Foxconn Tie-Up Buzz Lifts Adani Enterprises Shares

Adani Enterprises shares jumped as much as 9.1 per cent on Wednesday on speculation that the company will form a joint venture with Taiwan-based Foxconn for investment in India. Foxconn is the world's largest contract maker of electronic products and counts Apple, Blackberry, Xiaomi and Amazon among clients.

"We are at the discussion stage only and have not signed any agreement which requires disclosure under Clause 36 of the Listing Agreement." Adani Enterprises said in a statement to the Bombay Stock Exchange.

Traders attributed the buzz of a tie-up between Adani Enterprises and Foxconn to the latter's confirmation on Tuesday about investment in India.

Foxconn founder and chairman Terry Gou said that he was looking at India with a more than ten years timeframe in mind, but had not firmed up investment figures yet. Mr Gou told Reuters in May he aims to develop 10-12 facilities in India, including factories and data centres, by 2020.

As of 11.03 a.m., Adani Enterprises shares traded 7.5 per cent higher at Rs 101.45, outperforming the broader Sensex and Nifty, which traded with 0.7 per cent gains.

Nestle India Soars 10% as FSSAI-Approved Lab Finds Maggi Noodles Safe

Nestle India shares jumped as much as 10 per cent on Wednesday after a Food Safety Standards Authority of India-approved laboratory found Maggi noodles to be in compliance with the country's food safety standards.

The development is a big positive for Nestle India and is likely to pave the way for the return of the noodles brand back in the markets, analysts said. Nestle had to withdraw all varieties of the popular noodles in June amid country-wide scrutiny on Maggi for high content of monosodium glutamate (a taste enhancer) and lead in some samples.

The FSSAI later banned the snack, ruling it "unsafe and hazardous". Nestle had challenged the decision in the Bombay High Court, which has concluded hearing. A judgement is expected at a later date.

The controversy over Maggi noodles has weighed on Nestle's financial performance; the company slipped to a second-quarter loss as sales fell 20 per cent because of the withdrawal of Maggi noodles from domestic markets. Nestle also reported one-time loss of Rs 452 crore in the quarter.

Maggi used to contribute around 22-25 per cent to the company's topline and 30 per cent to its company's profitability, according to Kotak Institutional Equities.

"Nestle India is making all efforts and will continue to engage with authorities to bring Maggi Noodles back on the shelves," managing director designate Suresh Narayanan had said last month.

As of 09.45 a.m., Nestle India shares traded 6.6 per cent higher at Rs 6,770 and outperformed the broader markets, which traded with 0.7 per cent gains.        

Steel Stocks Extend Rally on Reports of Import Duty Hike

Steel manufacturers rallied for a second day on reports that the finance ministry may increase import duty on long and flat steel products to protect the interest of domestic producers.

Tata Steel jumped over 3 per cent on Wednesday following yesterday's 3.4 per cent up move. State-run SAIL jumped around 5 per cent adding to Tuesday's gain of 4.5 per cent, while JSW Steel advanced around 2.5 per cent, taking its two-day gains to around 8 per cent.

According to media reports, the government may increase import duty to 12.5 per cent to 13 per cent from current 10 per cent on flat steel products. This would help curb steel imports into India and will help domestic steel producers, analysts said. The government had last increased import duty on flat steel from 7.5 per cent to 10 per cent in June.

Shares of steel companies have underperformed the broader indices in last one year due to falling demand and weak prices.

Stock Talk: Monal Desai on Bharti Airtel, HUL, Tata Motors

Stock talk:

Tata Motors: It has been underperforming drastically, but Rs 370-375 is a very good support. For a quick trade, Rs 405 is the first target for Tata Motors. Investors can buy the stock around these levels with a stop below Rs 370.

Bharti Airtel is the only stock in the telecom space which is in a good trading range. Rs 405-407 is a good buying opportunity. Post Rs 435 is a selling opportunity.

ITC is showing some decent strength. Rs 335 is the resistance area. I wouldn't be a buyer at Rs 325-328. But, Rs 310-315 would be a decent entry point.

HUL: Not too bullish at current levels of Rs 904-905; there is limited room for upside. Around Rs 880, I would be more comfortable to buy the stock.

BHEL is consolidating around Rs 275-280. It qualifies as a buy. The stock can witness some resistance around Rs 290-291, post which it can see a huge up move.        

Gold Near Multi-Year Low as Fed's Lockhart Supports September Rate Hike

Manila: Gold steadied not far from a 5-1/2-year low early on Wednesday after comments from a Federal Reserve official backed investor expectations that the U.S. central bank would hike interest rates as early as next month.

Spot gold was little changed at $1,086.35 an ounce by 0037 GMT. Bullion has stayed largely below $1,100 since breaching that key support level in a late July rout that pulled the metal to as low as $1,077, its weakest since February 2010.

U.S. gold for delivery in December slipped 0.4 percent to $1,086.20 an ounce.

Atlanta Federal Reserve President Dennis Lockhart has said it would take "significant deterioration" in the U.S. economy for him to not support a rate hike in September, according to the Wall Street Journal.

Gold, an asset that does not earn interest, has taken a hit given rising risks of a U.S. rate hike. The Fed looks intent on lifting rates this year for the first time since 2006 as the U.S. economy strengthens, particularly its labour market.

New orders for U.S. factory goods rebounded strongly in June on robust demand for transportation equipment and other goods, a hopeful sign for the struggling manufacturing sector.

Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped further on Tuesday to 21.56 million ounces, the lowest since September 2008.

Gold sales at the Perth Mint climbed to a nine-month high in July after a slide in prices of the precious metal to their lowest since 2010 drew buyers.

