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Benchmark stock indices came under selling pressure as investors were worried over elevated inflation and possible interest rate hike by the RBI and global central banks to tame inflation. For the week, the Sensex fell 0.10% to 64,886.51 and the Nifty 50 index lost 0.23% to 19,265.80.
In broader markets, the Nifty Midcap 100 index jumped 1.73% to 38,471.25 and the Nifty Smallcap 100 index gained 1.59% to close at 11,869.45.
Top losers were Pharma [-1.61%], PSU Bank [-1.58%], Oil & Gas [-1.34%], Healthcare [-1.25%], and Auto [-0.18%]. Top gainers were Private Bank [1.59%], IT [1.01%], Consumer Durables [0.64%], Media [0.64%], and Realty [0.52%].
For the week, FIIs were net seller for Rs 4,895.3 crore and DIIs were net buyers for Rs 8,496 crore in the cash segment.
The Indian rupee depreciated by 6 paise to 82.65 against the US dollar on Friday.
Company News
Reliance Industries (RIL): The Qatar Investment Authority will invest $1 billion in Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries, for a stake of 0.99%. The investment values the company at a pre-money equity value of $100 billion.
In other news, RIL and Oberoi Hotels will jointly manage three properties across India and the UK. Properties include Anant Vilas in Mumbai, Stoke Park in the UK, and a new project in Gujarat.
Tata Power: The company’s step-down subsidiary, Tata Power EV Charging Solutions, has joined hands with Zoomcar for offering seamless EV charging infra solutions. This collaboration aims to promote Tata Power’s EZ Charge points on the Zoomcar platform and will focus on supporting existing and aspiring EV owners along with Zoomcar’s existing customers.
Union Bank Of India (UBI): The state-owned lender has raised Rs 5,000 crore Via QIP. The bank has allotted 57.77 crore shares at Rs 86.55 apiece, a discount of 4.99% to the floor price. More than 5% of equity shares offered were allotted to Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, LIC, PNB Paribas Arbitrage, and Morgan Stanley Asia (Singapore).
Hindalco Industries: The company said that it plans to invest Rs 2,000 crore in a copper and e-waste recycling facility in India. Further, the company also plans to invest another Rs 2,000 crore in a project with Indian Railways for the Vande Bharat trains. The company is also looking at scaling up electric vehicle manufacturing in India, as the company is working closely with original equipment manufacturers (OEMs) to co-develop and manufacture critical components. Shares of the company closed 2.42% higher.
One 97 Communications (Paytm): Shares of the company rose over 2% after the company said that it is investing in AI to build Artificial General Intelligence software stack. In its letter to shareholders, the company said it estimates 500 million payment consumers and 100 million merchants, and also expanding into areas like health and retail. Further, the company is focused on building advanced AI capabilities to manage risks and frauds, while complying with regulatory guidelines. Paytm’s partnership with PayPay Japan and the possibilities of the Open Network of Digital Commerce (ONDC) initiative add to its growth prospects, the company said.
Coforge: The company has launched Coforge Quasar, a Gen AI Platform designed to build Enterprise AI capabilities. Coforge Quasar comes pre-loaded with a comprehensive set of 100+ APIs, readily available for integration. The platform features a modular and scalable architecture, and boasts an array of 100+ pre-built cognitive as well as generative use cases, facilitating the creation of out-of-the-box solutions.
Vedanta: The mining company has been granted an arbitration award that supports its position in the Rajasthan block case, the company said in an exchange filing. The company said that according to the terms of the production sharing contract for the Rajasthan block, there is no obligation to pay additional profit petroleum.
Tata Communications: The company’s Financial Resource Raising Committee has finalized the issue of non-convertible debentures (NCDs) worth Rs 1,750 crore. The company will issue 1,75,000 rated, unsecured, redeemable, listed NCDs with a face value of Rs 1 Lakh on private placement basis. The said debentures will be allotted on 29 August 2023 and will mature after three years from date of allotment. The NCDs are proposed to be listed on the wholesale debt market segment of the National Stock Exchange of India (NSE).
Astra Microwave Products: The company has received orders worth Rs 158 crore from ISRO, DRDO, and DPSU for the supply of satellite sub-systems, airborne radar, sub-systems of radar, and EW projects.
Piramal Enterprises: The company said that its board has approved the public issuance of non-convertible debentures (NCDs) for up to Rs 3,000 crore. The public issuance of Rs 3,000 crore will take place in one or more tranches.
Adani Total Gas: The company’s subsidiary, Adani TotalEnergies E Mobility, has partnered with Prakriti E-Mobility to develop electric vehicle charging infrastructure in New Delhi with 200 EV charging point. The partnership will function on a revenue sharing model.
Vodafone Idea: The debt-ridden telecom operator plans to clear about Rs 2,400 crore of dues to the government by September, PTI reported citing sources. The company will clear dues for the June 2023 quarter and spectrum instalment with applicable interest by September, the sources said. Vodafone Idea had to pay a licence fee of around Rs 770 crore by July and Rs 1,680 crore as the first instalment for the spectrum it won during the auction held last year.
Global Markets
The US markets ended mixed for the week as investors gauged the the economic data, and rate outlook message from the Fed Chair Jerome Powell. NVIDIA reported better-than-expected results beating analysts’ estimates and boosting investor optimism. However, investor sentiments were dented after financial stocks fell as S&P Global downgraded its credit ratings of five US regional banks and consumer confidence declined due to elevated inflation. The Nasdaq closed higher by 2.26%, the S&P 500 index gained 0.82% higher, and the Dow Jones Industrial Average fell 0.45%.
Meanwhile, durable goods orders, excluding defense and transportation (a proxy for business investment) rose 0.1% in July as against a 0.4% contraction in June. Initial jobless claims last week fell more than expected, the Labor Department reported Thursday. Data showed first-time filings for unemployment benefits stood at 2,30,000 for the period ended August 19, a decline of 10,000 from the preceding week.
Chinese stocks ended lower for the week as investors were concerned over the country’s property sector and economic growth outlook. The CSI 300 index dropped 1.98% and the Shanghai Composite index tanked 2.17% and the Hang Seng inched up 0.03%. The People’s Bank of China cut its one-year loan prime rate by 10 basis points to 3.45%, but held the five-year LPR at 4.2%.
Japanese equities rallied during the week with the Nikkei 225 index rose 0.6% and the broader Topix jumped 1.3%. The core inflation rate for Japan’s capital Tokyo came in at 2.8% for August. Overall inflation for Tokyo came in at 2.9%, lower than the 3.2% seen in July. Japan’s flash PMI for August stood at 54.3, higher than the previous month’s reading of 53.8. Flash composite PMI rose to 52.6 in August, up from 52.2 in July.