Market Update
Movers: Apollo Tyres, Devyani Intnl, INOX India, Kaynes Technology, Nestle India, Sun Pharma, Vakrangee, Vedanta
Arun Goswami
19 Dec, 2023
Mumbai
Stocks in Mumbai traded down, and investors reacted to a flood of domestic corporate news.
The Sensex index decreased 168.07 points to 71,144.04, and the Nifty index fell 57.75 points to 21,360.25.
On the Mumbai stock exchange, 181 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
Nestle India decreased 0.3% to ₹24,300.0, and the company set January 5, 2024, as the record date for its 1-to-10 stock split.
Vedanta Ltd. advanced 1.6% to ₹264.45 after the company announced a second interim dividend of ₹11 per share, or ₹4,089 crore, to shareholders on record on December 27.
Sun Pharmaceutical Industries increased 0.4% to ₹1,259.40, and the company agreed to acquire a 16.7% stake in the U.S.-based clinical-stage biopharmaceutical company Lyndra Therapeutics for $30 million.
Zee Entertainment Enterprises increased 1.1% to ₹281.10, and Sony India is not likely to accept the company's request to extend its merger deadline.
Apollo Tyres rose 3.1% to ₹464.50, and a Bloomberg report suggested that an affiliate of Warburg Pincus is looking to sell a 3% stake in the company for $100 million with a floor price of ₹440 per share.
Devyani International gained 7.5% to ₹196.50 after the company acquired 274 KFC stores in Thailand for ₹1,066.10 crore and approved an investment of 340 crore in its international markets-focused subsidiary, Devyani DMCC, Dubai.
Vakrangee Limited gained 0.5% to ₹19.40 after the company agreed to acquire 8.8% of Vortex Engineering from the International Finance Corporation.
Kaynes Technology India Limited rose 4.5% to ₹2,728.20 after the company launched an institutional offering to raise ₹1,400 crore at an offer price of ₹2,444 per share.
PNC Infratech jumped 2.4% to ₹351.0 after the company won a toll road project worth 1,174 crore from the road development authority in Madhya Pradesh.
INOX India, the maker of cryogenic storage and distribution equipment, had its initial public offering subscribed 61 times on the final day of subscription.
The offer price range is between ₹627 and ₹660 per share, and the institutional portion was subscribed to 148 times and the retail investment portion was subscribed to 15 times.
Annual revenue in the fiscal year ending in March 2023 increased to ₹984.20 crore, net income advanced to ₹152.71 crore, and diluted earnings per share rose to ₹16.83.
Nifty and Sensex Indexes Turned Lower, BoJ Left Rates Unrevised
Arjun Pandit
19 Dec, 2023
Mumbai
Stocks in Mumbai traded higher, and investors reacted to domestic corporate news.
Benchmark stock indexes edged slightly higher as investors stayed optimistic about the economic growth prospects and steady flow of funds from domestic and international investors.
The Bank of Japan held its short-term rate at -0.1% and 10-year bond yields near zero percent in a unanimous vote in the final meeting of the year.
The rate decision was widely anticipated, and the policy committee also held its loose upper band of 1% set for the long-term government bond yield.
Japan is the only major advanced country with interest rates near zero, despite the central banks in the U.S. and Europe lifting rates by as much as 500 basis points over the last eighteen months.
The Japanese yen edged up 0.5% to 143.46 after the rate decision announcement.
The Nikkei index in Tokyo advanced 1%, but the Hang Seng index in Hong Kong declined 0.6% on the ongoing property market worries.
Shanghai Composite index is set to close lower for the third year in a row and the Hong Kong index is likely to extend losses to the fourth consecutive year.
Electric vehicle maker Nio jumped 4.7% after the company secured an additional investment of $2.2 billion from funds controlled by the Abu Dhabi Investment Authority, following the earlier investment of $738 million in June.
Authorities on the mainland China also grappled with an earthquake in the Gansu-Qinghai border region.
A 6.2-magnitude earthquake struck the northwestern Chinese province late last night, killing at least 110 people and injuring more than 230.
India Indexes and Yields
The Sensex index decreased 168.07 points to 71,144.04, and the Nifty index fell 57.75 points to 21,360.25.
On the Mumbai stock exchange, 181 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.16%, and the Indian rupee hovered near ₹82.10 against the U.S. dollar.
The gold price decreased by 0.2% to ₹61,965 per ten grams, and silver edged down by 0.01% to ₹74,405 per kilo.
Crude oil increased by 2.1% to ₹6,138 per barrel, and natural gas fell by 0.1% to ₹207.20 per thermal unit.
India Stock Movers
Nestle India decreased 0.3% to ₹24,300.0, and the company set January 5, 2024, as the record date for its 1-to-10 stock split.
Vedanta Ltd. advanced 1.6% to ₹264.45 after the company announced a second interim dividend of ₹11 per share, or ₹4,089 crore, to shareholders on record on December 27.
Sun Pharmaceutical Industries increased 0.4% to ₹1,259.40, and the company agreed to acquire a 16.7% stake in the U.S.-based clinical-stage biopharmaceutical company Lyndra Therapeutics for $30 million.
Zee Entertainment Enterprises increased 1.1% to ₹281.10, and Sony India is not likely to accept the company's request to extend its merger deadline.
Apollo Tyres rose 3.1% to ₹464.50, and a Bloomberg report suggested that an affiliate of Warburg Pincus is looking to sell a 3% stake in the company for $100 million with a floor price of ₹440 per share.
