News Headlines from Business News Agencies:

Business Standard

• Employment in India registered V-shaped recovery post-pandemic: Former CEA
• Banks, finance companies expect robust festive season credit offtake
• NHAI, GAIL join forces to simplify infrastructure expansion process
• Titan buys additional 27.1% stake in CaratLane for Rs 4,621 crore
• Jio Financial Services to list on Monday
• RBI prohibits lenders from compounding penal interest on loan defaults
• Corporate affairs ministry assessing need to ramp up bench strength of NCLT
• Centre rolls out Rs 5,000 crore RLI scheme for pharma, med-tech sectors
• Rajasthan govt plans to allocate Rs 5,200 cr to strengthen road network
• Corporate India's deal activity jumps 58% to $3.1 bn in Jul: Report
• Sterlite Copper keeps all doors open for the Thoothukudi plant restart
• French carmaker Renault looks to drive electric car into India next year
• India needs major reforms in food supply management: RBI researchers

Economic Times

• Financial services secretary holds review meeting with PSB heads on PM Vishwakarma Scheme
• Coal India plans policy for financial assistance to future mountaineers
• Murugappa family agrees on terms of family arrangement with the family branch of late M V Murugappan
• Foxconn's logistics unit Jusda opens new office in Tamil Nadu
• RBI appoints P R Seshadri as South Indian Bank MD & CEO
• CreditAccess Grameen to raise up to Rs 1000 crore via NCDs
• OCEN 4.0 unveiled to facilitate short-tenor loans to MSMEs
• India headed for driest August in over 100 years, summer crops at risk
• Pfaudler sells 13.6% stake in GMM Pfaudler; ChrysCapital among buyers
• RBI expected to hold policy rate again at next review meeting: Crisil
• Mahindra to inspect over 100,000 XUVs for potential wiring issue
• Jalan Kalrock Consortium seeks more time to pay Rs 350 cr to Jet Airways’ lenders
• TresVista aims to achieve $50 million milestone in current financial year
• M&M gets Rs 14.3 lakh penalty notice for incorrect input tax credit claim by erstwhile arm

Mint

• Moody's affirms India's BAA3 rating, maintains ‘stable’ outlook on economy
• Sebi plans to bring follow-on offer rules for REITs, InvITs
• Gujarat Gas increases industrial gas rates to ₹40.83/scm, says report
• NLC India signs pact with Rajasthan govt for 300 MW solar power supply
• Route Mobile to partner with Vodafone Idea on A2P SMS monetisation through AI
• Pyramid Technoplast IPO: Issue subscribed 1.61 times on day 1
• Retail leasing in Delhi-NCR up by 65% in H1 2023: CBRE
• Coworking firm BHIVE to launch ₹400 crore alternative investment fund
• Ashok Leyland to issue corporate guarantee of ₹870 crore for two subsidiaries
• India rolls out green hydrogen production standards
• Centre seeks bids to survey wind energy sites in Tamil Nadu
• Debt quality in financial sector declined marginally in July: Report
• Global wealth management firm UBS Group AG to expand team in India.

*INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 21-08-2023 :*

*FIIS F & O : RS. CRS. :*

*TOTAL NET SELL : -6450* 😭

*INDEX FUT. : +211*

*INDEX OPT. : +2077*

*STOCK FUT. : -8580*

*STOCK OPT. : -159*

*INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 21-AUG-2023 :*

*FIIS : SELL -1,901 (8,075-9,976)* 😥

*DIIS : BUY +626 (6,157-5,531)* 😊

*BSE SENSEX : +267 (65,216)🔼*

*NSE NIFTY : +83 (19,393)*🔼

*BSE MIDCAP. : +263 (30,528)*🔼

*BSE SMLCAP. : +252 (35,535)*🔼

*B. CRUDE : $ 84.91* 🔼 😩

*GOLD: $1888=INR 57,900(10gr)* 🔽 ☺️

*SILVER : RS. 73,600 (kg) (5pm)* 🔽 ☺️

*FOREX : RS. $ 83.10 ↔️ 😳*

*7.26% GOI '33 : 7.2208%(100.26)🔼☺️*

*7.18% NEW '33 : 7.1839%(99.97)🔽🙂*

*7.41% GOI '36 : 7.3014% (100.90)🔼☺️*

*SEC. IN F&O BAN FOR, 22-Aug-23 :*

*1. CHAMBLFERT 2. GNFC 3. DELTACORP 4. IBULHSGFIN 5. INDIACEM 6. SAIL 7. METROPOLIS 8. ZEEL 9. PNB 10. HINDCOPPER 11. MANAPPURAM*


*ADDITION : METROPOLIS*
*DELETION : GRANULES*

Mkt. Updates :

*GIFT Nifty -19 pts (19380) from last trade 19399 ,*

Nikkei +211 pts ,
Hangseng +19 pts ,


Dow -36.97 pts ,Nsdq +206.81 pts, S&P +30.06 pts , Bovespa -979 pts , Ftse -4 pts , Dax +29 pts , Cac +33 pts , Crude @ $80.83 brl (+0.11), Brent @ $84.46 brl (-0.00) , Gold @ 1924.40 (+1.40), Silver @ $23.38 (+0.04), Euro @ $1.0897, JPY @ $146.20, INR @ 83.085


*US GOVT. 10-YR YIELD : 4.35%*


*Today's Corporate Action, 22 Aug Ex Date :*

ANZEN
Income Distribution (InvIT) 
CHEMFABALKA
Final Dividend - Rs. - 1.2500
DREAMFOLKS
Interim Dividend - Rs. - 0.5000
ISEC
Final Dividend - Rs. - 9.2500
KPIGREEN
Interim Dividend - Rs. - 0.2500
KTKBANK
Final Dividend - Rs. - 5.0000
MNKALCOLTD
Final Dividend - Rs. - 0.0500
MNKCMILTD
Final Dividend - Rs. - 0.0300
MORGANITE
Final Dividend - Rs. - 11.0000
NATCOPHARM
Interim Dividend - Rs. - 7.0000
NHPC
Final Dividend - Rs. - 0.4500
PANAMAPET
Final Dividend - Rs. - 5.0000
SUBROS
Dividend - Rs. - 1.0000
SUNTV
Interim Dividend - Rs. - 6.2500
TYCHE
Dividend - Rs. - 2.0000
VGIL
Bonus issue 1:1  
VRL
Final Dividend - Rs. - 2.0000
ASTRAMICRO
Final Dividend - Rs. - 1.6000


*Today's Board Meetings, 22-Aug-23 :*

CCCL
A.G.M.    
LAL
Issue Of Warrants  
PRERINFRA
General    
TIRUSTA
Increase in Authorised Capital;Preferential Issue of shares
WSIND
General  


*SEC. IN F&O BAN FOR, 22-Aug-23 :*

*1. CHAMBLFERT 2. GNFC 3. DELTACORP 4. IBULHSGFIN 5. INDIACEM 6. SAIL 7. METROPOLIS 8. ZEEL 9. PNB 10. HINDCOPPER 11. MANAPPURAM*

*ADDITION : METROPOLIS*
*DELETION : GRANULES*


*Today's Alert :*

*RBI to Conduct Auction of SDLS BONDS for INR 84.30 Billion*

News Headlines from Business News Agencies:

