Global stock markets wrapped up their worst performances in years on Friday before heading into 2023 under recession fears following Russia’s invasion of Ukraine, high inflation and rising interest rates. Wall Street saw its worst annual drop since 2008, with the S&P 500 index down around 20% and the tech-heavy Nasdaq losing about 30% for the year.
Reliance Securities Stock in Focus for Today: Sail
STOCK IN FOCUS
SAIL (CMP 83): We expect demand improvement and better pricing in 2HFY23 with likely pick up in infrastructure activities and government’s turn key projects going ahead. Therefore, we reiterate our BUY rating on the company with a Target Price of Rs95.
SUNPHARMA (PREVIOUS CLOSE: 1,001) BUY
For today’s trade, long position can be initiated in the range of Rs996-
991 for the target of Rs1,016 with a strict stop loss of Rs984.
ONGC (PREVIOUS CLOSE: 147) BUY
For today’s trade, long position can be initiated in the range of Rs145.50-
144 for the target of Rs151 with a strict stop loss of Rs142.
MUTHOOTFIN (PREVIOUS CLOSE: 1,063) SELL
For today’s trade, short position can be initiated in the range of
Rs1,068-1,074 for the target of Rs1,026 with a strict stop loss of Rs1,092.
Sensex remains flat at the preopen session; TCS, Maruti Suzuki, Adani Power in focus
Confident to surpass 700MT production target in FY’23 but price revision crucial: Coal India chief
Coal India chairman Pramod Agrawal remained confident in surpassing the ambitious 700 million tonne production target by March 2023 and said a “price revision is essential” for the dry fuel to get the company compensated adequately.
It will be another feather in coal India’s cap, once the company meets the annual production target with over 12 per cent growth for the first time set by the government, while keeping the coal price capped for nearly five years to support the nation containing the inflation to some extent.
In 2021-22, the production was 622.6 million tonne.
The Kolkata-headquartered company is extracting more coal to meet India’s growing energy demand, but at the same time, it was “taking several measures to reduce emissions to support the country’s net zero target by 2070”. (PTI)
Sah Polymers IPO: GMP, subscription status on day 2 of the issue
The initial public offer (IPO) of Sah Polymers was subscribed 86 per cent on the first day of subscription on Friday, December 30, 2022. The initial share-sale received bids for 48,04,470 shares against 56,10,000 shares on offer. The price band of the issue, which will conclude on Wednesday, January 4, 2023, has been fixed at ₹61 to ₹65 per share.
As per market observers, Sah Polymers shares are commanding a premium of ₹5 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Thursday, January 12, 2023. (Read More)
GST revenues grow 15% to nearly ₹1.50 lakh crore in December
The collections from Goods and Services Tax (GST) grew by 15 per cent to over ₹1.49 lakh crore in December 2022, indicating improved manufacturing output and consumption demand, besides better compliance.
This is the 10th month in a row that the revenues have remained above the ₹1.4 lakh crore mark. The collection in November was about ₹1.46 lakh crore.
“The gross GST revenue collected during December 2022 is ₹1,49,507 crore, of which CGST is ₹26,711 crore, SGST is ₹33,357 crore, IGST is ₹78,434 crore (including ₹40,263 crore collected on import of goods) and Cess is ₹11,005 crore (including ₹850 crore collected on import of goods),” the ministry said in a statement.
The revenues for December 2022 are 15 per cent higher than the GST collection in the same month last year, which itself was close to ₹1.30 lakh crore. (PTI)
Stocks to Focus: Maruti, TCS, Adani Power, Torrent Power, Tata Motors, IEX, Shriram Finance, Kalpataru Power Transmission, Coal India, IOB
Maruti Suzuki: Maruti Suzuki India Ltd on Sunday reported a 9 per cent decline in total wholesales at 1,39,347 units in December 2022 compared to the year-ago month. The company had clocked a total sales of 1,53,149 units in the same month in 2021, Maruti Suzuki India (MSIL) said in a statement. Total domestic wholesales were at 1,13,535 units last month as against 1,26,031 units in December 2021, down 9.91 per cent, it added. (Read More)
2023 will be ‘tougher’ for global economy, says IMF’s Georgieva
The International Monetary Funds’ (IMF) Managing Director Kristalina Georgieva has said that 2023 is going to be a ‘tougher’ year for the global economy, tougher than the one left behind in 2022. Georgieva said this during an interview on Sunday morning on the first day of the new year.
