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Share Market Closing Note | Indian Stock Market Trading View For 28 Sept,2022

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 Share Market Closing Note

The bear-party, which started with the US Federal Reserve (US Fed) hiking rates by 75 basis points last week, continued for a sixth straight day on Dalal Street on Wednesday. The S&P BSE Sensex fell 509 points to close at 56,598, while the Nifty50 ended 149 points lower at 16,859. Both the frontline indices fell 0.89 per cent each.Share Market Closing Bell! Sensex, Nifty end on a positive note | Zee  Business

Axis Bank, ITC, Reliance Industries, HDFC twins, Bajaj Finserv, IndusInd Bank, Tata Steel, and SBI were the top large-cap losers, while Sun Pharma, Power Grid, Asian Paints, Dr Reddys Labs, M&M, and Tech M climbed on the bourses. 

In the broader markets, the BSE MidCap, and SmallCap indices lost 0.4 per cent each. Among sectors, the Nifty Metal, and PSU Bank indices dipped 2 per cent each, while the Nifty Pharma index gained 0.6 per cent.

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Topic :- Time:3.10 PM

Nifty spot close above 16860 level will result in some further upmove in coming sessions and if it closes below above mentioned level then some sluggish movement can be seen. Avoid open positions for tomorrow due to F&O expiry.

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Topic :- Time:2.30 PM
Just In:
Saudi Arabias crown prince Mohammed bin Salman named prime minister.

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Topic :- Time:2.00 PM

Nifty is highly rangebound and is likely to remain volatile in a range. Nifty spot if manages to trade and sustain above 16700 level then expect some upmove in the market and if it breaks and trade below 16920 level then some decline can follow.

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Topic :- Time:1.00 PM

Nifty spot if manages to trade and sustain above 17020 level then expect some upmove in the market and if it breaks and trade below 16960 level then some decline can be seen. As nifty is approaching expiry so trade in limited quantity.

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Topic :- Time:12.00 PM

News Wrap Up:
1. Sensex, Nifty50 turn flat; Pharma, Auto stocks shine
2. Delhi HC grants bail to Ramkrishna, Subramanian in NSE co-location case
3. SEC fines Oracle $23 mn for bribing officials in India, Turkey, and UAE
4. Rupee hits new low, inches towards 82 per dollar on hawkish US Fed
5. Telecom may be first strategic sector to be picked up for privatisation
6. India rules out tax policy changes for inclusion in global indices
7. JSW Energy plans to raise $30.60 million through 3-year bonds
8. Torrent Pharma to acquire Curatio Healthcare for Rs 2,000 cr; stock down 6%

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Topic :- Stocks under F&O ban on NSE

1. Vodafone Idea
2. Zee Entertainment Enterprises

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Topic :- Stocks in News

Mahindra CIE Automotive: Mahindra & Mahindra has sold 82,42,444 shares or 2.173 percent shareholding in associate company Mahindra CIE Automotive. The sale has been executed through the bulk deal window at a gross price of Rs 285 per share. After the sale, the shareholding of the company in Mahindra CIE has come down from 11.427 percent to 9.254 percent. Participaciones Internacionales Autometal Dossociedad Limitada acquired 87.20 lakh shares in Mahindra CIE at an average price of Rs 284.88 per share.

H G Infra Engineering: Subsidiary H G Khammam Devarapalle Pkg-1 Private Limited has received financial closure for Greenfield highway project in Telangana, from the National Highways Authority of India.

Bharat Heavy Electrical: The company has received an order for setting up the 2x660 MW Talcher thermal power project Stage-III on EPC (engineering, procurement & construction) basis from NTPC.

Motherson Sumi Wiring India: The company said the board of directors will meet on September 30 to consider a proposal for the issuance of bonus shares to the equity shareholders of the company.

Supriya Lifescience: The board has appointed Rajeev Kumar Jain as Chief Executive Officer and Key Managerial Personnel of the company. Rajeev will be joining as CEO on October 3, 2022, to take Supriya on the next phase of its growth journey. Shireesh Ambhaikar has resigned as Chief Executive Officer of the company citing personal reasons.

GOCL Corporation: The company has completed the sale of the balance 12.25 acres of land for Rs 125.11 crore. Earlier it had sold 32 acres out of 44.25 acres of land.

Bharat Petroleum Corporation: Life Insurance Corporation of India has acquired an additional 2.01 percent stake in the company via open market transactions. With this, its shareholding in the company increased to 9.04 percent, up from 7.03 percent earlier.