Devyani International gained 7.5% to ₹196.50 after the company acquired 274 KFC stores in Thailand for ₹1,066.10 crore and approved an investment of 340 crore in its international markets-focused subsidiary, Devyani DMCC, Dubai.
Vakrangee Limited gained 0.5% to ₹19.40 after the company agreed to acquire 8.8% of Vortex Engineering from the International Finance Corporation.
S&P 500 and Nasdaq Composite Extend Gains, 10-year Treasury Yield Approach 5-month Low
Barry Adams
18 Dec, 2023
New York City
U.S. market indexes advanced in Monday's trading, and Treasury yields hovered near 5-month lows.
U.S. benchmark indexes traded higher and extended their gains from the previous week, despite policymakers stressing caution against rate-cut optimism in the near future.
The S&P 500 index and the Nasdaq Composite advanced more than 0.5% despite cautious comments from policymakers across the Atlantic on rate outlooks.
Policymakers ramped up comments to push back market enthusiasm about possible rate cuts as early as March 2024 and stressed that inflation is still too high and talks of rate cuts are premature.
Federal Reserve Bank of Chicago president Austan Goolsbee said in an interview with CBS on Sunday that it is too early to declare victory over inflation and that interest rate decisions would depend on incoming data.
Investors have stepped up bidding for stocks, and the broader S&P 500 index is up 3.3% in December, and the Nasdaq is ahead by 4.1%.
Market sentiment was bolstered last week after the Federal Reserve suggested that three rate cuts totaling 75 basis points are likely in 2024.
Despite the pushback from policymakers on Friday and over the weekend, market enthusiasm for stocks pushed benchmark indexes higher.
Cooling inflation, slowing but steady economic growth, and higher-than-expected job gains are expected to contribute to consumer spending resilience and corporate earnings growth.
U.S. Indexes and Yields
The S&P 500 index gained 0.5% to 4,743.75, and the Nasdaq Composite increased 0.5% to 14,892.75.
The yield on 2-year Treasury notes increased to 4.43%, 10-year Treasury notes inched lower to 3.90%, and 30-year Treasury bonds eased to 4.01%.
Crude oil increased $1.70 to $73.13 a barrel, and natural gas prices increased 8 cents to $2.57 a thermal unit.
Gold increased $3.30 to $2,021.98 an ounce and extended gains for the third day in a row after the dollar declined following the Fed's rate decision and announcement to cut rates several times over the next two years.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.57 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.
U.S. Stock Movers
U.S. Steel Corporation surged 28.2% to $50.33 after the steelmaker accepted the $55 per share offer from Japan-based Nippon Steel in cash.
The offer values the steel company at $14.9 billion in enterprise value, and the deal is expected to close in the second or third quarter of 2024.
Southwest Airlines declined 0.4% to $28.90, and the company reached a $140 million agreement, including a $35 million fine.
The fourth-largest U.S. airline by revenue settled a federal investigation for thousands of flight cancellations and stranding 2 million passengers after heavy snowstorms in Denver and Chicago in December 2022.
The U.S. Department of Transportation said the total charges are the largest it has ever imposed on an airline for violating consumer protection laws.
Before the government's assessment, Southwest said that the reservation system meltdown cost the airline about $1.1 billion in refunds, reimbursements, lost revenue over several months, and additional costs.
SunPower Corp. plunged 35.1% to $3.99 after the company said in a regulatory filing that it is in technical violation of an agreement with a lender for $65.3 million after it failed to file its third quarter results in time.
The company is in negotiation with the lender, but if a waiver is not granted, the company may not have enough cash available for its daily operations.
European Markets Turned Lower, Policymakers Stressed Caution On Rate Cuts Expectations
European markets struggled to advance in Monday's trading, and bond yields hovered near 9-month lows in the region.
Benchmark indexes in Frankfurt, Paris, and London edged lower after cautious comments from Fed and ECB policymakers on rate outlooks.
Policymakers ramped up comments to push back market enthusiasm about possible sooner-than-expected rate cuts as early as March 2024 and stressed that inflation is still too high.
European Central Bank Governing Council member and president of Bundesbank Joachim Nagel said Friday that the central bank has probably concluded its hiking stance, but it's still too early to talk about lower borrowing costs.
Members of the European Central Bank, Philip Lane and Isabel Schnabel are expected to offer their opinions later in the day.
Deputy Governor of the Bank of England Ben Broadbent, in a speech, highlighted the difficulty of collecting reliable economic data and focused on substantial GDP growth revisions in the 1980s and the current challenges in wage growth data series.
"In particular, official estimates of average wages have been volatile and, in the spring and summer of this year, exhibited somewhat faster growth than other indicators," Broadbent noted in a speech delivered to the London Business School on Monday.
New York Fed president John C. Williams said talks of rate cuts as early as March seem premature, tempering market bets on imminent rate cuts.
Federal Reserve Bank of Chicago president Austan Goolsbee said in an interview with CBS on Sunday that it is too early to declare victory over inflation and that interest rate decisions would depend on incoming data.
Closer to the region, the Ifo Business Climate indicator for Germany unexpectedly fell to a three-month low of 86.4 in December from the downwardly revised 87.2 in November.
The business mood soured due to the current business conditions and business prospects in the upcoming months.
