Tech Enhanced Investing

Indian stock markets opened weak on Thursday amid mixed global cues, as escalating tensions between Ukraine and Russia kept traders cautious. The Sensex and Nifty extended their early losses, plunging nearly 1% each, driven by selling pressure in Utilities, PSU, and Power stocks. In contrast, IT and TECK sectors managed to register modest gains.

Foreign investor outflows continued to weigh on markets, with FIIs selling equities worth ₹3,411 crore on November 19. Concerns also arose from a domestic rating agency, ICRA, predicting a slowdown in India's GDP growth to 6.5% in the September quarter due to heavy rains and weaker corporate performance. Economic Affairs Secretary Ajay Seth acknowledged the slowdown but maintained that overall growth remains on track to meet the projected 6.5-7% for the fiscal year.

Market Performance

• BSE Sensex: Trading at 76,941.34, down by 637.04 points (-0.82%).
• Broader Indices: BSE Mid Cap fell 0.90%, and Small Cap dropped 0.99%.
• Top Gainers: Infosys (+0.91%), HCL Tech (+0.73%), TCS (+0.63%).
• Top Losers: Adani Ports (-10.00%), SBI (-4.68%), NTPC (-3.06%).

Sectorally, Utilities (-4.55%) and PSU (-2.80%) were the worst performers, while IT (+0.49%) and TECK (+0.39%) were the only gainers.

Global Market Update

Asian markets traded mixed as the People's Bank of China kept rates unchanged, and traders assessed potential US Fed interest rate actions. Back home, Adani Group stocks came under intense pressure after US prosecutors accused Gautam Adani of fraud and bribery in renewable energy contracts, causing a sharp drop in the group's dollar bonds.

Key Economic Highlights

• India's economy grew by 6.7% year-over-year in Q1 FY25, marking the slowest growth in five quarters.
• Despite concerns over inflation and food prices, overall economic risks remain limited, per Economic Affairs Secretary Ajay Seth.

Nifty Performance

• CNX Nifty: Trading at 23,321.60, down by 196.90 points (-0.84%).
• Top Gainers: Infosys (+1.19%), HCL Tech (+0.90%), TCS (+0.76%).
• Top Losers: Adani Enterprises (-10.00%), Adani Ports (-10.00%), SBI (-4.71%).

Asian indices showed a mixed trend, with Nikkei 225 declining by 0.9% and KOSPI rising by 0.51%.

Indian markets closed with modest gains on Tuesday, though a sharp sell-off in the final hour trimmed intra-day highs, driven by heightened geopolitical tensions. Trading remained shut on Wednesday, November 20, for Maharashtra state elections. On Thursday, markets are expected to open cautiously, tracking mixed global cues. Investor focus will remain on the ongoing Russia-Ukraine conflict, with foreign fund outflows adding to concerns as FIIs offloaded ₹3,411 crore worth of equities on November 19.

Domestically, worries persist as ICRA predicts a slowdown in India’s real GDP growth to 6.5% for Q2 FY24, citing excessive rains and subdued corporate results. Economic Affairs Secretary Ajay Seth acknowledged potential Q2 softness but maintained that full-year growth should remain between 6.5-7%.

Some optimism comes from the GTRI report forecasting a shift in India’s export patterns, with services exports expected to exceed merchandise exports by 2030, reaching $618 billion. Meanwhile, the Reserve Bank highlighted a bullish medium-term outlook, citing revived private consumption due to festive spending.

Sectoral focus includes solar stocks as the International Solar Alliance projects a 40-60% drop in solar energy costs by 2050, and metal stocks following Acuite Ratings’ prediction of a 20-million-tonne increase in India’s steel capacity by FY27. The insurance sector could also see activity, with its AUM projected to grow from $0.7 trillion in 2023 to $11 trillion by 2047. Additionally, paper industry stocks may react to reports of rising imports, particularly from China.

