Business News Highlights: Sensex, Nifty End Flat Amid Volatility
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The two key equity benchmarks, Sensex and Nifty, on Monday closed flat amid volatility as the indices entered the week of the monthly F&O expiry. The S&P BSE Sensex oscillated 462 points during intraday and ended 15 points higher at 66,024. On the other hand, the Nifty50, settled unchanged at 19,676. On the 30-share Sensex platform, Bajaj twins, Kotak Bank, Asian Paints, UltraCemco, ICICI Bank were among the gainers. On the downside, Infosys, M&M, Wipro, TCS, SBI, Sun Pharma emerged losers.
On Tuesday, Asian markets exhibited weakness due to renewed concerns about China’s property sector. Meanwhile, the US markets ended trading with gains and the US bond market continued it’s sell-off for the fourth straight week, as reported by the Hindu Businessline. In addition to the dollar reaching it’s peak strength of the year, the Japanese yen is nearing 150 per dollar, but there seems to be no indication of any intervention from the authorities yet. This might leave an impact on investors' confidence and sentiment. Global oil benchmark Brent crude climbed 0.39 per cent to $93.63 a barrel on Monday. Foreign institutional investors (FII) sold shares worth Rs 2,333.03 crore, while domestic institutional investors (DII) bought Rs 1,579.28 crore worth of stocks on September 25, provisional data from the National Stock Exchange (NSE) showed. FIIs pulled out over Rs 10,000 crore from Indian equities in the first three weeks of September.
Meanwhile, the rupee declined by 20 paise to settle at 83.14 (provisional) against the US dollar on Monday due to rising crude oil prices and a strong American currency against major rivals overseas. Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said. At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback. It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close. On Friday, the rupee climbed 19 paise to close at 82.94 against the US dollar.
Here are some important factors that can impact the market on September 26.
Economy Indicators
Globally, markets will keenly observe the final economic growth data from US for the second quarter of the calendar year set to be released on September 28, followed by a speech from Fed Chair Jerome Powell on September 29. The US is scheduled to reveal new home sales and final building permit statistics for August on September 26, in addition to real consumer spending and PCE prices for the second quarter of the calendar year 2023 scheduled to be released on September 28.
Additionally, the UK will release it’s GDP numbers for the June quarter of 2023 and it’s current account data on September 29. The European Central Bank will hold a non-monetary policy meeting on September 27 and it’s general council meeting on September 28. The EU is scheduled to announce it’s consumer confidence final and industrial sentiment for September towards the end of the week. Japan is expected to come out with it’s retail sales, housing starts, and construction orders for August on September 29.
Domestically, fiscal deficit and infrastructure output numbers for August are expected to be released by the end of the week, in addition to foreign exchange reserves for the week ended September 22, as per a report by Moneycontrol.
Upcoming IPOs
The markets this week will witness three mainboard offers and nearly 13 SME issues, lined up for subscription. JSW Infrastructure, Updater Services opened for bidding on Monday. Valiant Laboratories will launch it’s IPO from September 27 to October 3. The issue consists of fresh equity worth Rs 1.08 crore and is priced in the range of Rs 133-140. Additionally, 13 SME IPOs including Vishnusurya Projects, Arabian Petroleum, Newjaisa Tech, and Inspire Films will open for subscription in the week.
Rupee Falls 14 Paise To Settle At 83.27 Against US Dollar
The rupee stayed on the downward track for the second straight day to settle 14 paise lower at 83.27 (provisional) against the US dollar on Tuesday due to a firm greenback against major currencies overseas and persistent foreign capital outflows.
Stock Market Ends Flat: Sensex Dips 78 Points, Nifty Around 19,665
The two key equity benchmarks, Sensex and Nifty, on Tuesday again closed flat amid volatility in a directionless market. The BSE Sensex closed at 65,945, down 78 points. On the other hand, the NSE Nifty shut shop at 19,665, down 10 points. On the 30-share Sensex platform, TechM, IndusInd Bank, Infosys, Asian Paints, ICICI Bank, and Kotak Bank were among the losers. On the upside, Nestle, Tata Steel, M&M, Bajaj Finance, HDFC Bank, and NTPC emerged gainers. Shares of Eicher Motors, the listed parent company of Royal Enfield, and TVS Motor Company were in focus and rallied up to 4 per cent on the BSE in Tuesday's intra-day trade after overseas brokerage firm Jefferies said it preferred these two stocks over Bajaj Auto and Hero MotoCorp in two-wheelers (2W) segment.
Government-Owned WAPCOS Withdraws IPO Plans
Public sector company WAPCOS Ltd has shelved it’s plan for an initial public offering (IPO), intended to divest shares. The issue was scheduled to be a complete offer-for-sale (OFS) of around 32,500,000 equity shares by the promoter, the Government of India. The company filed it’s preliminary papers for the issue on September 26 last year with the Securities and Exchange Board of India, but it withdrew the issue last week on September 21, 2023, an update with SEBI revealed. The company didn’t provide any reasons for the withdrawal. The company comes under the ministry of Jal Shakti and provides consultancy, engineering, procurement, and construction services in the water, power, and infrastructure sectors.
Fincare Small Finance Bank, Western Carriers Recieve SEBI Approval For IPOs
Fincare Small Finance Bank Ltd and logistics company Western Carriers (India) Ltd have received approval from the markets regulator Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offerings (IPOs). The two firms, which filed preliminary IPO papers with the SEBI between May and June, obtained the regulator's observation letters during September 15-22, an update with the watchdog showed on Tuesday. In SEBI's parlance, obtaining its observation letter means its clearance to float the public issue.
Income Tax Department Issues ‘Angel Tax’ Rules For Valuing Investments In Start-ups
The income tax department issued norms regarding the valuation of equity and compulsorily convertible preferable shares issued by start-ups to resident and non-resident investors. The revised norms are effective from September 25, the government said. According to the changes in Rule 11UA of the I-T rules, the Central Board of Direct Taxes (CBDT) stated that the valuation of compulsorily convertible preference shares (CCPS) can also be decided on the fair market value of unquoted equity shares. The revised norms also retain the five new valuation methods suggested in the draft rules for consideration received from the non-resident investors, reported PTI. Notably, till recently, only investments made by domestic investors or residents in unlisted companies were taxed at a higher rate than the fair market value. This was termed an angel tax. However, the Finance Act, of 2023, noted that these investments above the fair market value would be taxed, whether they are made by domestic or resident investors or non-resident investors.
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