– HDFC Life in talks to acquire Exide Life
– Govt working on cryptocurrency definition
– Taliban to announce new Afghan govt
– CEO, CFO of Karvy Stock Broking arrested in IndusInd Bank default case
Now lemme give you a quick glance on the state of the markets.
Dalal Street is likely to have a muted start this morning. Nifty futures on the Singapore Exchange traded 26 points higher at 8:20 hours (IST). Asian markets opened mixed on Friday as investors took heart from US rallies with investors looking ahead to US job data due later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.21 per cent.
Elsewhere, the yield on 10-year Treasuries rose one basis point to 1.29%. The dollar sank to its lowest in almost a month against major rivals on Friday, ahead of a crucial US jobs report that could spur the Federal Reserve to an earlier tapering of stimulus. Oil prices dipped on Friday after posting strong overnight gains on a weaker dollar and a bigger-than-expected fall in U.S. crude stocks and were headed for small gains on the week ahead of a highly anticipated U.S. monthly jobs report.
That said, here’s what is making news.
Domestic textile companies are expected to benefit from key initiatives and structural changes such as extension on rebates on central and state taxes and other levies till March 2024, China plus one policy of European and the US apparels brands, and the ban on Chinese cotton by the US. According to industry reports, India’s garment exports are one-tenth of China’s and one-fourth of Bangladesh’s and Vietnam’s exports despite accounting for 28% of global cotton production. This is likely to change in favour of India in the coming years.
Shares of HDFC Life Insurance have given a technical breakout after the 5.8% run-up on Thursday ahead of the company’s board meeting on Friday to discuss a share issue through preferential allotment. The stock, which has hovered around Rs 700 since December last year, broke a crucial obstacle of Rs 720 on higher volumes, paving the way for gains of as much as 12% from current levels, said analysts. The board of HDFC Life will meet on Friday to consider a fundraising plan by issuing equity shares or other securities via preferential allotment. The stock has risen 5.3% in the past six months as against 15% gains in the benchmark Nifty.
The government is planning to define cryptocurrencies in the new draft bill that also proposes to compartmentalise virtual currencies on the basis of their use cases, ET reported. Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per user case — payments, investment or utility. This would be the first time cryptocurrencies will be categorised as per the technology they use, but the government’s focus would be based on the end use of the asset for regulatory purposes. The bill is also expected to outline the tax treatment for such assets, so that it is clearly classified in the books of accounts.
LASTLY,
The stock of Maruti Suzuki India has lost 6% over the past six months, widely underperforming the 15% return of the benchmark S&P BSE Sensex. Maruti’s lacklustre show reflects the margin pressure on the country’s largest passenger vehicles (PV) maker following input cost inflation. Analysts have pruned its earnings estimates by 6.7% since the beginning of the current fiscal year, according to Bloomberg data. The trend may continue given the weak sales volume in August amid the shortage of semiconductor chips. In the first five months of FY22, the company sold 650,000 vehicles or 130,000 units a month.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Brookfield is close to buying Bharti Realty’s upscale commercial properties near Delhi airport and Gurgaon for around $1 billion. After the transaction, Bharti Realty’s Worldmark towers in
Aerocity and Gurgaon—1.6 million sq ft of office and retail
space—will be lodged under the Brookfield India Real Estate Trust.
A consortium of Indian state-owned oil firms, including ONGC and Indian Oil, are in preliminary talks with Rosneft for a stake in Russia’s massive Vostok project.
HDFC Life, the country’s largest private sector insurer, is in advanced talks to take over Exide Life in a deal that will value
the enterprise at Rs 5,000 crore.
Punjab National Bank (PNB) moved the appellate bankruptcy court on Thursday, seeking a stay on the approval to Jet Airways’ revival plan, potentially hampering efforts to restart operations at what
was once India’s largest airline.
United Spirits (USL) has outpaced Pernod Ricard in the premium segment of India’s alcohol beverages market for the first time ever in the last fiscal.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay with us for all the market news through the day. Happy investing!