Globally, US markets closed mostly positive on Wednesday amid concerns over Russia-Ukraine tensions and weak corporate results. Asian markets traded mixed on Thursday following Nvidia’s strong earnings.

On Tuesday, Indian equity benchmarks ended positively, led by Realty and Auto stocks. Markets had initially surged after the NSSO reported a decline in urban unemployment to 6.4% in Q2 FY24 from 6.6% in the previous quarter. Support also came from CRISIL’s report highlighting India’s resilience in services trade and robust remittances amid global challenges. Afternoon gains were bolstered by revised capital restructuring norms for CPSEs and optimism over government initiatives like Make in India. However, geopolitical tensions and profit-booking erased some gains in the final hour.

The Sensex closed up 239.37 points at 77,578.38, while the Nifty rose 64.70 points to end at 23,518.50.

LTIMindtree shares surged to ₹5885.40, gaining 48.20 points or 0.83% from the previous close of ₹5837.20 on the BSE. The stock opened at ₹5820.05, hitting an intraday high of ₹5960.60 and a low of ₹5820.05, with 3,451 shares traded so far.

The company's stock, categorized under BSE Group 'A' with a face value of ₹1, reached a 52-week high of ₹6575.00 on September 19, 2024, and a low of ₹4518.35 on June 4, 2024. Over the past week, the scrip fluctuated between ₹6014.25 and ₹5714.00. LTIMindtree's market capitalization currently stands at ₹1,74,535.26 crore. Promoters hold a 68.60% stake, while institutional and non-institutional investors hold 22.28% and 9.12%, respectively.

The rise in share price follows the company's announcement of a strengthened strategic partnership with Nexi Group, a leading European PayTech company. This collaboration aims to enhance Nexi’s technological capabilities across its core platforms for acquiring, issuing, and e-commerce, reinforcing its position in digital payments.

As part of the partnership, LTIMindtree will utilize its advanced technical solutions to optimize Nexi's platforms for improved efficiency, innovation, and scalability. The company will also oversee Nexi's hybrid infrastructure, ensuring seamless integration between on-premise and cloud systems to support its digital transformation.

A dedicated team of over 800 experts from LTIMindtree will work from nine global delivery centers, offering 24/7 support to advance Nexi's technological goals. These centers will enhance operational efficiency while catering to regional market needs.

LTIMindtree, formerly Larsen & Toubro Infotech, specializes in technology consulting and digital solutions, helping businesses innovate, grow, and transform using cutting-edge digital technologies.

Wipro's share price climbed to ₹566.70 on the BSE, gaining 0.90% or ₹5.05 from its previous close of ₹561.65. The stock opened at ₹560.05 and reached a high of ₹566.70, with a low of ₹560.00 during the trading session. A total of 20,657 shares changed hands.

This 'A' group stock, with a face value of ₹2, recorded a 52-week high of ₹583.00 on November 11, 2024, and a 52-week low of ₹393.20 on November 28, 2023. Over the past week, the scrip’s high and low stood at ₹574.50 and ₹540.25, respectively. Wipro’s market capitalization currently stands at ₹2,93,841.49 crore. Promoters hold 72.80% of the company’s shares, while institutions and non-institutional investors hold 15.98% and 8.89%, respectively.

The stock’s rise aligns with Wipro’s collaboration with Lineaje, a US-based software supply chain security firm. Through its investment arm, Wipro Ventures, the company has invested in Lineaje to enhance security in enterprise software applications. The partnership will utilize Lineaje's Open-Source Manager and SBOM360 Hub to help businesses identify and address vulnerabilities in their software’s open-source components.

This advanced solution enables a deep analysis of software components, uncovering hidden dependencies and assessing potential risks. The service not only verifies the authenticity of the software supply chain but also proactively eliminates vulnerabilities at their source and mitigates potential risks.