Business Standard

• Amul India aims to achieve a turnover of Rs 80,000 crore in FY23-24
• Rajasthan govt approves Rs 700 crore for irrigation infrastructure upgrade
• Wipro appoints Brijesh Singh as global head of artificial intelligence
• ADIA-backed IIFL Home Finance raises nearly $100 million from IFC
• Bharat Forge secures order worth Rs 850 crore
• SoftBank sells a part of its stake in IPO-bound FirstCry for Rs 435 crore
• KEC International secured multiple orders worth Rs 1,007 cr
• Byju's top executive Cherian Thomas quits, joins Impending Inc as CEO
• RBI nudges local banks to settle UAE trades in rupee, dirham: Report
• WeWork India Q1 revenue up 40% to Rs 400 cr on rising demand: CEO Virwani
• Tata Sons seek partnerships for UK battery plant to supply JLR Evs
• Wockhardt shareholders reject proposal to raise Rs 1,600 cr from promotor
• Knowledge Marine & Engineering Works unit gets letter of intent worth ₹342.06 cr from four sand buyers in Bahrain

Economic Times

• IREDA targets Rs 4,350 crore revenues in FY24; Rs 5,220 crore in FY25
• Canara Bank launches UPI Interoperable Digital Rupee mobile application
• Telecom sector AGR up 2.53% on-qtr in Q4FY23, Jio gains maximum revenue: Trai
• Mahindra Manulife Mutual Fund launches Mahindra Manulife Business Cycle Fund
• Indel Money Q1 Results: Profit jumps 63% QoQ to Rs 21 crore
• Centre's stand sought on plea against inclusion of CAs under money laundering law
• Jet Airways’ lenders agree to give Jalan Kalrock Consortium extension till Sep 30 to make payments
• HonorTech to relaunch Honor brand of phones, to invest Rs 1,000 cr
• Global logistics major CEVA to buy Warburg’s over 90% stake in Stellar Value Chain
• Operations begin at Rs 700-crore new terminal of Port Blair airport
• Govt funding key to digitalisation, say 80% of SMEs: Survey
• ABB India bags order to automate Reliance Life Science's biopharmaceutical facilities

Mint

• Tata Power Renewable inks 9MWp solar deal with Tata Motors' Pantnagar plant
• AP Moller-Maersk to expand India distribution network with more than 500 Evs
• G20 Pandemic Fund grants $25 mn for animal health system in India
• Unveil Consumer Insights to Accelerate B2B Sales with ASK1
• India's jet fuel demand to rebound to 2019 levels by Q1 2024: S&P Global
• PFC inks $1.28 mn loan pact with JBIC for waste-to-energy project in Karnataka
• Hikal appoints two independent directors amid family feud
• Jio Financials lists at ₹262 per share on NSE and ₹265 per share on BSE
• Yes Bank receives redemption amount of ₹230 cr in Security Receipts Portfolio
• Airport lounge services firm Encalm enters hotel business
• L&T Energy Hydrocarbon bags order in the range of ₹1,000-2,500 cr from Saipem & Clough JV
• Kalyani Strategic Systems secures order of ₹849 cr to supply armoured vehicle chassis

India Daybook Stocks in News

*Welspun Enterprises:* Company acquires remaining 50.10% stake in Michigan Engineers (Positive)

*Union Bank:* Board approves raising up to ₹5,000 cr via Qualified Institutional Placement, floor price at ₹91.10/sh. (Positive)

*Tata Power:* Renewable Energy signs PPA for 9 MWp on campus solar plant with Tata Motors Limited for Pantnagar plant in Uttarakhand (Positive)

*Adani Ent:* Promoter has raised stake to 69.87% from 67.65%, acquired 2.22% from August 7-18 (Positive)

*Sula Vineyards:* Company to concentrate on vineyards outside Bengaluru (Positive)

*Lemon Tree:* Company has signed license agreements for two properties in Bhubaneswar and Kasauli (Positive)

*Brigade:* Company has entered into a sale deed for acquiring 6.54 acres of land parcel in Chennai. (Positive)

*RITES:* Company signed a MoU with NHPC Limited to collaborate on comprehensive Consultancy services for Rail Infrastructure facilities (Positive)

*BHEL:* Company has received an order worth of Rs 4000 crore from Mahan Energen, a unit of Adani Power (Positive)

