– Blackstone set to seal VFS deal at over $2 billion valuation
– October-December hiring intent touches 18-month peak
– Banks may post sharp jump in Q2 profit
– Srei Group Promoters move Bombay HC
Now lemme give you a quick glance on the state of the markets.
Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 147 points higher at 8:40 hours (IST). Asian stock markets mostly opened higher on Thursday, extending gains on Wall Street as US congressional Republicans offered a compromise in high-stakes talks on lifting the US debt limit. MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 1.30 per cent.
Elsewhere, the yield on 10-year Treasuries ticked up to 1.54%. The safe-haven dollar held close to a 14-month high against the euro on Thursday as a surge in energy prices fuelled worries that inflation could crimp economic growth while also prodding the Federal Reserve to act sooner to normalise policy. Oil prices dropped for a second session Thursday, under pressure from an unexpected rise in US crude stocks that raised concerns over demand after prices rallied to multi-year highs. Brent crude slide 2 cents, to $81.06 a barrel.
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That said, here’s what is making news.
An ET study shows the correlation between crude oil prices and Nifty’s movement has been positive over the last two decades. In the past two decades, the benchmark Nifty has rallied in six out of the nine times when crude prices ran up. In the month after the rally, the stock benchmark gained on five out of the nine times. The losses on three out of the four times have been less than 2%. Similarly, in the three-month period after the crude oil’s price jump, Nifty rose on six out of the nine occasions. Analysts say stocks and crude mostly tend to move in tandem as both these assets respond to risk sentiment similarly.
Whenever traditionally minded investors think they finally have their heads wrapped around cryptocurrencies’ role in financial markets, the digital asset class always seems to prove them wrong. The ink had barely dried on analysis pointing out that Bitcoin and stocks were moving in the same direction (downward) in September when that positive correlation quickly reversed this month. As it stands now, the S&P 500 is down about 5% from its last record on Sept. 2, while the biggest cryptocurrency is up 10%.
The stock of Tata Power Company has gained 33 per cent in a month after staying range-bound for the previous five months. The trend reversal is on expectations that the impact of rising coal prices on the company’s financials will be limited since the company has taken steps to reduce losses at its Mundra thermal plant by lowering power generation and has subsequently increased production at its Indonesian coal mines to take advantage of higher global prices.
LASTLY,
Aditya Birla Sun Life Asset Management Company could list at a 4-5% above its IPO price of ₹712 per share if its premium in the unofficial grey market is to go by. Analysts said though the valuation of the stock is cheaper compared to its listed peers, investors might hold back from bidding up prices aggressively in the wake of the recent market weakness. Its grey market premium had fallen to as low as ₹10 per share on Tuesday but stabilised to ₹30-35 on Wednesday. Around the time of the IPO process, this premium was around ₹40 per share, off its high of around ₹70 in the third week of September.
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NOW Before I go, here is a look at some of the stocks buzzing this morning…
Tata Power on Wednesday announced that it has roped in renewable energy artificial intelligence company BluWave-ai. In a statement, the company said it has signed a three-year commercial agreement with BluWave-ai.
Realty firm Macrotech Developers, which markets properties under the Lodha brand, on Wednesday reported an 88 per cent growth in its sales bookings to Rs 2,003 crore for the September 2021 quarter. In London business, Macrotech Developers achieved a sales booking of Rs 1,450 crore in the September quarter.
Inox Wind on Wednesday said its board has approved the issuance of preference shares worth Rs 1,100 crore to its promoters. The decisions in this regard were taken in a board meeting held on October 6 this year, according to a BSE filing.
Subhash Chandra, founder and chairman emeritus of Zee Entertainment Enterprises (ZEE) on Wednesday called out Invesco’s requisition for removal of MD & CEO Punit Goenka and reconstitution of the company’s board, a “clandestine attempt” for an “illegal” takeover of the company.