The partnership reflects Wipro's commitment to innovation and security, providing enterprises with robust tools for managing software supply chain risks. With Lineaje, Wipro aims to revolutionize risk management and vulnerability mitigation for its enterprise clients.

Sundaram Finance shares climbed 1.19%, trading at ₹4142.55, gaining ₹48.90 over the previous close of ₹4093.65 on the BSE. The stock opened at ₹4124.95, reaching a high of ₹4189.00 and a low of ₹4034.20 during the session, with 401 shares exchanged.

The BSE group 'B' stock, with a face value of ₹10, has recorded a 52-week high of ₹5528.85 (September 27, 2024) and a low of ₹3104.45 (November 24, 2023). Over the past week, its range has been ₹4350.00 to ₹4034.20. The company currently holds a market capitalization of ₹45,482.03 crore, with promoters owning 37.23%, and Institutions and Non-Institutions holding 26.44% and 36.33%, respectively.

Sundaram Finance's subsidiary, Sundaram Home Finance, plans to expand its footprint in tier-III towns of western Tamil Nadu under its 'Emerging Business' (EB) vertical. With over 15 branches in the region, including six under this segment, the company aims to disburse ₹500 crore within 12-18 months, with ₹50 crore allocated to the EB vertical.

Apart from housing finance, Sundaram Finance has diversified operations in Mutual Funds, General Insurance, IT services, BPO, and retail distribution of financial products.

Indian stock indices remained slightly positive during morning trading, buoyed by gains in heavyweights like Kotak Mahindra Bank, JSW Steel, and HDFC Bank. The market received a boost from comments by Oil Minister Hardeep Singh Puri, who suggested that Donald Trump’s potential return to the White House could increase global energy supplies and lower prices, benefiting India.  

The Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra highlighted India's strides in digitalization, noting that the digital economy currently accounts for 10% of the GDP and could grow to 20% by 2026. He emphasized India’s leadership in financial technology and its significant adoption of digital services by banks.  

Market Highlights:  
- Sensex: Trading at 77,781.38, up 90.43 points (0.12%), with 16 stocks advancing and 14 declining.  
- Nifty: Trading at 23,573.20, up 14.15 points (0.06%), with an even split of 25 advancing and 25 declining stocks.  

Sectoral Performance:  
- Top Gainers: Realty (+1.56%), Consumer Discretionary (+1.27%), Auto (+1.11%), Power (+1.02%).  
- Top Losers: FMCG (-0.59%), TECK (-0.13%), IT (-0.08%).  

Top Performers:  
- Sensex Gainers: Kotak Mahindra Bank (+1.29%), JSW Steel (+1.00%), HDFC Bank (+0.87%).  
- Nifty Gainers: Eicher Motors (+7.68%), Hero MotoCorp (+1.56%), Kotak Mahindra Bank (+1.08%).  

Global Market Trends:  
Asian markets mostly traded lower amid concerns over U.S. policy impacts on inflation and interest rates:  
- Shanghai Composite (-0.32%)  
- Hang Seng (-0.88%)  
- Jakarta Composite (-0.63%)  

However, Nikkei 225 edged up (+0.01%), and KOSPI gained (+0.35%).  

India’s evolving digital infrastructure and fintech innovations continue to create growth opportunities, as highlighted by the RBI. The outlook remains optimistic for long-term digital economic expansion.

Indian stock indices, Sensex and Nifty, remained lower in early afternoon trading amid a surge in wholesale inflation and weak trends from other Asian markets. India's Wholesale Price Index (WPI) inflation rose to 2.36% in October 2024, up from 1.84% in September, driven by higher costs in food items, crude oil, natural gas, and electricity. Concerns were further fueled by a WTO report indicating an increase in trade restrictions among G20 countries between October 2023 and October 2024, with 91 new trade-restrictive and 141 trade-facilitating measures implemented, mainly on imports.