*BLS International:* BLS International FZE is in process to subscribe 100% share capital of Saudi Arabia-based BLS International Travel & Tourism (Positive)

*Glenmark:* USA reaches antitrust settlement with US Department of Justice, Antitrust Division (DOJ) (Neutral)

*Adani Power:* Company targets 21,110 MW thermal capacity by fiscal 2029. (Neutral)

*Adani Energy Solutions:* To meet investors on Aug 23, Aug 30: Agencies. (Neutral)

*Shriram Properties:* Omega TC Sabre Holdings sold 18 lakh shares at Rs 75.43 apiece. (Neutral)

*Sanghi Industries:* Ambuja Cements has made an open offer to acquire a 26% stake for Rs 767.16 crore. The offer opens on Sept. 29 and closes on Oct. 13. (Neutral)

BHEL bags order worth Rs 4,000 crore from Adani Power subsidiary - https://www.republicworld.com/business-news/india-business/bhel-bags-order-worth-rs-4000-crore-from-adani-power-subsidiary-articleshow.html

YESTERDAY BHEL GOT THIS ORDER FROM ADANI POWER AND TODAY BOTH STOCKS UP 😊

*INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 22-08-2023 :*

*FIIS F & O : RS. CRS. :*

*TOTAL NET BUY : +10614* 😃😃

*INDEX FUT. : -48*

*INDEX OPT. : +10721*

*STOCK FUT. : -116*

*STOCK OPT. : +57*

*SEC. IN F&O BAN FOR, 23-Aug-23 :*

*1. BHEL 2. GNFC 3. DELTACORP 4. IBULHSGFIN 5. INDIACEM 6. SAIL 7. METROPOLIS 8. ZEEL 9. PNB 10. HINDCOPPER 11. MANAPPURAM 12.ESCORTS*

*ADDITION : BHEL, ESCORTS*
*DELETION : CHAMBLFERT*

*INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 22-AUG-2023 :*

*FIIS : SELL -495 (8,854-9,349)* ☺️

*DIIS : BUY +534 (6,027-5,493)* 🙂

*BSE SENSEX : +04 (65,220)🔼*

*NSE NIFTY : +03 (19,396)*🔼

*BSE MIDCAP. : +288 (30,816)*🔼

*BSE SMLCAP. : +315 (35,850)*🔼

*B. CRUDE : $ 84.08* 🔽 😊

*GOLD: $1895=INR 58,270(10gr)* 🔼 🙂

*SILVER : RS. 75,100 (kg) (5pm)* 🔼 😃

*FOREX : RS. $ 82.93 🔼 🙂*

*7.26% GOI '33 : 7.2204%(100.2625)↔️😳*

*7.18% NEW '33 : 7.1881%(99.94)🔼☺️*

*7.41% GOI '36 : 7.2933% (100.97)🔽🙂*

*GIFT Nifty -44 pts (19345) from last trade 19389 ,*


Nikkei +33 pts ,
Hangseng -28 pts ,


Dow -174.86 pts ,Nsdq +8.28 pts, S&P -12.22 pts , Bovespa +1726 pts , Ftse +12 pts , Dax +102 pts , Cac +42 pts , Crude @ $80.35 brl (+0.00), Brent @ $84.03 brl (-0.00) , Gold @ 1927.20 (+1.20), Silver @ $23.495 (+0.04), Euro @ $1.0844, JPY @ $145.73, INR @ 83.045




*Today's Corporate Action*
*23rd Aug Ex Date*




BIRET 
Income Distribution RITES  
CGCL
Final Dividend - Rs. - 0.5000
DHRUV
Interim Dividend  
DSSL
Interim Dividend - Rs. - 0.5000
FOCUS
Bonus issue 4:5  
GCSL
Right Issue of Equity Shares 
HBPOR
Interim Dividend - Rs. - 1.0000
INTLCOMBQ
Dividend - Rs. - 3.0000
MANAPPURAM
Interim Dividend - Rs. - 0.8000
PERMAGN
Final Dividend - Rs. - 1.5000



