Sensex Today Live | Share Market Updates: Fed Sees Risks for Banks From US Office Space, Interest Rates
The Federal Reserve said Thursday that it’s keeping close tabs on potential losses at banks mood from commercial real estate and elevated interest rates.
The central bank laid out the areas of concern in its semiannual report on supervision, adding that it has bolstered oversight following this year’s collapse of multiple midsize lenders. Thursday’s report is just the latest to highlight how last year’s rapid rate hikes affected banks.
“The Federal Reserve is committed to taking additional steps to strengthen its supervisory efforts,” the central bank said. The Fed said it’s also stepping up training for examiners.
The collapses of Silicon Valley Bank and Signature Bank in March exposed gaps in federal oversight. Michael Barr, the Fed’s vice chair for supervision, has pledged changes. In addition to new regulations, he has said the regulator will reevaluate how it scrutinizes a bank’s management of interest-rate liquidity risks. (Bloomberg)
Sensex Today: Stocks to Watch: ESAF SFB, ICICI Bank, ICICI Securities, Zee Entertainment, Apollo Hosp, Ashok Leyland, Religare, Jindal Steel and Power, REC, RailTel, Adani Enterprises, and SJVN
- ESAF Small Finance Bank: The shares are set to be listed on November 10 at ₹60 per share. ESAG Small Finance Bank shares are trading at a premium of ₹21 in the gray market. The public issue was open for subscription from November 3 to November 7, 2023.
- ICICI Bank/ICICI Securities: ICICI Bank has received approval from the Reserve Bank of India to convert ICICI Securities into a wholly-owned subsidiary and delist its equity shares.
- Zee Entertainment: Talks on the merger between Zee Entertainment Enterprises Ltd and Sony Pictures Networks India have stalled due to disagreement over the leadership of the merged entity.
- Apollo Hospitals: Reported a 14% year-on-year rise in net profit to ₹2.33 billion in the September quarter due to an increase in patients. The company plans to expand its operations.
- Religious Enterprises: The Burman family alleged insider trading by Religare Enterprises Ltd’s executive chairperson, which the company denied, citing pre-planned sales.
- Ashok Leyland: Second-largest commercial vehicle manufacturer in India, reported a smaller-than-expected second-quarter profit due to rising costs despite strong demand.
- Jindal Steel and Power: Plans to make itself self-reliant in thermal coal with mines in Odisha by early next year, expecting improved operating margins.
- REC/RailTel: REC Ltd. agreed to provide ₹30,000 crore in funding to RailTel Corp. for railway communication and IT infrastructure projects over the next five years.
- Adani Enterprises: Plans to invest $1.5 billion in its data center business over the next three years, aiming for growth after a challenging period.
- SJVN Ltd: Reported a marginal decline in consolidated net profit to ₹439.64 crore in the September quarter, with increased total expenses and income. (Read More)
Sensex Today Live: Apple agrees to $25 million settlement with US over hiring of immigrants
Apple Inc. will pay $25 million to settle claims by the US Department of Justice that the company illegally favored immigrant workers over US citizens and green card holders for certain jobs, the agency said on Thursday.
The Justice Department in a statement said Apple did not recruit US citizens or permanent residents for jobs that were eligible for a federal program allowing employers to sponsor immigrant workers for green cards, in violation of a federal law that bars discrimination based on citizenship. (Read More)
Sensex Today Live: India rupee will have to contend with jump in US yields, dollar
The Indian rupee on Friday will have to deal with a surge in US Treasury yields and a rally on the dollar following hawkish commentary from US Federal Reserve officials, including Chair Jerome Powell.
Non-deliverable forwards indicate the rupee will open at around 83.27-83.29 to the US dollar compared with 83.28 in the previous session and near its 83.2950 lifetime low.
The move up in US yields “will bother the rupee”, but then “it never reacted to the move lower on US yields and it will not react to the reversal”, a forex trader said.
“At the current level, you can’t expect anything to happen.” (Reuters)
Sensex Today Live | Share Market Updates: Buy or sell: Vaishali Parekh recommends three stocks to buy today
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher recommends these stocks for day trading:
1]Coal India: Buy at ₹323.55, target ₹340, stop loss ₹317;
2]APL Apollo Tubes: Buy at ₹1646.35, target ₹1725, stop loss ₹1617; and
3]NOCIL: Buy at ₹224.95, target ₹236, stop loss ₹2221. (Read More)
Sensex Today Live: Adani flagship aims big on data centers with $1.5 billion capex planned
Adani Enterprises Ltd., the flagship of billionaire Gautam Adani, will spend around $1.5 billion on its fledgling data center business in the next three years, as growth focus returns at the Indian conglomerate after a short seller attack sent it into months of damage control.
The annual capital expenditure on the data center business, called AdaniConnex Pvt. — a joint venture with the global data center provider EdgeConnex Inc. — is expected to be about $500 million this year as well as the next two years, Jugeshinder Singh, Adani Enterprises chief financial officer, told analysts according to a filing late Wednesday. (Read More)
Sensex Today: REC signs pact with RailTel; to finance infrastructure projects in telecom, IT and railway signaling
State-owned REC on Thursday said it has inked a pact with RailTel to finance up to ₹30,000 crore for infrastructure projects in telecom, IT and railway signaling.
“REC Limited signed an MoU with RailTel on 9th November 2023 to extend financial assistance up to ₹30,000 crore for infrastructure projects to be executed by RailTel in next 5 years,” an REC statement said.
According to the statement, these projects encompass a wide range of areas, including data center products and services, telecom & IT products and services, railways & metro projects, and the KAVACH train collision prevention system.
Additionally, the agreement extends to the possibility of financing overseas ventures related to high-speed rail, metro, IT network, and the upgrade of railway network, as part of bilateral country discussions and infrastructure projects in Southeast Asia and Eastern Africa where RailTel is currently focusing. (PTI)
Sensex Today Live: Dividend stocks: Dabur, Indian Oil, IRFC, 16 other shares to trade ex-dividend today
Dividend stocks 2023: Shares of Dabur India Ltd, Indian Oil Corporation Ltd, 360 One Wam Ltd, ADF Foods Ltd, Allsec Technologies Ltd, Amara Raja Energy & Mobility Ltd, Avance Technologies Ltd, CARE Ratings Ltd, Indian Metals & Ferro Alloys Ltd, Insecticides (India) Ltd, Indian Railway Finance Corporation Ltd, LKP Finance Limited, MK Proteins Ltd, Navin Fluorine International Limited, NIIT Ltd, NIIT Learning Systems Ltd, Petronet LNG Ltd, QGO Finance Ltd, Safari Industries (India) Ltd, and Surya Roshni Ltd will be in focus when stock market opens today. (Read More)
Sensex Today Live | Share Market Updates: Ashok Leyland posts Q2 profit miss on higher costs
Ashok Leyland Ltd, the second largest commercial vehicle manufacturer in India, disclosed a second-quarter profit that was lower than anticipated, primarily due to increasing costs counterbalancing the robust demand for its trucks and buses.
The standalone profit for the three months ended in September surged more than two-fold to 5.61 billion rupees ($67.36 million). However, this figure fell short of analysts’ expectations of 6.28 billion rupees, as reported by LSEG data.
The Chennai-based automobile manufacturer also reported a 16.6% increase in revenue from operations for the quarter. (Read More)
Sensex Today Live: ESAF Small Finance Bank IPO listing date today. GMP, experts signal strong debut of shares
The initial public offering (IPO) of ESAF Small Finance Bank Limited is scheduled to be listed on the stock exchanges today, 10th November 2023. According to the BSE notification, the equity shares of ESAF Small Finance Bank Ltd will be listed and made available for trading on the Exchange under the ‘B’ Group of Securities. The listing will occur during a special pre-open session on both the BSE and NSE.
Meanwhile, gray market sentiments in regard to ESAF Small Finance Bank IPO has gone down. According to market observers, shares of ESAF Small Finance Bank Limited are available at a premium of ₹20 in the gray market today, which is Re 1 lower than the previous session. (Read More)
Sensex Today Live | Share Market Updates: Sony’s googly on CEO may stump Zee merger
Talks on the mega-merger between Zee Entertainment Enterprises Ltd and Sony Pictures Networks India (SPNI) have stalled over the latter’s last-minute demand that its executive lead the merged entity instead of Punit Goenka as agreed before. According to two people aware of the matter, failure to reach an agreement by the 21 December deadline may derail the merger, the biggest in India’s entertainment industry.
In a scheme of arrangement signed on December 21, 2021, the two entertainment giants agreed that Goenka, currently managing director (MD) and chief executive officer (CEO) of Zee, will continue in the same position in the merged entity for five years. (Read More)
Sensex Today: Wall Street falls on Thursday after the bond market cranks up the pressure again
Stocks fell Thursday to break one of Wall Street’s longest winning streaks in two decades after the pressure cranked higher from the bond market.
The S&P 500 sank 35.43 points, or 0.8%, to 4,347.35. The Dow Jones Industrial Average dropped 220.33, or 0.6%, to 33,891.94, and the Nasdaq composite lost 128.97, or 0.9%, to 13,521.45.
Stocks had been higher earlier in the day, and the S&P 500 was on track for a ninth straight gain, which would have been its longest winning streak in 19 years. But the stock market quickly sagged under the weight of rising yields in the bond market.
Treasury yields rose in the morning after a report suggested the US job market remains remarkably solid. They climbed further when the US government announced the results of a sale of $24 billion in Treasury bonds. And then they spurted higher after Federal Reserve Chair Jerome Powell said the Fed “will not hesitate” to raise interest rates further if it feels high inflation is not fully under control.
The 10-year Treasury yield, which is the centerpiece of the bond market, rose to 4.63% from 4.50% late Wednesday. (AP)