Globally, Asian markets traded predominantly in red, echoing Wall Street’s mixed performance. In India, shares of companies in mining and minerals drew attention as CareEdge advised securing long-term mineral supplies and recycling due to India's limited domestic reserves of lithium, cobalt, nickel, and other essential minerals. This, according to the report, could reduce import-related risks and provide environmental benefits.

Currently, the BSE Sensex trades at 77,508.01, down by 182.94 points or 0.24%, with 6 stocks advancing and 24 declining. Broader indices were positive; the BSE Midcap index rose 0.60%, while the Smallcap index climbed 1.09%. Leading sectoral gains were seen in Realty, Consumer Discretionary, Auto, and Metal, while FMCG, PSU, Oil & Gas, and Consumer Durables indices witnessed declines.

Top Sensex gainers included HDFC Bank, Reliance Industries, and Kotak Mahindra Bank, while Hindustan Unilever, ITC, and Adani Ports & SEZ were among the top losers. On the Nifty, Eicher Motors, Hero MotoCorp, and HDFC Life Insurance led the gains, while BPCL, Hindustan Unilever, and Tata Consumer Products were the major laggards.

Meanwhile, CareEdge’s report highlighted India’s growing need for advanced batteries, particularly lithium-ion (Li-ion) batteries, to support the country's renewable energy and electric vehicle targets by 2030. Demand for Li-ion batteries is projected to reach 54 GWh by FY27 and 127 GWh by FY30, primarily driven by electric vehicles and energy storage needs. Consequently, import dependency for Li-ion batteries is expected to reduce to around 20% by FY27 as domestic production scales up.

Across Asia, markets saw mixed results: Hong Kong’s Hang Seng fell 427.93 points, Jakarta Composite dropped 43.94 points, Shanghai Composite was down 62.7 points, while Japan's Nikkei slipped by 185.96 points. In contrast, Straits Times and KOSPI managed slight gains.

Local stock indices traded in red during the late afternoon session, impacted by concerns over India’s widening trade deficit and rising inflation. The trade deficit swelled to $27.14 billion in October from $20.8 billion in September, as import growth outpaced exports. Additionally, October's wholesale price index (WPI) inflation rose to 2.36%, up from September's 1.84%, driven by higher prices in food items, crude oil, natural gas, and electricity.

Global markets showed mixed trends: Asian stocks mostly traded lower as Federal Reserve officials highlighted inflation risks, while European stocks traded mostly positive in anticipation of upcoming Eurozone growth data. However, bond yields spiked amid inflationary concerns tied to Trump’s policies.

The BSE Sensex was down 78.79 points or 0.10% at 77,612.16, fluctuating between 77,424.81 and 78,055.52, with 24 stocks declining and 6 advancing. Broader market indices traded in green, with the BSE Mid Cap index up 0.39% and the Small Cap index rising by 0.83%.

Leading gainers in the BSE sectoral indices included Realty up by 0.94%, Consumer Discretionary by 0.69%, Auto by 0.48%, Telecom by 0.47%, and Healthcare by 0.31%. Conversely, FMCG dropped by 1.17%, Utilities by 0.67%, PSU by 0.66%, Oil & Gas by 0.39%, and Power by 0.27%.

On the Sensex, top performers were Reliance Industries (up 1.53%), Kotak Mahindra Bank (up 1.17%), HDFC Bank (up 1.00%), Tech Mahindra (up 0.74%), and Asian Paints (up 0.44%). Major decliners included Hindustan Unilever (down 2.51%), Power Grid (down 2.01%), NTPC (down 2.01%), Adani Ports (down 1.72%), and Nestle (down 1.54%).

The Nifty 50 also traded lower, slipping 25.30 points or 0.11% to 23,533.75, with 17 stocks advancing and 33 declining. Top gainers on Nifty were Eicher Motors, up 5.68%, and Hero MotoCorp, up 1.85%.