*Today's Board Meetings*
*23-Aug-23*



 ASHAI
General    
KAMAHOLD
Interim Dividend  
MISHTANN
Right Issue of Equity Shares
NOVATEOR
Increase in Authorised Capital;Issue Of Warrants;A.G.M.
PGHL
Audited Results;Final Dividend
PRESSURS
General    
SHANTAI
General    
SHRAJOI
A.G.M.    
SPRAYKING
General;A.G.M.  
UJJIVAN
Interim Dividend  
VALECHAENG
Quarterly Results  
VANICOM
General;A.G.M.  
ZINEMA
General




*Stock under F&O ban on NSE*
*23-Aug-23*




1 BHEL
2 DELTACORP
3 ESCORTS
4 GNFC
5 HINDCOPPER
6 IBULHSGFIN
7 INDIACEM
8 MANAPPURAM
9 METROPOLIS
10 PNB
11 SAIL
12 ZEEL

ISRO WEBSITE
https://www.isro.gov.in/

YOUTUBE LIVE
https://www.youtube.com/live/DLA_64yz8Ss?feature=share

Facebook
https://facebook.com/ISRO

TATA ELXSI ☺️

SLEEPING BEAUTY ✨

IF PRICE MATTERS FOR YOU LIKE CHEAP N EXPENSIVE THEN THIS IS NOT FOR YOU.

AAPKA SAARTH! AXiTDSHAH @STOCKARTHi
LEARN MARKET WITH US...

*INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 23-08-2023 :*

*FIIS F & O : RS. CRS. :*

*TOTAL NET SELL : -4953* 😭

*INDEX FUT. : +504*

*INDEX OPT. : -6783*

*STOCK FUT. : +1418*

*STOCK OPT. : -92*

*SEC. IN F&O BAN FOR, 24-Aug-23 :*

*1. BHEL 2. GNFC 3. DELTACORP 4. IBULHSGFIN 5. INDIACEM 6. SUNTV 7. METROPOLIS 8. ESCORTS 9. PNB 10. HINDCOPPER 11. MANAPPURAM*

*ADDITION : SUNTV*
*DELETION : SAIL, ZEEL*

*INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 23-AUG-2023 :*

*FIIS : BUY +614 (9,419-8,805)* 😊

*DIIS : BUY +125 (7,229-7,104)* 🙂

*BSE SENSEX : +213 (65,433)🔼*

*NSE NIFTY : +48 (19,444)*🔼

*BSE MIDCAP. : +130 (30,946)*🔼

*BSE SMLCAP. : +216 (36,066)*🔼

*B. CRUDE : $ 83.11* 🔽 😊

*GOLD: $1917=INR 58,570(10gr)* 🔼 🙂

*SILVER : RS. 75,600 (kg) (5pm)* 🔼 🙂

*FOREX : RS. $ 82.69 🔼 😊*

*7.26% GOI '33 : 7.1927%(100.45)🔽😊*

*7.18% NEW '33 : 7.1682%(100.08)🔽🙂*

*7.41% GOI '36 : 7.2587% (101.2625)🔽😊*

Congratulations to ISRO team for the historic success of #Chandrayaan3 mission.
T.me/AlliesFin
Also congratulations to the companies behind the mission:

🚀 MTAR Technologies: Made core parts of the Rocket engines and core pumps of Cryogenic engines required for take-off.

🚀 Larsen & Toubro: Made critical booster segments, did system integration and proof pressure testing for the Chandrayaan at its facility in Powai.

