Stock Market Live Updates: Sensex, Nifty set for flat start amid global signals; Indian economy expands by 7.8% in Q1FY24

Regulatory move: SEBI proposes performance disclosure by registered intermediaries with investor safeguards

SEBI has proposed to facilitate registered intermediaries to disclose their performance to investors, while at the same time having checks and balances to protect the interest of investors against unverified claims/ performance.

“There has been a demand from registered intermediaries to showcase their performance to investors so as to establish/enhance their credibility in the eyes of investors and to help grow the reach of their servicesto investors,” SEBI in a consultation paper said

Stocks to Watch: HCLTech to acquire German automotive engineering services company ASAP Group

​HCL Technologies ​has completed the acquisition of ASAP Group, an automotive engineering services provider headquartered in Germany effective August 31, 2023.

Headquartered in Ingolstadt, Germany, ASAP is focused on future-oriented automotive technologies in areas such as autonomous driving, e-mobility and connectivity. ASAP serves top automotive original equipment manufacturers (OEM) and tier 1 suppliers in Germany. ASAP’s services portfolio comprises electrics/electronics, software, consulting, service testing and validation and vehicle development. ASAP has over 1,600 employees across nine locations in Germany.

Stocks to Watch: ITD Cementation bags Rs. 3290 crore marine contract

ITD Cementation India Limited has secured a marine contract worth approximately Rs. 3290 crores excluding GST.

Stocks to Watch: Jalan Kalrock Consortium deposits Rs 100 crore for Jet Airways revival

Jalan Kalrock Consortium on Thursday said it has deposited Rs 100 crore to Jet Airways, following NCLAT’s nod for the airline’s revival.

Economy Watch: Indian banking system’s credit growth surges; unsecured retail and rorporate loans drive momentum: Emkay Global Research

Credit growth running ahead of expectation, led by unsecured retail and corporate credit pick-up: Emkay Global Research

The Indian banking system’s growth remains robust at 14.9% YoY (ex-HDFCL) for the fortnight ended August 11, 2023 (vs. 14.7% YoY for the previous fortnight); and if the current momentum continues, it could surpass the earlier expected 12% growth in FY24. The current credit momentum is supported by aggressive growth in unsecured loans (incl. PL and Cards) as banks remain pro-risk, while underlying demand trends remain strong. Mortgages growth has moderated a bit amid elevated lending rates, but still remains healthy at 15% YoY and lenders/RE developers are looking at festive cheer for some revival. VF business is also showing a healthy growth trend, with banks now incrementally looking at used car financing business as well with the advent of online platforms. On the corporate front, NBFC and trade segments remain the key growth drivers, but even core sectors like metals and petroleum are showing healthy growth, indicating that growth is now becoming broad-based. Though economists remain divided on capex cycle revival, bankers indicate that the early signs of corporate capex revival are visible and should firm-up in the absence of any macro-shocks. We believe the impact of late weak monsoon on overall credit growth could be limited as current growth is mainly driven by strong urban consumption demand and corporate credit, but need to watch for second order impact in case food inflation spirals up

Stocks to Watch: Matrix Partners, TPG Asia, Northwest Ventures to sell stake in Five Star Finance

Market buzz is that PE investors Matrix Partners, TPG Asia & Northwest Ventures, are likely to sell stake up to 8.8 per cent via block deals In Five Star Finance. The floor price has been fixed as ₹724 and deal size is expected to be ₹1,860 crore.

Stocks to Watch: Search initiated at GlaxoSmithKline Pharma premises by Maharashtra tax authorities

GlaxoSmithKline Pharmaceuticals said that the Assistant Commissioner of State Tax Maharashtra, Mumbai, has today initiated search at certain premises of the company. The business operations of the company continue as usual, it said. The search has started today (Thursday) and hence the impact of this search is not ascertainable at this time, it further clarified.

Stocks to watch: Aditya Birla Fashion completes 29% TCNS Clothing acquisition

Aditya Birla Fashion and Retail said that it has completed the acquisition of 1.87 crore shares being 29 per cnet of the Expanded Share Capital (as defined in the letter of offer for the open offer) of TCNS Clothing Co Ltd

Stocks that will see action today: 1 September 2023

BUZZING STOCKS: Automobile stocks, Aditya Birla Fashion, GSK Pharma, Five Star Finance, Godrej Properties, Kirloskar Brothers, Container Corporation of India, Genus Power, India Pesticides, Navneet Education, MSCI-rejigged stocks

Opening Bid: September month to begin on flat note for Sensex, Nifty

The new month is likely to open on a flat note on Friday amid mixed global cues. Analysts expect consolidation phase to continue, amid strong GDP numbers. Gift Nifty city at 19400 indicates a flat opening as Nifty September futures closed at 19414 on Thursday.

Broker’s call: Piramal Enterprises (Buy)

Piramal Enterprises hosted its Investor Day on August 28, where the top management reaffirmed its earlier-stated ambition to double FY23 loan AUM by FY28 (₹1.2-1.3 lakh crore) and deliver a consolidated RoA of about 3 per cent. Importantly, the strategy to achieve this medium-term target was also reiterated as being a 70:30 retail to wholesale AUM mix.

Broker’s call: Indiamart (Buy)

IndiaMart InterMesh has a dominant market share in B2B online classified business with around 70 per cent in paid listings. The overall growth in business is led by higher value proposition for sellers and the efficient matching algorithm resulting in higher buyer satisfaction.

Day trading guide for September 1, 2023: Intraday supports, resistances for Nifty50 stocks

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

Stock to buy today: Astra Microwave Products (₹395.8)

Astra Microwave Products’ stock has been in a consolidation phase since mid-June, primarily trading within the range of ₹350 to ₹385. Recent sessions witnessed multiple attempts to breach the resistance level at ₹385, with the stock finally breaking through this hurdle and closing at ₹395.8 on Thursday. This breakout signals potential appreciation, hinting at a prospective rally on Friday.

China’s central bank announces first reserve ratio cut in 2023 to counter Yuan depreciation

China’s central bank said on Friday it will cut the amount of foreign exchange that financial institutions must hold as reserves for the first time this year, a move seen aimed at slowing the pace of recent yuan depreciation.

The People’s Bank of China (PBOC) said it would cut the foreign exchange reserve requirement ratio (RRR) by 200 basis points (bps) to 4% from 6% beginning Sept. 15, according to an online statement.

The move was to “improve financial institutions’ ability to use foreign exchange funds,” the PBOC said. – Reutters

Japanese stocks recover from initial dip amid US job data anticipation

Asian stocks showed a varied performance following a subdued session on Wall Street. Traders are anticipating Friday’s job report to assess the potential implications for Federal Reserve policy.

Commencing the trading day with a dip, Japanese stocks swiftly regained ground and moved into positive territory on Friday. This shift occurred as investors anticipated significant US job data set to be released later in the day.

During early trading, the benchmark Nikkei 225 index displayed a 0.53 percent increase, equating to 169 points, reaching 32,789. Simultaneously, the more extensive Topix index exhibited a rise of 0.82 per cent, amounting to 19 points, and stood at 2,350.

The preceding night on Wall Street saw declines in both the Dow and S&P 500. Market participants analysed inflation figures and anticipated the forthcoming job data to glean insights into potential future changes in interest rates.

The Dow concluded with a 0.5 per cent decrease, closing at 34,721.91, while the comprehensive S&P experienced a slight 0.2 per cent dip. In contrast, the technology-focused Nasdaq Composite Index made a marginal 0.1 per cent ascent.