The global economy’s new year (2023) is going to be “tougher than the year we leave behind,” IMF’s Georgieva said on Sunday. She cited the simultaneous slow down of the United States, China and the European Union’s economies for the same. (Read More)
INDIA BONDS-Bond yields likely to rise on elevated Q4 state debt supply
Indian government bond yields are expected to rise on Monday, the first trading session of 2023, as states announced a bigger-than-expected borrowing schedule for the January-March quarter.
The benchmark 10-year yield is likely to move in a 7.32%-7.37% band, a trader with a private bank said. The yield ended at 7.3277% on Friday.
The yield eased for the second consecutive quarter in October-December, but jumped 87 basis points in 2022, its biggest such move since 2009.
Indian states plan to raise 3.41 trillion rupees ($41.22 billion) by selling bonds in 13 weekly auctions between January and March, sharply higher than market expectations of 2.70 trillion rupees to 3.00 trillion rupees. (Reuters)
Multibagger stock to enter into new business segments, scrip hits upper circuit
With a market valuation of ₹108.32 Cr, Gautam Gems Ltd. is a small-cap company that operates in the consumer discretionary industry. The company manufactures, exports, and imports rough and polished diamonds. The company’s registered office and corporate headquarters are in Surat, India’s diamond capital. The business has declared its intention to venture into a new product.
On Friday, the company said in a stock exchange filing that “As we know India has a massive demand for energy to fuel its rapidly growing economy. Today, we are a power surplus nation with a total installed electricity capacity of over Four lakh MW. (Read More)
Cryptocurrency prices today: Bitcoin, ether gain marginally; dogecoin, Shiba Inu fall
In cryptocurrencies, Bitcoin price today rose with the world’s largest and most popular digital token trading almost flat with a positive bias at $16,566. The global cryptocurrency market cap today remained below the $1 trillion mark, as it was flat in the last 24 hours to $828 billion, as per the data by CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, was also trading marginally higher at $1,195. Meanwhile, dogecoin price today was trading about a per cent lower at $0.06 whereas Shiba Inu gained was down at $0.000008. (Read More)
Budget 2023: PHDCCI pitches for increasing health budget by 30-40%
Industry body PHDCCI on December 29 said the health budget should be increased by 30-40 percent as there is a growing need for health facilities and infrastructure across the country. Making the suggestion for the forthcoming Union Budget, Saket Dalmia, President of PHDCCI, said the budget for health has seen a rise of about 16 per cent in absolute terms between budget estimates of 2021-22 and 2022-23.
The major focus could be on a widespread campaign for healthy living, which is the need of the hour to build up a healthy human resource for the country. (Read More)
Buy or sell: Vaishali Parekh recommends 2 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today. Here we list out full details in regard to those two shares:
1] Canara Bank: Buy at ₹333, target ₹345, stop loss ₹328; and
2] Gujarat Alkalies & Chemicals: Buy at ₹767, target ₹788, stop loss ₹757. (Read More)
Domestic passenger vehicles sales rise 23 pc to record of 37.93 lakh units in 2022
Domestic passenger vehicles sales rose by 23 per cent to a record of 37.93 lakh units in 2022 led by the likes of Maruti Suzuki, Hyundai and Tata Motors as the companies rode on easing of pandemic-related challenges and semiconductor shortages to cash in on pent up demand, specially for SUVs. Other manufacturers like Toyota Kirloskar Motor and Skoda India also reported record sales in 2022.