🚀Godrej Aerospace: Supplied hardware liquid propulsion engines and satellite thrusters

🚀 Tata Advanced Systems: Core manufacturer of Chandrayan 3’s Lander

🚀 Hindustan Aeronautics: Worked on development of lander and key mechanical support equipments

🚀 Bharat Electronics - Chandryaan3’s payloads

🚀 BHEL - Supplied 100th battery pack to ISRO for Chandrayaan 3

🚀 Mishra Dhatu Nigam (Midhani): Critical materials such as Cobalt and Nickel base alloys and special steel for various components.

🚀 Centum Electronics: Large component supplier - makes 300-500 electronics parts for each mission

🚀 Walchandnagar Industries: Supplied components for all 48 launches by ISRO till now

🚀Taneja Aerospace: Builds important structural assemblies for HAL and ISRO for their booster rockets.

🚀Electrosteel Castings: Supplied DI Pipes to the Satish Dhawan Space Centre, Sriharikota

Also congratulations to all of us!
A special day in history.
23 Aug 23

Allies Fin Serve
T.me/AlliesFin

🛰 Total Foreign Satellites Launched by India Till Date: 424
T.me/AlliesFin

✈️ Pre-2014 : 35 (8.25%)

🚀 Post-2014 : 389 (91.75%)


💰 ISRO Budget Today: ₹12,500 cr

💰 ISRO Budget in 2013: ₹3,500 cr

A remarkable journey of progress and innovation!

Telegram @AlliesFin

GIFTNifty: 19,493: +62: +0.32%

Today
Listing of New Securities PIRAMAL PHARMA LIMITED
129604598 equity shares of Rs. 10/- each issued at a premium of Rs.71/- on right basis

Last Heard
# Pyramid Technoplast..last heard: 22. IPO px:166…size:153cr
# Aeroflex Inds..last heard 77/80.. IPO dates: 22/8-24/8..IPO size 351cr IPO px:108
# Balaji Speciality Chem.: IPO size 1000cr…
# Vishnu Prakash R Punglia: gmp 51…IPO size: 309 cr…Px: 99/- Dt..24/8 to 28/8
# Bondada Eng.: last heard 44/- IPO size: 42.72cr, IPO px: 75/-
# Ratnaveer Precision Engineering: IPO size: 166 cr, Dt: 4/9-6/9

Other Mainline IPO’s
Tata Tech, EBIXCash

Provisional Cash Rs. In Crs. (23rd Aug.)
FIIs +614 (9,419 – 8,805)
DIIs +125 (7,229 – 7,104)

Sensex: 65,433: +213: +0.33%
Nifty: 19,444: +48: +0.25%
BankNifty: 44,479: +486: +1.10%
NiftyIT: 30,924: +22: +0.07%
MIDCAP: 38,695: +150: +0.39%
Dow: 34,473: +184: +0.54%
S&P: 4,436: +48: +1.10%
Nas: 13,721: +215: +1.59%
Brazil: 118,135: +1,979: +1.70%
Ftse: 7,321: +50: +0.68%
Dax: 15,728: +23: +0.15%
Cac: 7,247: +6: +0.08%
MOEX: 3,146 (-18) (-0.57%)
WTI Oil: $78.59 (-0.94%)
Brnt: $83.02 (-1.2%)
Natural Gas: 2.5 (-2.46%)
Gold: $1948: +1.15%
Silver: $24.71: +0.95%
Copper: $384: +1.29%
Cotton: $85.82:+1.73%
Copper (LME): $8,363: +88: +1.06%
Alluminum (LME): $2,177: +33: +1.54%
Zinc (LME): $2,332: +15: +0.63%
Tin (LME): $26,112: +410: +1.60%
Eur-$: 1.0863: +0.2%
GBP-$: 1.2718 (-0.1%)
Jpy-$: 144.87 (-0.7%)
Re: 82.6925 (-0.29%)
USD-RUB: 94.1443 (-0.05%)
US10yr: 4.19% (-3.06%)
GIND10YR: 7.194 (-0.33%)
$ Index: 103.352 (-0.2%)
US Vix: 15.98 (-5.83%)
India Vix: 11.72 (-0.26%)
BalticDry: 1,194 (-29) (-2.37%)