Europe Indexes and Yields
The DAX index decreased 0.6% to 16,650.55, the CAC-40 index eased 0.4% to 7,568.86, and the FTSE 100 index increased 0.5% to 7,614.48.
Bond yields in the eurozone hovered near nine-month lows after the European Central Bank and the Bank of England held their interest rates steady on Thursday.
The yield on 10-year German bonds decreased to 2.01%; French bonds traded lower to 2.54%; the UK gilts eased to 3.64%; and Italian bonds inched lower to 3.71%.
The euro traded higher to $1.092, the British pound inched higher to $1.268, and the U.S. dollar eased to 86.82 Swiss cents.
Brent crude increased $2.13 to $78.67 a barrel, and the Dutch TTF natural gas increased by €2.21 to €35.40 per MWh.
Europe Stock Movers
Vodafone Group plc increased 6.4% to 68.88 pence after the iliad Group proposed to merge its Italian business with Vodafone Italia.
The proposal valued Vodafone Italia at €10.45 billion, and Vodafone would obtain 50% of the share capital of NewCo, together with a €6.5 billion cash payment and a €2.0 billion shareholder loan to ensure long-term alignment.
The proposal valued Iliad Italia at €4.45 billion. Iliad would obtain 50% of the share capital of NewCo, together with a €500 million cash payment and a €2.0 billion shareholder loan.
Vodafone’s equity in NewCo at closing was valued at €1.95 billion.
Iliad said that the current proposal values the company at 7.8 times operating earnings, higher than the 7.1 times previously proposed in February 2022.
CRH plc declined 0.5% to 5,280.0 pence after the company partnered with Barro Group to acquire Australian cement manufacturing company Adbri.
The proposal values the Australian company at A$2.1 billion, a 41% premium from the previous closing price.
Barro Group and its associates currently own 42.7% of the company.
Unilever plc decreased 0.08% to 3,752.50 pence after the consumer products company said it agreed to sell its Q-Tips maker Elida Beauty for an undisclosed amount to Boston-based private equity firm Yellow Wood.
Thyssenkrupp Nucera gained 2.4% to €16.40 after the company swung in the fiscal fourth quarter to a net income of €4.3 million compared to a loss of €1.2 million in the previous year.
Software AG added 1.2% to €32.32 after IBM agreed to acquire the company's enterprise tech business for €2.13 billion in cash.
U.S. Movers: Adobe, Anheuser Busch, Illumina, Southwest Airlines, U.S. Steel
Scott Peters
18 Dec, 2023
New York City
U.S. Steel Corporation surged 28.2% to $50.33 after the steelmaker accepted the $55 per share offer from Japan-based Nippon Steel in cash.
The offer values the steel company at $14.9 billion in enterprise value, and the deal is expected to close in the second or third quarter of 2024.
Southwest Airlines declined 0.4% to $28.90, and the company reached a $140 million agreement, including a $35 million fine.
The fourth-largest U.S. airline by revenue settled a federal investigation for thousands of flight cancellations and stranding 2 million passengers after heavy snowstorms in Denver and Chicago in December 2022.
The U.S. Department of Transportation said the total charges are the largest it has ever imposed on an airline for violating consumer protection laws.
Before the government's assessment, Southwest said that the reservation system meltdown cost the airline about $1.1 billion in refunds, reimbursements, lost revenue over several months, and additional costs.
Anheuser Busch InBev increased 0.4% to $62.75 and the union representing workers called for a strike if wage negotiations fail.
The International Brotherhood of Teamsters said in a press release that its members working at Anheuser-Busch plants in the U.S. have voted by 99% to authorize a strike if company fails to provide a strong contract.
The current agreement is scheduled to expire on February 29, 2024, and the union representing 5,000 members working at 12 plants is seeking higher wages, stronger job security, and expanded healthcare and retirement benefits.
Illumina, Inc. rose 4.6% to $133.0 after the San Diego-based biotech company said it plans to divest its acquisition of cancer screening company Grail.
Illumina faced an uphill task in convincing regulators after an appeals court ruled on Friday that the $7 billion merger could violate antitrust laws.
Earlier in October, the antitrust regulatory agency of the European Union also slapped the company with a fine of $475 million for completing the merger before receiving its consent.
The company said it plans to sell the company to a third party or complete a public offering before the end of 2024.
Adobe increased 2% to $595.50 after the company and Figma said they plan to cancel their $20 billion merger plan, citing regulatory hurdles.
U.S. Major Averages Trend Higher Overlooking Cautious Comments from Policymakers
Barry Adams
18 Dec, 2023
New York City
U.S. benchmark indexes edged higher and extended their gains from the previous week, and the dollar index continued to drift lower.
The S&P 500 index and the Nasdaq Composite advanced despite cautious comments from policymakers across the Atlantic on rate outlooks.
Policymakers ramped up comments to push back market enthusiasm about possible sooner-than-expected rate cuts as early as March 2024 and stressed that inflation is still too high.
New York Fed president John C. Williams said talks of rate cuts as early as March seem premature, tempering market bets on imminent rate cuts.
Federal Reserve Bank of Chicago president Austan Goolsbee said in an interview with CBS on Sunday that it is too early to declare victory over inflation and that interest rate decisions would depend on incoming data.
European Central Bank Governing Council member and president of Bundesbank Joachim Nagel said Friday that the central bank has probably concluded its hiking stance, but it's still too early to talk about lower borrowing costs.