“The industry wholesales in January to December 2022 were just short of 38 lakh units. It was 37.93 lakh units against 30.82 lakh in 2021, which is a growth of 23 per cent,” Maruti Suzuki India Senior Executive Officer, Marketing & Sales Shashank Srivastava told reporters in a virtual conference. He further said the 2022 wholesales are “the highest ever in the industry for a calendar year” and the last highest was in 2018 which was 33.3 lakh units. “So, this is about 14 per cent higher than the highest ever,” he added.
On the reasons for the growth, Srivastava said, “I believe this resurgence to the highest ever level is partly because of the better availability of semiconductors because last year was badly affected by the semiconductor issue.” (PTI)
JSW Group mulls foray into EVs, to manufacture 4-wheelers
Sajjan Jindal-led conglomerate JSW Group is considering a foray into the manufacturing of electric vehicles, according to a top official of the group. “The group had examined EV manufacturing plans earlier also but now it is becoming attractive,” JSW Group Chief Financing Officer Seshagiri Rao told news agency PTI.
The manufacturing of EVs is being discussed actively at the group level, he said while divulging JSW Group’s plan to expand its presence into more sectors.
The group is looking to manufacture four-wheelers, Rao said. He said that the manufacturing location is yet to be decided. (Read More)
Rupee falls over 11 pc in 2022 — worst since 2013
The Indian rupee depreciated over 11 per cent in 2022 against the dollar — its poorest performance since 2013 and the worst drubbing among Asian currencies — as the US Federal Reserve’s aggressive monetary policy propelled the greenback.
The rupee closed 2022 at 82.61 to the US dollar, down from 74.29 at end of 2021 as the US currency headed for its biggest yearly gain since 2015.
The Indian unit, however, fared better than some other global currencies like the Turkish Lira and British Pound.
The volatility in the forex market, prompted by a rally in global oil prices following Russia’s war in Ukraine, meant the Reserve Bank had to frequently dip into its reserves as imported inflation became a challenge for policymakers.
Since mid-October, the rupee recovered from the bouts of volatility experienced in the earlier part of the year and has been trading close to its long term trend, as per the RBI’s Financial Stability Report. (PTI)
Govt may raise interest rate subsidy for MSME exporters
The government is considering raising interest equalization or subsidy benefits extended to small and medium exporters in the annual budget for 2023-24 to relieve some of the interest rate burden on them due to a tightening monetary policy.
The proposal to extend the low-interest rate benefit is being examined at a time Indian exporters are facing headwinds on account of slowing demand in key markets amid record inflation and the threat of a global recession. (Read More)
Torrent Power in talks with ReNew to buy 1.1GW clean energy capacity
Torrent Power Ltd is in talks to buy clean power projects totalling 1.1 gigawatts (GW) from ReNew Energy Global Plc at an enterprise value of around $1.2 billion, two people aware of the development said.
Ahmedabad-based Torrent Power has submitted a non-binding offer (NBO) for ReNew’s solar and wind power assets of 350 megawatts (MW) and 750MW, respectively, at an equity value of around $450 million, the people cited above said on the condition of anonymity, adding discussions on valuation are continuing. (Read More)
US stocks sink on Friday in worst yearly performance since 2008
Wall Street stocks marked a gloomy end to 2022 on Friday, slumping to close lower in their worst annual showing in years.
Surging inflation and steep interest rate hikes to cool demand have battered markets and investor sentiment this year, on top of global shocks like Russia’s invasion of Ukraine.
“The last trading day of the year just confirmed what we had all year, a horrible stock market,” said Peter Cardillo of Spartan Capital Securities.
Key US indices saw their poorest performances since 2008, with the S&P 500 and Nasdaq both seeing double-digit drops over the past year.
The Dow Jones Industrial Average shed 0.2% to 33,147.25, while the broad-based S&P 500 lost 0.3% to 3,839.50.
The tech-rich Nasdaq Composite Index dropped 0.1% to 10,466.48 after bigger losses earlier in the day.
A year-end rally “looks to have eluded us this year” given the shocks of 2022 and vast uncertainty ahead, said Craig Erlam of the OANDA trading platform.
While analysts expect the worst of Federal Reserve rate hikes to be over, some caution that the coming months will remain tough. (AFP)
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