ADR/GDR
Cogni: +1.25%
Infy: +1.65%
Wit: +2%
IciciBk: +2.97%
HdfcBk: +1.38%
DrRdy: +1.82%
TatSt (-0.36%)
Axis: +3.32%
SBI: +2.79%
RIGD: +2.15%
INDA: +1.52% (IShares MSCI INDIA ETF)
INDY: +1.36% (IShares MSCI INDIA 50 ETF)
EPI: +1.82% (Wisdom Tree India Earning)
PIN: +1.46% (Invesco India Etf)

Stock futures ticked higher on Wednesday, with investors focusing on key second-quarter results from chipmaker Nvidia to gauge whether the AI excitement is more than just hype.

S&P 500 futures climbed 0.5% while Nasdaq 100 futures gained 0.7%. Futures tied to the Dow Jones Industrial Average was little changed.

U.S. stocks ended sharply higher on Wednesday (the large-cap benchmark S&P 500 booking its best day since June 30) as bond yields fell (after economic reports in both the US and Europe fueled bets that major central banks will pause their interest-rate hikes to prevent a recession) and shares of Nvidia gained ahead of quarterly results (after market) from the company whose chips are widely used for artificial intelligence (AI) computing.

In late hours, a $200 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) gained after a bullish revenue outlook from Nvidia Corp. — the chipmaker at the heart of the artificial-intelligence frenzy that has driven the equity-market higher this year. The company also approved an additional $25 billion in buybacks. Its shares jumped about 9% in extended trading, extending a gain of 3.2% during the regular session.

It forecast third-quarter revenue above Wall Street targets. Other tech companies jumped in after-hours trading as well including Microsoft ), which was last up about 2%.

U.S. Federal Reserve Chair Jerome Powell's comments on Friday at the Jackson Hole conference will be scrutinized for clues on the U.S. central bank's interest rate path

There’s been an ongoing debate on whether Nvidia is even more important to the broad trajectory of markets than Fed Chair Powell’s comments from Jackson Hole on Friday

Data showed U.S. business activity approached the stagnation point in August, with growth at its weakest since February, as demand for new business in the vast service sector contracted, while the downturn in euro zone activity was far deeper than expected.

According to strategists in a Reuters poll, the S&P 500 will eke out only marginal gains between now and year end, after its strong move up already this year. The index was forecast to end the year at 4,496.

Treasury two-year US yields, which are more sensitive to imminent policy moves, sank below 5% as data showed American business activity barely expanded on subdued customer demand. The 10-year German rate also slid as a contraction of private-sector activity in the euro area intensified.

An expert said August’s flash Purchasing Managers’ indexes “strongly suggest that we are at or close to the peak in monetary tightening cycles

The advance in bonds Wednesday was also attributed to technical factors. That’s after a Treasury selloff that recently drove 10-year yields to the highest since late 2007 on speculation that interest rates would remain elevated for longer to curb inflation — even if the Fed decides to pause its hiking campaign in September.

Another relevant economic signal came from the US mortgage industry, with applications for home purchases tumbling to an almost three-decade low. Separate data showed new-home sales hit the highest in over a year — as a surge in mortgage rates kept inventory on the resale market extremely limited. Traders also weighed a US government report saying that job growth in the year through March will probably be revised down by 306,000 — a smaller adjustment than some economists expected.

On Tuesday, the Dow and S&P 500 lost ground, while the Nasdaq eked out a small gain.

What drove markets
Technology shares led the S&P 500 index and the Nasdaq Composite sharply higher on Wednesday as investors awaited Nvidia’s +3.17% earnings report which is due out after the closing bell and will be scrutinized as a bellwether for the artificial-intelligence frenzy.