Asia Stocks Mostly Lower Tracking Fall in US Markets

Tokyo stocks opened lower on Wednesday, despite positive earnings reports and a weaker yen, as US shares slid on another big decline from Apple.

The Nikkei 225 index at the Tokyo Stock Exchange fell 0.15 per cent, or 30.21 points, to 20,490.15 at the start.

US stocks ended lower Tuesday following a mixed batch of earnings reports and a fall by Apple of 3.2 per cent, leaving it down more than 12 per cent since its July 21 earnings release.

The Dow Jones Industrial Average dropped 0.27 per cent.

The broad-based S&P 500 fell 0.22 per cent, while the tech-rich Nasdaq Composite Index slid 0.19 per cent.

In Tokyo Toyota, which said Tuesday its net profit for the three months to June jumped 10 per cent to $5.2 billion, fell 2.53 per cent to 7,915 yen in the first few minutes of trading.

In Tokyo forex trade, the dollar was at 124.32 yen early Wednesday, up from 123.93 yen early Tuesday.

The greenback traded at 124.36 yen in New York late Tuesday.

A weak yen is positive for Japanese exporters as it makes them more competitive abroad and increases profits when repatriated.

The euro was at $1.0885 and 135.29 yen compared with $1.0882 and 135.32 yen in US trade.

Hong Kong stocks opened slightly higher Wednesday, rising 0.17 per cent to defy a lower finish on Wall Street and a slide in Tokyo's opening exchanges.

The city's benchmark Hang Seng Index added 42.3 points to 24,448.42.

Chinese shares were slightly lower on Wednesday morning, as investors took profits after strong gains the previous day sparked by new restrictions on short-selling, dealers said.

The benchmark Shanghai Composite Index edged down 0.29 per cent, or 10.89 points, to 3,745.65.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 0.10 per cent, or 2.17 points, to 2,148.78.

Sensex Jumps Over 150 Points, Nifty Moves Above 8,550

9:25 a.m.: The Sensex jumped over 200 points in the opening deals to hit high of 28,290 and the Nifty advanced above its crucial psychological level of 8,550 tracking buying across the board.

Buying was visible across sectors. Metal stocks were on the buyers' radar. The BSE metal index advanced 1.6 per cent. IT, FMCG, realty, capital goods and power stocks were also witnessing buying interest.

9:12 a.m.: Market analyst Rajat Bose recommends buy on Voltas with stop loss at Rs 314 for target of Rs 330-332

9:08 a.m.: The Sensex jumps 66 points to 28,138 and Nifty advances 32 points to 8,549 levels in the pre-market session.

9:05 a.m.: Nifty is likely to trade in a range between 8,550-8,575 on the higher side while on the downside Nifty has support at 8,450, says market analyst Rajat Bose.

9:00 a.m.: Rupee opens lower at 63.90 per dollar against Tuesday's close of 63.75.

8:15 a.m.: Below are the stocks which will be in focus today:

Bharti Airtel: Bharti Airtel is likely to witness a positive opening in trades today after the company post the market hours reported that its net profit jumped 40 per cent to Rs 1,554 crore compared to Rs 1,109 crore during the same period last financial year.

The results were better than what the analysts had anticipated. Analysts on average expected the company, which operates in 20 countries across Asia and Africa, to post earnings of Rs 1,355 crore, according to Thomson Reuters data.

Shares of Adani group will be in focus today after Australia's Federal court on Wednesday overturned government environmental approval for the Carmichael coal mine under construction in the Australian outback by Indian conglomerate Adani Mining.

Hexaware Technologies: Hexaware Technologies posted better than expected Q1 numbers post the market hours yesterday. The company's revenues exceeded expectations as USD revenues jumped 5.6 per cent. BPO business grew at 14.9 per cent (QoQ) and IMS saw a growth of 17.4 per cent sequentially.

Nestle: Nestle will be in focus today as FSSAI approved lab found Maggi in compliance with safety standards. The lab tested five samples sent by Goa FDA.

Tata Steel: According to Reuters, Tata Steel has spun out its long products unit making items such as plates, sections and wire rods into a standalone business to better pursue strategic options, after the reported withdrawal of Klesch Group from talks to buy the division.

Torrent Power: Torrent Power's first quarter income came in at Rs 3,063.11 crore compared to Rs 2,629 crore. Its net profit jumped over 100 per cent to Rs 173.4 crore from Rs 86.2 crore.

JK Tyres: JK Tyres sales came in at Rs 1,760 crore compared to Rs 1,854 crore. While, its net profit jumped 113 per cent to Rs 118.12 crore from Rs 55.4 crore.

7:55 a.m.: The Sensex and Nifty are likely to witness flat opening in trades today tracking subdued of Nifty futures on the Singapore Stock Exchange. The Nifty on the Singapore Exchange also known as the SGX Nifty was up 0.13 per cent or 11 points at 8,547.

Meanwhile, other Asian markets were trading mostly higher. The Nikkei was up 0.8 per cent, Hang Seng advanced 0.6 per cent while Shanghai Composite declined 0.5 per cent.

Overnight, Wall Street ended lower on Tuesday for a third straight session as investors worried about a rise in interest rates while Apple's shares hit their lowest in over six months.

The iPhone maker's shares fell 3.21 per cent to $114.64, firmly below their 200-day daily moving average, a key technical level closely watched by traders. The stock was the biggest drag on the three major U.S. indexes.

The Dow Jones industrial average fell 0.27 per cent to end at 17,550.69 and the S&P 500 lost 0.22 per cent to 2,093.32. The Nasdaq Composite dropped 0.19 per cent finish at 5,105.55.