Torrent Pharmaceuticals: The company has acquired Curatio Healthcare, which has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, for Rs 2,000 crore. It has entered into definitive agreements to acquire 100 percent in Curatio which reported revenue for FY21-22 at Rs 224 crore.

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Topic :- Investors Meetings on September 28

Shoppers Stop: Officials of the company will be meeting representatives of Invesco Asset Management.

Tech Mahindra: Officials of the company will attend Equirus Virtual Annual Conference.

Blue Star: Officials of the company will meet Aditya Birla Sun Life AMC.

Blue Dart: Officials of the company will meet ICICI Prudential Asset Management, Motilal Oswal AMC � PMS, L&T Mutual Fund, Helios Capital, Mirae Asset Management (India), and SBI Funds Management.

Alkem Laboratories: Officials of the company will meet Nine Rivers Capital.

Polycab India: Officials of the company will meet Government of Singapore Investment Corporation, M&G Group, Somerset Capital, Helios Capital, and Nikko Asset Management in Singapore.
Greaves Cotton: Officials of the company will interact with Pine Bridge.
ICICI Bank: Officials of the bank will interact with Jefferies Global Fund Managers.
Sapphire Foods India: Officials of the company will interact with Sundaram Mutual Fund, HDFC Securities, Bajaj Allianz Life Insurance, IIFL Holdings, and Chrys Capital.
CarTrade Tech: Officials of the company will attend Kotak PCG Virtual Conference.
Bharat Forge: Officials of the company will meet Van Eck Associates Corporation.
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Topic :- Nifty Opening Note

Nifty to turn volatile as the day progresses. Trade as per market trend.
Nifty spot if manages to trade and sustain above 17080 level then expect some upmove in the market and if it breaks and trade below 16940 level then some decline can be seen in the Nifty.
Please note this is just opening view and should not be considered as the view for the whole day.

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India’s potash demand languishes as world reels from high prices

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Potash consumption will probably fall to 3 million tons in the year through March 2023 from 5 million a year earlier, according to P.S. Gahlaut, managing director of Indian Potash Ltd.,India's potash demand languishes as world reels from high prices

 the country’s top importer of the crop nutrient. Farmers have been using less of it to grow crops like rice, wheat and sugar.India, one of the world’s biggest potash importers, is facing demand destruction due to high prices and the loss of critical supplies from Belarus and Russia.

Potash consumption will probably fall to 3 million tons in the year through March 2023 from 5 million a year earlier, according to P.S. Gahlaut, managing director of Indian Potash Ltd., the country’s top importer of the crop nutrient. Farmers have been using less of it to grow crops like rice, wheat and sugar.

While prices have cooled lately, they remain elevated

Potash is a fertilizer that helps plants withstand drought and diseases. Prices soared earlier this year after the invasion of Ukraine, with many shippers, banks and insurers avoiding trade with Russia even though fertilizers are not directly targeted by sanctions. The industry is also contending with US and European Union sanctions on potash sales from Belarus, as well as China’s move to restrict exports to protect its domestic market.

Indian Potash has agreed to buy the crop nutrient from Israel, Canada, Jordan and Germany this year at $590 a ton including freight charges, up from around $445 last year. Supplies from Russia and Belarus, two of the three biggest exporters, have come to a standstill because of payment issues, Gahlaut said.

Our potash availability is comfortable,” Gahlaut said in an interview last week. “The sad part is potash demand has gone down because of high prices.”

Indian Potash will begin annual price talks with suppliers including Russia’s Uralkali PJSC, Israel’s ICL Group Ltd., Arab Potash Co. in Jordan and Canada’s Canpotex Ltd. in November, he added. “People are giving us visits but we’re in no hurry to finalize the price.”

Russia and Belarus Account for 40% of Potash Trade | World exports of potash, 2020

Gahlaut expects global fertilizer prices to decline by 10% to 12% next year due to high stockpiles. Prices will fall further in 2024 as supplies improve, he said.

In India, some farmers have skipped potash application but that’s not having a major impact on crop yields -- at least for now -- as there’s available supply in the soil. It may start affecting agricultural production if they skip potash use continuously for two or three planting seasons, Gahlaut said.

India’s potash consumption fell by about 50% in five months through August from a year earlier, while demand for NPK fertilizers -- the three main nutrients in commercial fertilizers that represent nitrogen, phosphorus and potassium -- has shrunk 20% over the same period, he estimates.

