Moody's upgrades Tata Steel to investment grade with Baa3 issuer rating; outlook stable: Daily Market Update- Equity 26 Sep 2023 | Globe Capital Market LTD.
Moody’s upgrades Tata Steel to investment grade with Baa3 issuer rating; outlook stable: Daily Market Update- Equity 26 Sep 2023

Moody's Investors Service assigned a Baa3 from Ba1 long-term issuer rating to Tata Steel and changed its outlook to ‘stable’ from ‘positive’. The upgrade reflects expectation of the continued strength in Tata Steel's credit profile due to the company's solid market position in India. Moody's said that its rating reflects the company's large-scale globally cost-competitive, vertically integrated steel operations in India. The rating agency also said that the new rating is on account of the sustained improvement in Tata Steel's European operations.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.13% to 0.45%
  • European equity markets ended on negative note.
  • Asian equity markets are also trading on a negative note.
  • GIFT Nifty is down by 74 points (as on 8:30AM), Nifty futures likely to open around 19650 levels.


News highlights from across the globe

  • Asian shares opened with losses as concerns about China’s property sector re-emerge. Wall Street closed higher and a US bond sell-off extended into a fourth week, while a gauge of dollar strength hit its highest level this year, according to Bloomberg report.
  • The S&P 500 snapped a four-day slide, rising as traders returned to their desks following the worst weekly selloff on Wall Street since March. The Nasdaq 100 ended the day higher, with Inc. gaining.
  • Brent Crude prices slipped below $93.29 a barrel and the yield on the 10-year U.S. bond was trading at 4.53%.


Important news updates from the domestic front

  • Reliance Industries has issued a postal ballot notice to seek shareholders’ approval to appoint Isha Ambani, Anant Ambani, and Akash Ambani as non-executive directors. The voting will be held between Sept. 27 and Oct. 26.
  • Tata Steel: Moody’s raised the steelmaker’s long-term rating to Baa3 from Ba1 and outlook to stable from positive. It said the upgrade reflects expectations of continued strength in the company’s credit profile and considerable deleveraging through gross debt reduction. The rating agency expects Tata Steel to maintain conservative financial policies with well-balanced capital allocation and financial metrics.
  • Mahindra & Mahindra: Canada’s Ontario will buy a 20% stake in company unit Mahindra Teqo for Rs 35 crore. The stake sale will be completed by Jan. 3, 2024.
  • Wipro sold a 14.02-acre land parcel and building in Chennai to Casagrand Bizpark for Rs 266.38 crore.
  • HDFC AMC will invest Rs 25 crore in unit HDFC AMC International to help it meet the net worth requirements prescribed for Registered Fund Management Entity (Retail) under IFSC rules.
  • Indian Hotels will invest $11.5 as equity in Dutch subsidiary Ihoco BV to help it repay debt and for other operations.
  • Century Textiles: Unit Birla Estates has successfully launched Phase 1 of Birla Trimaya in Bengaluru’s Devanahalli. The project is expected to have a revenue potential of Rs 3000 crore.
  • Sheela Foam plans to raise up to Rs 1,200 crore via QIP. It will allocate 1.11 crore shares at Rs 1,078 apiece.
  • DB Realty will acquire shares in Bamboo Hotel Global Centre, Goan Hotels & Realty, and BD And P Hotels for more than Rs 2,300 crore, with the intent to enter the hospitality business.


Nifty Overview & Outlook

The benchmark Nifty index ended on a flat note at 19674 levels after highly volatile trading session.

Mid cap index outperform the benchmark as it was up nearly 1% while Small cap index ended on a flat to positive note.

Performance on the sectoral front was mix. Among sector, Nifty Realty index led the advances, gained over 1.5% followed by Consumer Durable, Financial Services and Pvt Bank that settled higher around 0.50% each. On the other hand, Nifty IT and Media were the worst performer down over 0.5% each.

Technically, Nifty index is trading around the immediate support of 19600 levels and resistance is placed around 19800 levels. The crossover and sustenance above 19800 level might take it towards 20000 level in immediate near term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Banknifty and Finnifty futures with increase in open interest by 6.7% and 2.8% respectively. Nifty Future remained almost unchanged on the price front and open interest increased by 3.3%.

On sectoral front, long buildup was seen in Automobile, Cement, Finance, Power, Technology and Textile stocks whereas some short buildup was seen in Media and Oil & Gas stocks. Short covering was seen in Chemical, Infrastructure and Metal stocks.

On options front, both call writing and put writing was seen at multiple strikes and maximum positions are at 19000 PE and 19800 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 2333 Cr in the cash segment, bought stocks futures worth Rs 2339 Cr and sold index future worth Rs 1466 Cr. DIIs were net buyer in the cash segment to the tune of Rs 1579 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19890-20000; Supports 19550-19430

Banknifty – Resistances 45200-45350; Supports 44330-44100

Finnifty – Resistances 20000-20150; Supports 19620-19500


F&O stocks in ban today:



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