In Asia, markets were largely in red as Hang Seng fell 1.99%, Nikkei 225 dropped 0.48%, and Shanghai Composite lost 1.76%. European indices mostly gained, with France’s CAC rising by 0.24% and Germany’s DAX by 0.65%, while the UK’s FTSE 100 slipped slightly by 0.02%.

WPI inflation saw a jump in October as food prices and crude oil pushed the primary articles index up by 2.35% from the previous month. However, the Fuel & Power index saw a slight decline, while manufactured products, a significant part of WPI, rose by 0.49%.

Indian stock markets witnessed a sharp decline on Wednesday as retail inflation hit a 14-month high of 6.21% in October, surpassing the Reserve Bank of India's tolerance level, primarily due to soaring food prices. Today, markets are expected to start cautiously, influenced by mixed signals from Asian peers. Investor sentiment may remain cautious as data from exchanges indicated that Foreign Institutional Investors (FIIs) sold equities worth Rs 2,502.58 crore on Wednesday.

On a policy front, Chief Economic Advisor V. Anantha Nageswaran highlighted the importance of strengthening India's economic appeal through internal reforms and supporting small and medium enterprises (SMEs). He emphasized India’s need to remain resilient to global changes, particularly those in the U.S., by focusing on deregulation and sustainable growth strategies. Meanwhile, there’s some optimism with S&P Global Ratings’ view that India’s expanding supply capacity could help ease inflationary pressures, a situation seen as manageable by the Reserve Bank of India.

Additionally, tax data highlights a reduction in the tax burden on middle-income individuals (earning below Rs 20 lakh annually), while high-income earners (above Rs 50 lakh) have seen a considerable increase in tax contributions over the last decade. The mineral sector could see some positive movement following a memorandum of understanding between the Ministry of Mines and the International Energy Agency (IEA) for cooperation on critical minerals, ensuring India access to key data and strategic insights.

Elsewhere, Asian markets opened mixed as U.S. CPI data for October aligned with expectations, fostering speculation about a potential rate cut by the Federal Reserve in December. U.S. markets closed mainly positive on Wednesday, supported by these inflation readings.

In India, the equity benchmarks extended their losses on Wednesday, with FIIs selling off Rs 3,024.31 crore worth of shares. Inflationary concerns, weak quarterly earnings, and broad-based selling, particularly in stocks like Tata Steel and Mahindra & Mahindra, weighed on the markets. Traders largely ignored positive reports on India’s merchandise export growth and robust performance by public sector banks in H1FY25.

At closing, the BSE Sensex declined by 984.23 points, settling at 77,690.95, while the CNX Nifty dropped by 324.40 points, ending at 23,559.05.

Indian Hotels Company’s share price surged to Rs. 741.75, marking a 3.96% gain or a 28.25-point rise from its prior closing rate of Rs. 713.50 on the BSE.

The stock opened at Rs. 710.45 and has ranged from a low of Rs. 709.80 to a high of Rs. 742.75 in today's session, with 233,345 shares exchanged so far. The BSE group 'A' stock, with a face value of Rs. 1, recently hit a 52-week high of Rs. 748.20 on November 11, 2024, and a 52-week low of Rs. 408.90 on November 16, 2023. Over the past week, it’s traded between Rs. 748.20 and Rs. 694.00, bringing the company’s market capitalization to Rs. 1,05,362.45 crore.

Promoters currently hold a 38.12% stake in the company, with institutional and non-institutional investors holding 46.23% and 15.64%, respectively.

Indian Hotels Company (IHCL) has expanded its footprint by signing a new 45-room Ginger hotel on Jallandhar beach in Diu, part of the Union Territory of Daman and Diu. The property, set on three acres along the coastline, will offer scenic ocean views along with amenities like a fully-equipped gym, a conference hall, and a swimming pool.

Known under the brand Taj Hotels Resorts and Palaces, IHCL and its subsidiaries represent one of Asia’s largest hospitality chains, with operations across luxury, premium, midmarket, and budget hotel segments.