Members of the European Central Bank, Philip Lane and Isabel Schnabel, as well as Governor of the Bank of England Ben Broadbent, are anticipated to share their opinions later in the day.
Investors have stepped up bidding for stocks, and the broader S&P 500 index is up 3.3% in December, and the Nasdaq is ahead by 4.1%.
Market sentiment was bolstered last week after the Federal Reserve suggested that three rate cuts totaling 75 basis points are likely in 2024.
Despite the pushback from policymakers on Friday and over the weekend, market enthusiasm for stocks remained.
Cooling inflation, slowing but steady economic growth, and higher-than-expected job gains are expected to contribute to consumer spending resilience and corporate earnings growth.
U.S. Indexes and Yields
The S&P 500 index gained 0.2% to 4,772.23, and the Nasdaq Composite increased 0.09% to 14,683.15.
The yield on 2-year Treasury notes increased to 4.43%, 10-year Treasury notes inched lower to 3.90%, and 30-year Treasury bonds eased to 4.01%.
Crude oil increased $0.70 to $72.12 a barrel, and natural gas prices increased 8 cents to $2.57 a thermal unit.
Gold increased $3.30 to $2,021.98 an ounce and extended gains for the third day in a row after the dollar declined following the Fed's rate decision and announcement to cut rates several times over the next two years.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.57 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.
U.S. Stock Movers
U.S. Steel Corporation surged 28.2% to $50.33 after the steelmaker accepted the $55 per share offer from Japan-based Nippon Steel in cash.
The offer values the steel company at $14.9 billion in enterprise value, and the deal is expected to close in the second or third quarter of 2024.
Southwest Airlines declined 0.4% to $28.90, and the company reached a $140 million agreement, including a $35 million fine.
The fourth-largest U.S. airline by revenue settled a federal investigation for thousands of flight cancellations and stranding 2 million passengers after heavy snowstorms in Denver and Chicago in December 2022.
The U.S. Department of Transportation said the total charges are the largest it has ever imposed on an airline for violating consumer protection laws.
Before the government's assessment, Southwest said that the reservation system meltdown cost the airline about $1.1 billion in refunds, reimbursements, lost revenue over several months, and additional costs.
Europe Movers: CRH, iliad Group, Software AG, Thyssenkrupp Nucera, Unilever, Vodafone
Inga Muller
18 Dec, 2023
Frankfurt
Cautions comments from policymakers on rate outlook tempered stock market enthusiasm in Monday's trading and bond yields hovered near 9-month lows.
The DAX index decreased 0.2% to 16,719.03, the CAC-40 index eased 0.5% to 7,562.46, and the FTSE 100 index increased 0.4% to 7,605.29.
Bond yields in the eurozone hovered near nine-month lows after the European Central Bank and the Bank of England held their interest rates steady on Thursday.
Vodafone Group plc increased 6.4% to 68.88 pence after the iliad Group proposed to merge its Italian business with Vodafone Italia.
The proposal valued Vodafone Italia at €10.45 billion, and Vodafone would obtain 50% of the share capital of NewCo, together with a €6.5 billion cash payment and a €2.0 billion shareholder loan to ensure long-term alignment.
The proposal valued Iliad Italia at €4.45 billion. Iliad would obtain 50% of the share capital of NewCo, together with a €500 million cash payment and a €2.0 billion shareholder loan.
Vodafone’s equity in NewCo at closing was valued at €1.95 billion.
Iliad said that the current proposal values the company at 7.8 times operating earnings, higher than the 7.1 times previously proposed in February 2022.
CRH plc declined 0.5% to 5,280.0 pence after the company partnered with Barro Group to acquire Australian cement manufacturing company Adbri.
The proposal values the Australian company at A$2.1 billion, a 41% premium from the previous closing price.
Barro Group and its associates currently own 42.7% of the company.
Unilever plc decreased 0.08% to 3,752.50 pence after the consumer products company said it agreed to sell its Q-Tips maker Elida Beauty for an undisclosed amount to Boston-based private equity firm Yellow Wood.
Thyssenkrupp Nucera gained 2.4% to €16.40 after the company swung in the fiscal fourth quarter to a net income of €4.3 million compared to a loss of €1.2 million in the previous year.
Software AG added 1.2% to €32.32 after IBM agreed to acquire the company's enterprise tech business for €2.13 billion in cash.
European Markets Temper Enthusiasm After Cautious Comments from Policymakers
Bridgette Randall
18 Dec, 2023
Frankfurt
European markets struggled to advance in Monday's trading, and bond yields hovered near 9-month lows in the region.
Benchmark indexes in Frankfurt, Paris, and London edged lower after cautious comments from Fed and ECB policymakers on rate outlooks.
Policymakers ramped up comments to push back market enthusiasm about possible sooner-than-expected rate cuts as early as March 2024 and stressed that inflation is still too high.
European Central Bank Governing Council member and president of Bundesbank Joachim Nagel said Friday that the central bank has probably concluded its hiking stance, but it's still too early to talk about lower borrowing costs.
Members of the European Central Bank, Philip Lane and Isabel Schnabel, as well as Deputy Governor of the Bank of England Ben Broadbent, are anticipated to share their opinions later in the day.
New York Fed president John C. Williams said talks of rate cuts as early as March seem premature, tempering market bets on imminent rate cuts.
Federal Reserve Bank of Chicago president Austan Goolsbee said in an interview with CBS on Sunday that it is too early to declare victory over inflation and that interest rate decisions would depend on incoming data.
Closer to the region, the Ifo Business Climate indicator for Germany unexpectedly fell to a three-month low of 86.4 in December from the downwardly revised 87.2 in November.
The business mood soured due to the current business conditions and business prospects in the upcoming months.
Europe Indexes and Yields
The DAX index decreased 0.2% to 16,719.03, the CAC-40 index eased 0.5% to 7,562.46, and the FTSE 100 index increased 0.4% to 7,605.29.
Bond yields in the eurozone hovered near nine-month lows after the European Central Bank and the Bank of England held their interest rates steady on Thursday.
The yield on 10-year German bonds decreased to 2.01%; French bonds traded lower to 2.54%; the UK gilts eased to 3.64%; and Italian bonds inched lower to 3.71%.
The euro traded higher to $1.092, the British pound inched higher to $1.268, and the U.S. dollar eased to 86.82 Swiss cents.
Brent crude increased $0.01 to $76.56 a barrel, and the Dutch TTF natural gas increased by €0.11 to €33.30 per MWh.
Europe Stock Movers
Vodafone Group plc increased 6.4% to 68.88 pence after the iliad Group proposed to merge its Italian business with Vodafone Italia.
The proposal valued Vodafone Italia at €10.45 billion, and Vodafone would obtain 50% of the share capital of NewCo, together with a €6.5 billion cash payment and a €2.0 billion shareholder loan to ensure long-term alignment.
The proposal valued Iliad Italia at €4.45 billion. Iliad would obtain 50% of the share capital of NewCo, together with a €500 million cash payment and a €2.0 billion shareholder loan.
Vodafone’s equity in NewCo at closing was valued at €1.95 billion.
Iliad said that the current proposal values the company at 7.8 times operating earnings, higher than the 7.1 times previously proposed in February 2022.
CRH plc declined 0.5% to 5,280.0 pence after the company partnered with Barro Group to acquire Australian cement manufacturing company Adbri.
The proposal values the Australian company at A$2.1 billion, a 41% premium from the previous closing price.
Barro Group and its associates currently own 42.7% of the company.
Unilever plc decreased 0.08% to 3,752.50 pence after the consumer products company said it agreed to sell its Q-Tips maker Elida Beauty for an undisclosed amount to Boston-based private equity firm Yellow Wood.
Thyssenkrupp Nucera gained 2.4% to €16.40 after the company swung in the fiscal fourth quarter to a net income of €4.3 million compared to a loss of €1.2 million in the previous year.
Software AG added 1.2% to €32.32 after IBM agreed to acquire the company's enterprise tech business for €2.13 billion in cash.
Movers: Ambuja Cements, IRB Infrastructure, JSW Steel, Solar Industries, Zee Entertainment
Arun Goswami
18 Dec, 2023
Mumbai
Benchmark indexes in Mumbai edged lower after advancing for seven weeks in a row.
The Sensex index decreased 26.68 points to 71,457.07, and the Nifty index fell 1.2 points to 21,455.45.
On the Mumbai stock exchange, 144 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
Tech services providers were among the leading gainers, and banks were among the leading decliners in Monday's trading.
State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra, Axis Bank, and Bank of Baroda fell around 0.5%.
TCS, Infosys, Wipro, Tech Mahindra, and HCL advanced between 0.2% and 0.6%.
Zee Entertainment decreased 2.6% to ₹270.40, and the company sought an extension for its proposed merger with Sony India on December 21.
The merger proposal has won all regulatory approvals, and two companies are deadlocked in finalizing who will lead the merged company.
Solar Industries India declined 2.7% to ₹6,731.55 after the company said an explosion at its manufacturing plant in Nagpur, Maharashtra, killed nine people and injured several others on Sunday.
Ambuja Cements increased 1.4% to ₹529.70 and the company plans to increase its green power capacity to 60% from the current 19% through investment of ₹6,000 crore over the next three years.
The company announced its decision in a filing with exchanges to invest in solar and wind power plants in Gujarat and Rajasthan.
IRB Infrastructure Developers gained 4.9% to ₹42.80 after the company said its subsidiary won an award from the National Highway Authority of India.
The NHAI awarded a construction order for Gwalior-Jhansi Kota Bypass Projects worth 1,683 crore and revenue linked concession period for 20 years.
JSW Steel declined 1.4% to ₹854.65 after the Mumbai police filed a First Information Report against Chairman of JSW Group Sajjan Jindal, responding to a rape and sexual assault complaint by a 30-year old woman.
Mumbai Stocks Lacked Direction After Rallying Seven Consecutive Weeks
Arjun Pandit
18 Dec, 2023
Mumbai
Stocks in Mumbai struggled in Monday's trading amid Asia-wide weakness.
The benchmark index edged lower after advancing for seven weeks in a row, and investors stayed on the sidelines ahead of the central bank decisions in China and Japan this week.
The Bank of Japan is widely expected to hold its ultra-loose monetary policy intact, and investors are hoping to get additional insights into the future rate path.
Policymakers in Japan have kept interest rates close to zero, the only major central bank to keep rates unrevised in the last eighteen months, increasing the rate differential with the U.S. and the Euro Area and putting additional pressure on the Japanese yen.
The People's Bank of China is set to announce its loan prime rate, and investors are hoping that the central bank will also provide additional stimulus and support the residential property market.
In Friday's trading, market indexes in New York closed mixed but extended gains for the seventh week in a row amid hopes of sooner-than-expected rate cuts in 2024.
European markets also extended gains for the fifth week in a row, despite the deepening woes in the manufacturing sector in the eurozone.
Moreover, the yields on bonds in the eurozone dropped to the level last seen in mid-January, and the euro held below $1.10 as the European Central Bank reiterated its focus on bringing down inflation to 2%, despite the growing economic weakness.
India Indexes and Yields
The Sensex index decreased 26.68 points to 71,457.07, and the Nifty index fell 1.2 points to 21,455.45.
On the Mumbai stock exchange, 144 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.16%, and the Indian rupee hovered near ₹82.93 against the U.S. dollar.
The gold price decreased by 0.3% to ₹62,009 per ten grams, and silver edged up by 0.06% to ₹74,568 per kilo.
Crude oil decreased by 0.03% to ₹6,008 per barrel, and natural gas fell by 0.2% to ₹210.10 per thermal unit.
India Stock Movers
Tech services providers were among the leading gainers, and banks were among the leading decliners in Monday's trading.
State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra, Axis Bank, and Bank of Baroda fell around 0.5%.
TCS, Infosys, Wipro, Tech Mahindra, and HCL advanced between 0.2% and 0.6%.
Zee Entertainment decreased 2.6% to ₹270.40, and the company sought an extension for its proposed merger with Sony India on December 21.
The merger proposal has won all regulatory approvals, and two companies are deadlocked in finalizing who will lead the merged company.
Solar Industries India declined 2.7% to ₹6,731.55 after the company said an explosion at its manufacturing plant in Nagpur, Maharashtra, killed nine people and injured several others on Sunday.
S&P 500 Inches Closer to Record High as Rally Stretches to Seventh Week
Barry Adams
15 Dec, 2023
New York City
U.S. market indexes are set to trade higher and build on the gains of the week in Friday's trading after the yield on 10-year Treasury notes hovered at the level last seen in July.
The S&P 500 index and the Nasdaq Composite are up 2.5% this week, and market indexes are likely to close higher for the seventh week in a row.
The Dow Jones Industrial Average, which includes 30 mega-cap companies, traded at a new record high, and the S&P 500 index is only about 1.5% away from its record high reached in January 2022.
The Nasdaq Composite is about 8% away from its record high.
Investors have been bidding up stocks for the last two months, and sentiment was bolstered this week after the Federal Reserve confirmed higher rates are contributing to the sustained weakening in inflation.
Moreover, the Fed's signaling of possible rate cuts in 2024 supported the market advance, and the increase in retail sales provided another upward push to the market sentiment.
The U.S. market rally sparked a worldwide advance, and market indexes in the eurozone also gained after the European Central Bank held its rates steady for the second consecutive time and countered the talks of rate cuts in early 2024.
The Bank of England held its interest rates for the third time in a row, and it stressed that interest rates are likely to stay higher for an "extended period of time."
Elsewhere in the world, the central bank in Brazil lowered its reference rate for the fourth time in a row to 17.25%, and the central bank of Russia hiked its reference rate to 100 basis points to 16%, the fifth increase in a row since July, when rates were 8%.
U.S. Indexes and Yields
The S&P 500 index gained 0.09% to 4,709.60, and the Nasdaq Composite decreased 0.2% to 14,705.64.
The yield on 2-year Treasury notes increased to 4.39%, 10-year Treasury notes inched lower to 3.91%, and 30-year Treasury bonds eased to 4.04%.
Crude oil increased $0.27 to $71.82 a barrel, and natural gas prices eased 0.2 cents to $2.39 a thermal unit.
Gold increased $6.35 to $2,041.98 an ounce and extended gains for the second day in a row after the dollar declined following the Fed's rate decision and announcement to cut rates several times over the next two years.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 102.04.
U.S. Stock Movers
Scholastic Corp. dropped 12.7% to $36.21 after the publishing company reported a decline in revenue in its latest quarter.
Revenue in the fiscal second quarter ending in November fell 4% to $562.6 million from $587.9 million, net income advanced to $101.5 million from $100.9 million, and diluted earnings per share rose to $2.45 from $2.12 a year ago.
Revenue declined after the company reduced promotional activities and also eliminated unprofitable orders from book clubs.
The company lowered its full-year 2024 revenue growth outlook to stable or slightly below the prior year compared to its previous estimate of growth of 3% to 5%.
Quanex Building Products declined 7.5% to $31.99, despite the building product maker reporting higher-than-expected revenue.
Revenue in the fiscal fourth quarter ending in October decreased to $295.5 million from $307.5 million, net income advanced to $27.4 million from $24.7 million, and diluted earnings per share rose to 83 cents from 75 cents a year ago.
The company attributed weaker sales to lower prices and softer market demand in North America.
The company did not issue fiscal year 2024 guidance, citing macroeconomic challenges compounded by season uncertainties, but said it would provide an annual estimate at the time of the release of the fiscal first quarter results.
U.S. Movers: Scholastic, Quanex Building Products
Scott Peters
15 Dec, 2023
New York City
Scholastic Corp. dropped 12.7% to $36.21 after the publishing company reported a decline in revenue in its latest quarter.
Revenue in the fiscal second quarter ending in November fell 4% to $562.6 million from $587.9 million, net income advanced to $101.5 million from $100.9 million, and diluted earnings per share rose to $2.45 from $2.12 a year ago.
Revenue declined after the company reduced promotional activities and also eliminated unprofitable orders from book clubs.
The company lowered its full-year 2024 revenue growth outlook to stable or slightly below the prior year compared to its previous estimate of growth of 3% to 5%.
Quanex Building Products declined 7.5% to $31.99, despite the building product maker reporting higher-than-expected revenue.
Revenue in the fiscal fourth quarter ending in October decreased to $295.5 million from $307.5 million, net income advanced to $27.4 million from $24.7 million, and diluted earnings per share rose to 83 cents from 75 cents a year ago.
The company attributed weaker sales to lower prices and softer market demand in North America.
The company did not issue fiscal year 2024 guidance, citing macroeconomic challenges compounded by season uncertainties, but said it would provide an annual estimate at the time of the release of the fiscal first quarter results.
Europe Movers: H&M, Munich Re, Sectra, Symrise
Inga Muller
15 Dec, 2023
Frankfurt
European stocks advanced and bond yields eased to 9-month lows after a flurry of key policy decisions from major central banks on Thursday supported a global market upswing for the second day.
The DAX index increased 0.6% to 16,848.20, the CAC-40 index rose 0.4% to 7,605.67, and the FTSE 100 index decreased 0.05% to 7,644.84.
Bond yields in the eurozone hovered near nine-month lows after the European Central Bank and the Bank of England held their interest rates steady on Thursday.
The yield on 10-year German bonds decreased to 2.04%; French bonds traded lower to 2.57%; the UK gilts eased to 3.73%; and Italian bonds inched higher to 3.72%.
Munich Re rose 1.4% to €381.70 after the Germany-based reinsurance company estimated a higher profit in 2024.
The company estimated 2024 profit to increase to €5 billion from €4.5 billion in 2023, citing stable business conditions in all business segments.
H&M rose 1.04% to SEK 178.56 after the Swedish retailer posted a 4% decline in sales in local currencies in the fiscal quarter ending in November.
Net sales in the fiscal year 2023 ending in November rose 6% to SEK 226 billion from SEK 223.5 billion in the previous year.
Excluding Russia and Belarus, sales increased by 8% in the Swedish Kronor and 1% in local currencies.
Sectra AB surged 13.4% to SEK 167.84 after the Swedish technology company reported strong interim earnings, driven by the strength in all operating units.
Net sales in the quarter ending in October soared 40.2% to SEK 787.7 million, and cloud recurring revenue soared 56.7% to SEK 93.4 million.
Net sales in the six months to October rose 31.1% to SEK 1,371.5 million, and cloud recurring revenue jumped 64.1% to SEK 179.8 million.
Symrise AG dropped 8.7% to €96.90 after the German flavor and fragrance chemical company trimmed its full-year EBITDA margin estimate.
European Market Rally Extends to the Fifth Week; Eurozone Private Sector Woes Deepen
Bridgette Randall
15 Dec, 2023
Frankfurt
European markets retained an upward bias and extended their gains on the final day of the week.
Benchmark indexes in Frankfurt, Paris, and London advanced after several central banks announced their rate decisions on Thursday.
Investors also hoped that China would ramp up economic stimulus after the latest updates on retail sales, industrial activities, the jobless rate, and fixed asset investment growth generally painted a weaker-than-expected picture.
Retail sales surged 10.1% in November, faster than 7.6% in October, and industrial production accelerated 6.6% from 4.6%, respectively.
The unemployment rate held steady at 5.0%, and fixed asset investment growth rose 2.9%, matching the rate in the previous month.
Eurozone Private Sector Woes Deepen
The HCOB Eurozone Composite PMI eased to 47.0 in December and eased for the seventh consecutive month in the currency union, S&P Global reported Friday.
The composite index eased from 47.6 in November after manufacturing activities declined for the ninth month in a row.
New order flows declined for the seventh month in a row, and backlog fell sharply and eased for the seventeenth time in the past 18 months.
However, input cost inflation decelerated, but sales prices rose at the fastest pace in seven months, driving business sentiment to the highest level in four months.
Europe Indexes and Yield
The DAX index increased 0.6% to 16,848.20, the CAC-40 index rose 0.4% to 7,605.67, and the FTSE 100 index decreased 0.05% to 7,644.84.
Bond yields in the eurozone hovered near nine-month lows after the European Central Bank and the Bank of England held their interest rates steady on Thursday.
The yield on 10-year German bonds decreased to 2.04%; French bonds traded lower to 2.57%; the UK gilts eased to 3.73%; and Italian bonds inched higher to 3.72%.
The euro traded higher to $1.096, the British pound inched higher to $1.276, and the U.S. dollar eased to 86.69 Swiss cents.
Crude oil extended its weekly gain after the dollar eased, and the International Energy Agency, a consortium of European nations, the United States, and Japan, offered a bullish forecast for oil demand growth.
World oil demand in 2013 is expected to rise 2.3 million barrels per day to 101.7 mbpd, despite the demand slowdown in the fourth quarter.
The agency estimated world oil output in 2023 to surge by 1.8 mbpd to 101.9 mbpd, driven in large part by the increase in U.S. production to 20 mbpd, record production in Brazil and Guyana, and a rebound in Iranian oil production.
Brent crude increased $0.12 to $76.72 a barrel, and the Dutch TTF natural gas increased by €0.50 to €34.35 per MWh.
Europe Stock Movers
Munich Re rose 1.4% to €381.70 after the Germany-based reinsurance company estimated a higher profit in 2024.
The company estimated 2024 profit to increase to €5 billion from €4.5 billion in 2023, citing stable business conditions in all business segments.
Swedish retailer H&M rose 1.04% to SEK 178.56 after the company posted a 4% decline in sales in local currencies in the fiscal quarter ending in November.
Net sales in the fiscal year 2023 ending in November rose 6% to SEK 226 billion from SEK 223.5 billion in the previous year.
Excluding Russia and Belarus, sales increased by 8% in the Swedish Kronor and 1% in local currencies.
Movers: Genus Power, Hero Motocorp, Sterling and Wilson, Texmaco Rail, Xpro India
Arun Goswami
15 Dec, 2023
Mumbai
Stocks in Mumbai extended weekly gains for the eighth week in a row after major central banks held their interest rates steady.
The Sensex index increased 176.59 points to 70,690.79, and the Nifty index rose 58.15 points to 21,240.80.
On the Mumbai stock exchange, 211 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Tech services providers and metals and mining stocks were among the gainers, but financial services providers and banks struggled.
TCS, Infosys, Tech Mahindra, and Wipro gained 2% and 4%.
State Bank of India, Axis Bank, Kotak Bank, HDFC Bank, and Canara Bank declined between 0.1% and 1.3%.
Maruti Suzuki, Tata Motors, and Mahindra & Mahindra traded mixed.
Sterling and Wilson Renewable Energy gained 2.7% to ₹435.85 after the company raised 1,500 crore in an institutional offering priced at ₹347 per share.
Texmaco Rail & Engineering advanced 4.6% to ₹178.60 after the company won an order to supply 3,400 rail wagons for ₹1,374 crore.
Xpro India increased 2.2% to ₹1,063.80 after the company scheduled a board meeting on December 19 to consider different fund-raising plans.
Genus Power Infrastructures soared 5% to ₹234.50 after the company's subsidiary won a project worth ₹1,026 crore.
Infibeam Avenues jumped 6.7% to ₹23.90 after the company acquired a 49% stake in digital lending software developer Pirimid Fintech for ₹25 crore.
Hero Motocorp increased0.6% to ₹3,908.0 and the company said it plans to buy additional stake up to 3% in Ather Energy for up to ₹140 crore.
Nifty and Sensex Extend Rally to Eighth Consecutive Week
Arjun Pandit
15 Dec, 2023
Mumbai
Stocks in Mumbai advanced in Friday's trading after major central banks around the world announced their rate decisions.
The Sensex and the Nifty indexes advanced around 0.5% and extended their weekly gains to 1.3% following the interest rate decisions by the U.S. Federal Reserve, the European Central Bank, the Bank of England, and the Swiss National Bank.
Market indexes in India and around the world advanced after the Fed held its key lending rate range between 5.25% and 5.50% steady and signaled multiple rate cuts over the next two years.
On the other hand, the European Central Bank held its reference rate for the second time in a row at 4.0% and stressed the need for higher rates, citing inflationary pressure above the target rate of 2%.
The Bank of England also held its policy rate at 5.25% for the third time in a row and announced that rates are likely to remain higher for an extended period.
The Swiss National Bank held its interest rate at 1.75%, but the Norges Bank hiked its policy rate by 25 basis points to 4.5% and said inflation is still way too high and needs to be brought down to 2% from the current 5% level.
The Banco Central do Brasil lowered its key Selic rate by 50 basis points for the fourth time in a row to 11.75%.
Closer to home, India's wholesale price index increased 0.26% from a year ago in November after contracting 0.52% in October, the statistical office reported late Thursday.
Wholesale inflation rebounded to a positive zone and rose to an eight-month high after contracting for seven months in a row.
India Indexes and Yields
The Sensex index increased 176.59 points to 70,690.79, and the Nifty index rose 58.15 points to 21,240.80.
On the Mumbai stock exchange, 211 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.18%, and the Indian rupee hovered near ₹83.13 against the U.S. dollar.
The gold price increased by 0.1% to ₹62,533 per ten grams, and silver soared by 0.07% to ₹75,127 per kilo.
Crude oil decreased by 0.4% to ₹6,044 per barrel, and natural gas rose by 3.2% to ₹202.90 per thermal unit.
India Stock Movers
Tech services providers and metals and mining stocks were among the gainers, but financial services providers and banks struggled.
TCS, Infosys, Tech Mahindra, and Wipro gained 2% and 4%.
State Bank of India, Axis Bank, Kotak Bank, HDFC Bank, and Canara Bank declined between 0.1% and 1.3%.
Maruti Suzuki, Tata Motors, and Mahindra & Mahindra traded mixed.
Sterling and Wilson Renewable Energy gained 2.7% to ₹435.85 after the company raised 1,500 crore in an institutional offering priced at ₹347 per share.
Texmaco Rail & Engineering advanced 4.6% to ₹178.60 after the company won an order to supply 3,400 rail wagons for ₹1,374 crore.
Xpro India increased 2.2% to ₹1,063.80 after the company scheduled a board meeting on December 19 to consider different fund-raising plans.
Genus Power Infrastructures soared 5% to ₹234.50 after the company's subsidiary won a project worth ₹1,026 crore.
Infibeam Avenues jumped 6.7% to ₹23.90 after the company acquired a 49% stake in digital lending software developer Pirimid Fintech for ₹25 crore.