victorybull

Author: victorybull

  • In early trade, the rupee fell 23 paise to 76.65 against the US dollar.

    Rupee advances 23 paise to 75.93

    The rupee fell 23 paise to 76.65 against the US dollar in early trade on Monday, reflecting the dollar’s surge in the international market.

    The rupee opened at 76.58 against the dollar on the interbank foreign exchange, then plummeted to an early low of 76.65 in early trades, a drop of 23 paise from its previous close.

    The rupee fell 25 paise versus the US dollar on Friday, closing at 76.42.

    According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee began down against the US dollar, pressured down by hawkish remarks from Federal Reserve Chair Jerome Powell last week.

    Meanwhile, Brent crude futures sank 2.85% to USD 103.61 per barrel, the global benchmark.

    The dollar index, which measures the value of the dollar against a basket of six currencies, increased by 0.02 percent to 101.23.

    On the domestic stock market, the 30-share Sensex was down 645.45 points, or 1.13 percent, at 56,551.70, while the broader NSE Nifty was down 189.05 points, or 1.1%, at 16,982.90.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 2,461.72 crore.

  • Rupee slips for third session in a row; oil near $113 a barrel

    Rupee slips for third session

    The rupee depreciated for the third straight session to close 10 paise lower at 76.29 against the dollar on Monday, tracking the strength of the greenback overseas, coupled with foreign fund outflows.

    At the interbank foreign exchange market, the rupee opened lower at 76.41 against the American currency, and shuttled between a high of 76.20 and a low of 76.43. It settled at 76.29, down 10 paise over its previous close of 76.19. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 100.70.

    The rupee also weakened as hawkish Fed officials and dovish ECB continued to push the bond yields higher. The benchmark 10-year bond yield traded down to 7.15 per cent after earlier rising to a high of 7.26 per cent.

    Sriram Iyer, senior research analyst at Reliance Securities, said the rupee weighed was weighed down by the rising crude prices and bond yields.

    Oil prices rose on Monday as the shut down of Libya’s biggest oil field in an already under-supplied market overshadowed signals that China’s lockdowns are weighing on its economic growth.

    Brent crude futures rose above $113 a barrel for the first time since late March. West Texas Intermediate traded around $108. Global markets face further interruptions to oil supplies after demonstrations against Libya’s PM Abdul Hamid Dbeibah shut down Sharara, the country’s biggest oil field.

  • Gland Pharma advances 9% on heavy volumes; stock hits 9-week high

    Gland Pharma advances 9%

    Shares of Gland Pharma moved higher by 9 per cent to its nine-week high of Rs 3,556 on the BSE in Thursday’s intra-day trade amid heavy volumes. In the past two trading days, it has rallied 11 per cent as compared to 2 per cent gain in the S&P BSE Sensex.

    At 09:15 am, around 5.42 million equity shares, representing 3.3 per cent of total equity of Gland Pharma, changed hands on the BSE, exchange data shows. The names of the buyers and sellers, however, could not be ascertained immediately.

    The stock is at its highest level since February 14, 2022. It had hit a record high of Rs 4,350 on August 12, 2021. At 11:40 AM; it was ruling 8 per cent higher at Rs 3,527, as against 1.2 per cent gain in the benchmark index.

    According to Motilal Oswal Financial Services, the prospects of Gland Pharma remain positive given its niche product pipeline in injectables, volume gains in existing products, wider market operations for its portfolio, a strong cash cushion for inorganic growth, and consistent compliance.

    Among Indian players present in the US, Gland appears to be the largest beneficiary from drugs under shortages due to consistent compliance and manufacturing capacity/capabilities. The company has 11 injectable products in the USFDA shortage list, which have combined sales of ~$400 million over the past 12-months.

    “The overall number of drugs under shortage in the US has declined to a 15-year low at present. However, the number of injectables facing a shortage is at its 20-year average, but is at a record high as a percentage of total drug shortages,” the brokerage firm said in a stock update. It has a ‘buy’ rating and a target price of Rs 4,040 per share.

  • India’s foreign exchange reserves fall for fifth straight week

    India's foreign exchange reserves continued its fall for the fifth straight week as the Reserve Bank of India appears to be selling dollars from its co

    India’s foreign exchange reserves continued its fall for the fifth straight week as the Reserve Bank of India appears to be selling dollars from its coffers to prevent sharp depreciation of the rupee amid a surge in global crude prices.

    The reserves fell by $2.471 billion in the week to April 8 to $604.004 billion, RBI data showed.. In the last five weeks, reserves fell by a massive $28.5 billion.

