Market Live: Sensex off day’s low, Nifty above 15,800; Bank, FMCG stocks slip

Copper dips as economic slowdown fears sap sentiment

Copper prices slipped on Wednesday, as downbeat U.S. consumer confidence data and prospects of rapid rate hikes to control a surge in inflation fanned fears of a global economic slowdown, impacting metals demand. Three-month copper on the London Metal Exchange was down 0.6% at $8,314 a tonne, as of 0702 GMT. Prices of the metal, which is used as a gauge of economic health by investors, has fallen 23% since scaling a peak of $10,845 in March. The most-traded August copper contract in Shanghai ended daytime trading down 0.9% to 63,470 yuan ($9,466.07) a tonne. LME aluminium fell 0.7% to $2,474 a tonne, zinc gained 0.2% to $3,340, lead dipped 0.7% to $1,956.50, nickel shed 1.6% to $22,800, and tin dropped 7.1% to $24,900.

Stocks fall, bonds rise amid worries about growth

Stocks dropped Wednesday on renewed worries about economic growth as monetary policy tightens in much of the world to fight inflation.

European equities fell for the first time in four days with sentiment also hurt by China remaining committed to its zero-Covid approach. US contracts steadied after a tech-led slide hurt the S&P 500 Tuesday. An Asian equity index snapped a four-day climb, losing more than 1%.

Route Mobile announces share buyback: Price, size, key details to know

Enterprise communications service provider Route Mobile’s board has approved the buyback by the company of its fully paid-up equity shares at a price not exceeding ₹1,700 per equity share (Maximum Buyback Price) and for an aggregate amount not exceeding ₹120 crore (maximum buyback size), from the shareholders of the company, excluding promoters, promoter group and persons who are in control of the company.

Structural demand drivers for commodities remain intact: Sajjan Jindal

Although global growth expectations have moderated recently, the structural demand drivers for commodities like steel remain intact, said Sajjan Jindal, chairman and managing director of JSW Steel Ltd in a message to shareholders in the company’s annual report.

BSE bank stocks under pressure, slip close to 1%

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Prabhudas Lilladher on Indraprastha Gas

We tweak our FY23/24E earnings lower by ~1%. IGL reported strong results with EBIDTA/PAT of Rs5.0bn (6%Q/Q; PLe Rs3.9bn) and Rs3.6bn (16%Q/Q; PLe Rs2.7bn), due to higher margins given lower spot purchase. Volumes were lower QoQ partly due to pandemic restrictions in January and were at 7.7mscmd (-1%Q/Q). For FY22, EBIDTA/PAT was at Rs18.8bn (+11% 2yr CAGR) and Rs13.1bn (2yr CAGR 7.7%). We believe pick-up in economic activity will drive growth in coming quarters. IGL remains an enviable business model with high volume growth due to geographical expansion and addition of new buses and taxis. Also, fuel economics, shift to private vehicle ownership post pandemic will drive CNG volumes despite excise duty cuts, in our view. Reiterate “BUY” with DCF-based PT of Rs589 (Rs662) as we raise the WACC to 10.3% from 9.7%.

Ravindra Rao of Kotak Securities on crude oil

“NYMEX crude trades marginally lower near $111/bbl after recovering nearly 10% from recent lows. Crude oil rose in last few days on supply concerns as G7 members worked on ways to cap Russian crude prices, Libya and Ecuador faced supply disruptions due to political issues and as some major producers like UAE indicated that they were producing near capacity. The momentum is crude oil however came to a halt as disappointing US economic data rekindled demand concerns and as market players positioned for weekly inventory report. Crude may remain choppy ahead of inventory report however lack of any positive surprise may result in some profit taking.”

Ravindra Rao of Kotak Securities on gold

“COMEX gold trades in a range near $1820/oz as support from disappointing US economic data, ban on Russian gold imports by some G7 countries, sharp rebound in crude oil price and improving outlook for Chinese economy is countered by rebound in US dollar index, attempts at recovery by equity markets, continuing ETF outflows and monetary tightening stance of major central banks. Gold remains stuck in the $1800-1850/oz and this may continue amid lack of fresh triggers however with Fed’s emphasis on aggressive tightening, the US dollar may remain supported keeping pressure on gold prices..”

ICICI Securities on Mahindra & Mahindra

We downgrade MM to HOLD with revised DCF-based target price of Rs1,150 (earlier: Rs1,065), implying 15x FY24E core earnings and discounted value of stake in various listed entities. Under present business visibility, we see limited scope for further earnings upgrades, resulting in limited upside on present valuation levels, post MM having given ~60% return in past three months.

IRCTC shares take a pause after rising on three successive sessions

IRCTC share price: Shares of Indian Railway Catering and Tourism Corporation rally took a pause today after surging on last three successive sessions. IRCTC share price today opened downside and went to hit intraday low of ₹609.30 per share mark on NSE in early morning deals, logging around 1.50 per cent dip from its Tuesday close of ₹620 per share levels.

Asian stocks lose gains made on shorter China quarantine as recession fears persist

Asian stock markets fell on Wednesday, extending Wall Street’s overnight losses amid concerns over inflation and the possibility of recession, which also boosted the safe-haven dollar.

Japan’s Nikkei index fell 0.98%, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.37%, dragged lower by Australian shares, off 0.81%, and Korea’s KOSPI, down 1.54%.

Asian shares had ended the Tuesday session on an upward trajectory after China announced an easing of its quarantine requirements for inbound passengers, in what some observers saw as the biggest relaxation so far of its “zero COVID” strategy.

But the positive impact had petered out on Wednesday.

“Inevitably, markets tend to overreact to these sorts of news,” said Carlos Casanova, senior economist at UBP in Hong Kong. “In order for that to be sustainable, we really want to see these measures materialise into actual reopening.”

Chinese blue chips, which hit a four month high the day before, lost 1.16% while the Hong Kong benchmark fell 1.83%. 

EUROSTOXX 50 futures were down 0.57% and FTSE futures lost 0.68% before European markets opened.

The losses in Asia followed a turbulent day on US markets, with the S&P 500 index down more than 2% after data showed US consumer confidence dropped to a 16-month low in June due to fears high inflation could cause the economy to slow significantly in the second half of the year.

India’s Mukesh Ambani hands reins of telco unit Jio to son

Indian billionaire Mukesh Ambani stepped down on Tuesday from the role of director of the telecoms arm of Reliance Industries in favour of his son Akash, setting the stage for a leadership transition at his energy-to-retail conglomerate.

The change was disclosed in a regulatory filing by Reliance Jio Infocomm Ltd, which said Mukesh’s 30-year-old son and non-executive director Akash was being appointed chairman of the board.

The move comes after Ambani, who ranks among the world’s top 10 billionaires, first signaled last year that his children would have significant roles in the family’s business empire.

Reliance is “in the process of effecting a momentous leadership transition,” he said at an event in December.

Akash’s twin sister Isha is a director on the boards of Jio as well as Reliance Retail, which houses the conglomerate’s ambitious bets in India’s brick-and-mortar space.

The youngest of the siblings, Anant, sits on the board of renewable energy and oil and chemical units of Reliance as a director.

Demand trends remain favourable: ICICI Securities on Century Plyboards India 

We re-iterate BUY on Century Plyboards (CPBI) as demand continues to remain healthy for wood panel products. Our recent interaction with dealers and the management of Century Plyboards (CPBI)…