which meets the lion’s share of its oil requirement through imports.

ALSO READ: VIEW | MPC’s Nov 3 meeting — non-event in the near term; important in the long term

The MPC met again in November to discuss a report it would submit to the government explaining why inflation had stayed out of control. This meeting was not to discuss policy action as it is mandated by law, created in 2016, for the RBI to come up with a report in case it fails to tame inflation for three back-to-back quarters.

What to expect from RBI from now on?

Madan Sabnavis, Chief Economist at Bank of Baroda, believes there is scope to increase the repo rate by another 50-60 bps by March.

“We can look at 6.5 percent as the terminal repo rate by March. It will be two increases of 25-35 bps (each). There is no need for an aggressive 50 bps as inflation has started to slow down,” he told CNBCTV18.com.

The consumer inflation-targeting MPC aims to keep inflation within 2-4 percent — something it has failed to achieve since late last year.

“As inflation has moved down for October and will continue to do so in the next few months, though it may remain above 6 percent, there is scope for slower rate hikes now,” Sabnavis said.

Many experts are banking on the resilience of the Indian economy compared with major economies around the globe.

Global economic activity is undergoing a sharper-than-expected slowdown, with higher inflation in developed countries than their emerging market counterparts, SBI Chairman Dinesh Kumar Khara pointed out in an interaction with CNBC-TV18 this month. 

“Financial conditions in most of the regions have got tightened. Russia’s invasion of Ukraine and the lingering COVID-19 pandemic weigh heavily on the outlook. However, in such an uncertain and fragile global economic environment, the Indian economy has shown its resilience all these years,” he said.

“Indicators of aggregate demand indicate that the onset of the festive season and the pent-up demand kept the growth impulse very strong,” Khara added.

Economists will look for an official reading on India’s gross domestic product (GDP) in the July-September period, due at the end of November.

Catch the latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

The big buyers and sellers in Delhivery shares

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Delhivery” isinid=”INE148O01028″ bseid=”543529″ nseid=”DELHIVERY” sector=”Courier Services” exchange=”nse”]

Delhivery shares slipped on Tuesday, a day after US-based private equity firm Carlyle sold a 2.5 percent stake in the Gurugram-based logistics service provider in a bulk deal. According to preliminary data from NSE, CA Swift Investments — a special-purpose vehicle owned and controlled by Carlyle Group — sold a total of 1.8 crore shares in Delhivery at Rs 330.02 apiece.

The Delhivery stock declined by as much as Rs 7.3 or 2.1 percent to Rs 338 apiece on BSE. 

On the other hand, Morgan Stanley Asia (Singapore) —  an investment management company part of the Morgan Stanley group — purchased 48.5 lakh Delhivery shares at Rs 330 apiece.

According to shareholding data, at the end of the July-September period, CA Swift Investments had held a 5.07 percent stake in Delhivery.

Catch the latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MarketBuzz Podcast With Ekta Batra: Sensex and Nifty50 likely to open higher today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian equity benchmarks BSE Sensex and NSE Nifty50 are likely to open higher on Tuesday, shrugging off largely negative moves in other Asian markets amid concerns about the resurgent lockdowns in China owing to rising COVID infections. Singapore Exchange (SGX) — an early indicator of the Nifty index — fell as much as 61 points or 0.3 percent to 18,266 ahead of the opening bell on Dalal Street.

About MarketBuzz: The CNBCTV18.com podcast on the big themes, vital news and key events that you should know before the opening bell, powered by CNBC-TV18 anchors. MarketBuzz is your daily morning briefing by CNBC-TV18 research analysts and anchors Sonia Shenoy, Ekta Batra, Anisha Jain, Nigel D’Souza and Mangalam Maloo to kickstart your stock market investing. Subscribe to our free podcasts on Audioboom or listen on the featured podcast page on CNBCTV18.com.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is a breakout in the making as D-Street enters expiry week? Here’s what experts say

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian equity benchmark Nifty50 is set to end the current month’s derivative series about three percent higher — a second straight positive series — owing to FII inflows and falling crude oil prices with the participation of the heavyweight banking pack. This will make November a fifth positive series in 2022 — a year which saw the 50-scrip gauge shying away from scaling fresh record highs on multiple occasions from within inches of the October 2021 peak.

Why does expiry matter?

The period closer to the expiry of a monthly series is typically marked with higher volatility owing to more intense activity as traders scramble to square off their positions.

In other words, higher activity in the derivative market — which comprises futures and options contracts — closer to the expiry day or the last Thursday of a trading month — creates ripples in the cash market as traders carry forward or square off their positions.

A derivative contract of either type is a financial contract whose value is derived from an underlying asset, say the price of a stock in the cash market. Derivative contracts, which typically leverage instruments, command a higher potential risk and reward.

What to expect this week

Dalal Street has about three more sessions in the current month’s derivative series. As of Monday, the Nifty50 is up 570.7 points or 3.2 percent in the November series, which began on October 28.

The Nifty50 could fall some more and then bounce by the time of expiry on November 24, Deepak Jasani, Head of Retail Research at HDFC Securities, told CNBCTV18.com.

“The index has been correcting over the past three days but is close to support at 18,100. Market activity has been lacklustre with low volatility and VIX at a multi-month low… FIIs have been more on the long side, even in the futures market,” he said.

Catch the latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trade setup for Nov 22: More upside on the cards if Nifty50 holds 18,000 decisively

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Foreign institutional investors (FIIs) remained net sellers of Indian shares for a second trading day on Monday, according to provisional exchange data.

52-week lows

On the other hand, 11 scrips hit 52-week lows:

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow