Benchmark equity indices settled higher on Wednesday following gains in FMCG, consumer durables, and healthcare stocks amid strong buying from domestic institutional investors (DIIs). However, foreign capital outflows amid a cautious trend in global markets ahead of the US Fed minutes restricted the gains in domestic markets.
The BSE Sensex gained 102.44 points or 0.13 per cent to close at 80,905.30. The NSE Nifty rose 71.35 points or 0.29 per cent to end at 24,770.20. Defensive sectors like FMCG, Consumer durables and Healthcare gained more than 1 per cent, while Banking and Realty on the other hand witnessed selling pressure.
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“This Thursday morning brings welcome news for Nifty bulls eagerly anticipating an interest-rate cut. The catalyst: FOMC Minutes hint at a September rate reduction by the Federal Reserve. All eyes now shift to Jerome Powell's upcoming Jackson Hole speech on Friday at 10:00 AM ET, where market participants await confirmation of the rate cut timing and magnitude,” said Prashanth Tapse, senior VP (Research) at Mehta Equities Ltd.
“Nifty is poised for upward momentum, targeting its all-time high of 25078.30. In recent trading, Nykaa surged 10 per cent, hitting a two-year high on strong Q1FY25 results, while Larsen & Toubro gained attention with a significant infrastructure project win,” he said.
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Here are the key stocks to watch on August 22:
Zomato: The company will acquire Paytm’s entertainment ticketing business for Rs 2,048 crore. Entertainment ticketing business, including movies, sports, and events, will be available on the Paytm app during a transition period of up to 12 months. Subsequently, Zomato will spino off the new business into a new app called ‘District’. As part of the deal, 280 employees will move to Zomato.
BEML: The company has signed a strategic Memorandum of Understanding (MoU) with the Directorate of Marine Engineering, Indian Navy to develop advanced marine applications for defense. "This landmark agreement is a pivotal step in enhancing bilateral cooperation for the indigenous design, development, manufacture, testing, and product support of critical marine equipment and systems," the BEML said in a statement. The collaboration aims to strengthen self-reliance in defence production and minimise reliance on foreign imports.
Paytm: The company announced to cut the salaries of its non-executive independent directors, as it looks to save costs amid widening losses. Its independent board members will earn a maximum annual compensation of up to Rs 48 lakh ($57,229), the company said in an exchange filing.
Kalyan Jewellers: Foreign investor Highdell Investment will sell its 2.36 per cent stake in the company to promoter TS Kalyanaraman for Rs 1,300 crore. Kalyanaraman’s stake will increase from 21 per cent to 23.36 per cent, raising the combined shareholding of the promoter and promoter group from 60.59 per cent to 62.95 per cent.
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India Grid Trust: Sponsor Esoteric II Pte plans to sell a 17.32 per cent stake through an offer for sale (OFS) on August 22-23, 2024. The OFS includes a base offer of 9.66 per cent and an oversubscription of 7.66 per cent. The floor price for the offer is set at Rs 132 per share, with non-retail investors participating on August 22 and retail investors on August 23.