Demand will likely stay flat this winter sowing season unless the government increases the subsidies for fertilizer companies, Gahlaut said. The authorities have said they won’t allow those firms to increase their prices. India is set to announce subsidies soon for the winter season.

“We hope the government is going to increase subsidies. It should be available at an affordable price to boost consumption,” Gahlaut said.

Real Estate | Construction sites cannot remain death traps for workers

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Safety laws are ignored, except in large organisations, and Indian workplaces remain the most unsafe in the worldReal Estate | Construction sites cannot remain death traps for workers

Indian construction workforce constitutes 7.5 percent of the global workforce, but accounts for 16.5 percent of the fatal global occupational accidents. (PTI/File image/Representative)

In mid-September, two workers fell to their death while working on a lift installation at a construction site. Earlier, seven workers were killed when a scaffolding fell at a construction site in Ahmedabad, Gujarat. The Gurugram Police released a report that at least 20 construction workers in the city have lost their lives in the city till July this year. Similar accidents have been reported from Chennai as well. The common thread in all these is the lack of safety measures that might have prevented these needless accidents.

global study in 2015 found that the Indian construction workforce constitutes 7.5 percent of the global workforce, but accounts for 16.5 percent of the fatal global occupational accidents. It also found that about 40 percent of the fatalities were due to falls, over 8 percent were struck by objects, and about 8.5 percent by electrocution. Clearly, a little precaution could have reduced the fatalities.

Subsequently, safety became a very important chapter of the National Building Code (NBC). NBC Vice Chairman V Suresh told this author that the NBC 2016 provisions were built around structural, health, fire, construction, public, and life safety. The NBC has a very comprehensive coverage in Part 2 (Administration on Regulatory Responsibilities), and Part 7 (Construction Management Practices and Safety ...for Construction and Demolition).

Why then do construction sites in India remain one of the riskiest in the world?

Construction activities have grown by 80 percent in the past four years; from Rs 7.8 crore in 2013 to Rs 14,000 crore in 2022. With an accident rate of 165 out of every 1,000 workers in India injured, it is important to address this issue urgently.

Large companies are increasingly more or less compliant. Companies such as Hiranandani, L&T, Tata Projects, Gammon India, Hindustan Construction, Simplex, and Shapoorji Pallonji, are all Integrated Management System (IMS) certified. All workers have to wear all personal protective equipment (PPE), such as helmet, shoes, body harness, etc. They follow safety issues, and construction worker concerns force organisations to train them for safety, and quality control issues.

This also comes with the mandate of enforcement staff, a cost that is not factored into small and medium projects. As a result, the cost of compliance becomes very expensive for smaller companies. The supervisory staff to ensure safety have to remain vigilant, and maintain logistics records, on the fly. While a good reputation is a plus for large clients, for small and medium developers, it is a wasteful and an impractical effort, when the deciding factor is cost.

Residential construction accounts for over 55 percent of India’s construction profile. A very large part of this is un-engineered or is supervised by masons-turned-contractors. They rely on unskilled migrant labour that moves from job to job. Per-day productivity is the criterion of selection here, and the harness actually reduces their productivity. Also, when they leave one site and go to the next, there is no authority that inspects security on work sites. So workers themselves don't often opt for safety equipment.

The NBC has laid down safety in excavation, with the right level of supervision in all elements of foundation construction. All safety provisions for construction processes, and the right physical barriers at construction sites: scaffolding and underpinning, safety of construction workers with PPE, and work area protection, as well as health and hygiene factors and facilities for construction workers are clearly spelt out. The special requirements for foundation and basement construction with right encasement protection from landslide, etc. are covered. Working at heights with inclement weather for high winds and rainfall, and slippery work front, safe operation of construction equipment, and machineries, have also been covered.

However, these are precisely the roles where accidents occur.

Many building by-laws have incorporated the provisions of the NBC, which are guidance documents in local building rules and development control rules. But the local authorities under whose jurisdiction the enforcement falls, are under-staffed, with construction worker-safety not on high priority. That said, there are some cases of enforcement. After an accident in Porur in Chennai in 2014, all those responsible for the project were arrested for criminal negligence.

But these are few and far between. Most site owners pay the families of injured/deceased workers a compensation to settle the problem. The rural migrant families are not aware of their rights nor are they powerful enough to fight the system. State governments offer compensation to the families too. But there are few efforts at ongoing supervision and training to ensure that these fatalities are reduced. With migrant manpower freely available, and municipal governance in construction sites still at a nascent stage, things have not hit a critical level for the industry yet. Till then, worker safety will remain an afterthought in majority of India’s construction sites.


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