    RBI does not give reasons behind changes in forex reserves.

    The foreign currency assets, which includes holdings of dollars as well as other global currencies such as euro, pound and yen expressed in dollar terms, fell $10.7 billion in the reporting week to $539.727 billion.

  • India expected to attract $100 billion FDI in 2022-23: PHD Chamber

    India is expected to attract $100 billion foreign direct investment (FDI) in 2022-23 on the back of economic reforms and ease of doing business in recent years, industry chamber PHDCCI said on Thursday.

    It also said the current financial year is expected to attain a GDP growth of more than 8 per cent.

    However, the inflation scenario has been stoked by rising international commodity prices, particularly of crude oil, it said.

    “India is expected to attract a $100 billion FDI inflow in 2022-23 supported by various ground touching economic reforms and significant ease of doing business in recent years,” the chamber said.

    It has suggested a ten-pronged strategy to strengthen the economic growth and achieve the target of becoming a $5 trillion economy in next five years.

    The suggestions include speedy infrastructure investments, inclusion of more sectors under the PLI scheme, increase in public investments in agriculture sector, addressing the high commodity prices and shortages of raw materials.

  • ONGC, Oil India gain 3% in tandem with crude oil prices

    Shares of state-owned oil exploration & production companies like Oil and Natural Gas Corporation (ONGC) and Oil India gained 3 per cent on the BSE in Wednesday’s intra-day trade in an otherwise subdued market after oil prices surged. Crude oil prices increased around 6 per cent on Tuesday amid reports of lower supply by oil producers and easing of lockdown curbs in parts of China.

    At 10:47 AM, ONGC and Oil India were up 3 per cent at Rs 173.85 and Rs 237.20, respectively, on the back of heavy volumes. In comparison, the S&P BSE Sensex was up 0.04 per cent at 58,597 points. Upstream companies like ONGC and Oil India are expected to witness strong earnings on higher oil prices. Oil prices saw a sharp increase amid concern over supply disruption due to the geopolitical conflict in Europe in the quarter that ended March 2022 (Q4FY22). Brent prices have averaged nearly $100/bbl in Q4FY22 with nearly $30/bbl being added during the quarter end due to the Ukraine war.

    Analysts at HDFC Securities expect Brent crude price to remain elevated as Organisation of the Petroleum Exporting Countries (OPEC) supply growth is likely to lag behind global demand due to ongoing geopolitical tensions.

    “The average Brent crude price in FY22 stood at USD 80/bbl, up 79 per cent YoY, driven by recovery in global demand with opening up of economies. However, the OPEC supply is lagging behind demand growth due to Russian invasion of Ukraine. Despite the fact that no restrictions were imposed on crude oil import from Russia currently, some off-takers have shunned Russian oil due to uncertainties around insurance, shipping, etc. because of sanctions,” the brokerage firm added.

    The US Energy Information Administration (EIA) also estimates that the growth in global crude oil supply will suffer in 2022.

  • Sebi penalises NSE, BSE for laxity in Karvy Stock Broking case

    India’s markets regulator on Tuesday fined BSE Rs 3 crore and the National Stock Exchange (NSE) Rs 2 crore for “laxity” in detecting misconduct by Karvy Stock Broking (KSBL).

    The Hyderabad-based brokerage misused securities worth Rs 2,300 crore belonging to more than 95,000 clients by pledging them without authorisation, said the Securities and Exchange Board of India (Sebi). The firm and its group entities used funds the to raise Rs 851 crore from eight banks.

    “Without doubt, it was KSBL which misused clients (sic) securities by unauthorisedly pledging them and was thus responsible for loss caused by pledging securities which it did not own, including loss to investors as well as loss to banks and NBFCs who loaned funds to KSBL against securities which did not belong to KSBL,” said Sebi.

    Noticee (BSE & NSE), which resulted in delayed detection of the misconduct by KSBL and the Noticee needs to be held accountable for the same,” Sebi said in two separate orders against the country’s leading stock exchanges.”

    Sebi had examined details of inspection and action taken by NSE and BSE against KSBL conducted between 2016 and 2019. It further asked the exchanges to furnish the procedure they followed to ensure reconcillation of clients’ securities.

    Sebi’s investigation found lapses on the part of both exchanges.

    In 2019, Sebi had passed an ex-parte ad-interim order against KSBL when the unauthorisedly pledging issue came to light. Efforts taken by Sebi, depositories and exchanges helped KSBL’s clients recover their dues.

    In December 2019, depository firm NSDL had said securities were returned to 82,559 clients from the KSBL Demat account. In November 2020, NSE had said funds and securities worth Rs 2,300 crore belonging to about 235,000 investors of KSBL were settled.

    After the KSBL investigation, Sebi changed norms around pledging of shares to prevent misuse by brokerage. The regulator did away with the concept of power of attorney which earlier allowed brokerages gain access to client securities.

  • Rupee gains 14 paise to 75.79 against US dollar in early trade

    Rupee gains 14 paise

    The rupee appreciated 14 paise to 75.79 against the US dollar in opening trade on Monday, amid a pullback in crude oil prices.

    At the interbank foreign exchange, the rupee opened at 75.94 against the American dollar, then gained further ground to quote 75.79, registering a rise of 14 paise from the last close.

    On Friday, the rupee appreciated 10 paise to settle at 75.93 against the US dollar.

    The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 99.92.

    Most Asian and emerging market peers are trading weaker against the US dollar this Monday morning and could weigh on sentiments, however subdued crude oil prices will cap depreciation bias, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

    However, the big trigger for the markets will be Indian and US CPI inflation data on Tuesday, Iyer said.

    On the domestic equity market front, the 30-share Sensex was trading 322.35 points or 0.54 per cent lower at 59,124.83, while the broader NSE Nifty declined 73.70 points or 0.41 per cent to 17,710.65.

    Global oil benchmark Brent crude futures fell 2.33 per cent to USD 100.39 per barrel.

    Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 575.04 crore, as per stock exchange data.

  • Veranda lists 15% higher over issue price on BSE; down 5% on NSE

    Shares of Veranda Learning Solutions opened 15 per cent higher at Rs 157 against its issue price of Rs 137 per share on the BSE on Monday. At 10:22 am; the stock locked in upper circuit of Rs 164.85, after hitting a low of Rs 149.15 in intra-day trade so far. According to the exchange data, around 775,000 equity shares changed hands with pending buy orders of 5,151 shares on the BSE.

    However, the stock locked in lower circuit of Rs 131.25 on the National Stock Exchange (NSE). It opened 9 per cent lower at Rs 125 against its issue price of Rs 137 per share. Around 3.03 million shares changed hands with pending sell orders 2.8 million shares so far.

    The company has raised Rs 200 crore through initial public offering (IPO). It has proposed to utilize the net proceeds of the fresh issue towards repayment of its borrowings amounting to Rs 60 crore, payment of acquisition consideration of Edureka or repayment of bridge loan availed to discharge acquisition at Rs 25.19 crore, growth initiatives towards Rs 50 crore and the balance for general corporate purposes.

    Veranda Learning Solutions offers diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, graduates, professionals and corporate employees through multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.

    The company provides comprehensive long-term and short-term preparatory courses in simple and lucid manner for students preparing for Union Public Service Commission, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railways and Chartered Accountancy. The company also provides customised short term skilling courses, long term courses and other corporate courses to its learners.

  • SBI Cards dips 5% as over 3% of equity changes hands via block deals on NSE

    Shares of SBI Cards and Payment Services dipped 5 per cent to Rs 836 on the National Stock Exchange (NSE) in Tuesday’s intra-day trade after over 3 per cent equity of the company changed hands at the counter via block deals.

    Till 09:21 am; around 31.9 million equity shares representing 3.37 per cent equity of SBI Cards changed hands on the NSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

    As per reports, private equity firm Carlyle Group was to sell its entire stake in the company for as much as Rs 2,558 crore via block trade. CA Rover Holdings, a Carlyle entity, as of December 2021 quarter, held 29.20 million shares or 3.09 percent stake in SBI Cards. The shares were to be offered at Rs 851.50-876.75 a piece, representing around 3 percent discount to Monday’s closing price.

    Earlier on September 21, 2021, CA Rover Holdings sold 32 million equity shares or 3.4 per cent stake of SBI Cards at an average price of Rs 1,021 per share on the NSE, data shows.

    Meanwhile, SBI Cards has underperformed the market by falling 23 per cent in the past six months, as compared to a 1.5 per cent rise othe Nifty50 index. However, in the last one month, the stock has outperformed by gaining 14 per cent as against a 12 per cent surge in the benchmark index. The stock hit a 52-week low of Rs 712.25 on March 7, 2022.

    At 09:35 am; SBI Cards traded 3 per cent lower at Rs 847.85, as compared to a 0.2 per cent decline on the Nifty50 index.