With Nvidia’s shares up 222.4% this year — against the S&P 500’s 15.5% gain — the chip maker encapsulates the enthusiasm for big technology stocks and AI excitement that together helped drive U.S. equity indices higher for much of 2023. Nvidia shares were up 3.2% on Wednesday, contributing to a 8.8% gain so far this week.

It’s just like a sentiment indicator for how the market responds to what’s likely to be a really strong report. The key here is more on the guidance and the shape of the ongoing surging demand that they’re getting in the data center segment.

Demand for Nvidia’s AI equipment is so high that the company is reportedly running up against limited supplies, so the earnings report is expected to offer investors a glimpse of how trends are balancing out. Nvidia’s CEO Jensen Huang said in March that the company has “ample supply” of AI capacity to meet the delivery demands through 2023, but that was before the latest wave of interest in these chips.

If earnings are again stellar and guidance robust, it will help reignite the tech rally which has stalled in recent weeks. If they don’t, we expect short-term market volatility.

Green warned that hype around Nvidia and other megacap tech stocks, fueled by enthusiasm over AI, may be reaching dangerous levels “as it could lead investors to assume that these stocks are a silver bullet to build long-term wealth — and they are not, at least not on their own.”

Stocks were also boosted after bond yields in Europe and the U.S. fell on data showing that eurozone economic activity contracted more than expected to a 33-month trough.

Earlier this week, a sharp rise in Treasury yields, with the 10-year rate hitting a 16-year high on Monday, had been blamed for a broad, tech-led stock-market pullback.

The yield on the 10-year note was down 13 basis points to 4.197% on Wednesday from 4.327% in the previous session, extending the Europe-inspired decline after U.S. purchasing manager index readings came in weaker than expected.

The S&P flash U.S. PMI reading for August came in at 47, down from a July reading of 49. A reading below 50 indicates a contraction in activity. The services PMI reading fell to a six-month low of 51 from a previous reading of 52.3

Meanwhile, a preliminary benchmark revision by the Labor Department signaled that workers on payrolls would be reduced by 306,000 as of March.

That also provided support for stocks, indicating the labor market hasn’t been running quite as hot as previously thought.

The data could help cool expectations around future interest-rate increases by the Federal Reserve, helping to buoy a market that remains “very sensitive to what the Fed is going to at a high level.

Investors were also looking ahead to Federal Reserve Chair Jerome Powell’s Friday speech at the Kansas City Fed’s annual symposium in Jackson Hole, Wyoming.

U.S. Bank’s Hainlin said he expects Powell to speak in “general terms” on Friday, with investors eager to hear any nuances around what policy makers are watching for clues to the path of inflation or the chair’s assessment of how a strengthening dollar or rising real yields are affecting financial conditions.

In other economic data, U.S. new home sales rose 4.4% to an annual rate of 714,000 in July, from a revised 684,000 in the prior month, the Commerce Department reported Wednesday.

European stock markets closed higher Wednesday, with attention focused on earnings and central bank comments in the U.S.

The euro was lower against the U.S. dollar and bonds rallied as PMIs also came in well below expectations for the euro zone, as services activity fell into decline.

European government bond yields fell Wednesday after a slew of weak economic data saw traders reassess the interest rate trajectory for the European Central Bank and Bank of England.

The 10-year German bund, seen as a euro zone benchmark, was 12 basis points lower at 2.537% at 1:30 p.m. Berlin time. Yields move inversely to prices.

Bert Colijn, senior euro zone economist at ING, said the euro zone purchasing managers’ index figures showed a “picture of deteriorating activity.”

Companies in focus
• United Parcel Services shares finished 1.2% higher after workers at the deliveries and logistics company voted for a new contract.
• AMC Entertainment fell 12.9%, after an 18% drop on Tuesday. A reverse stock split is planned on Wednesday, to be followed by the conversion of the APE preferred shares.
• Peloton Interactive fell 22.6% after the exercise vendor came up short with its revenue outlook for the latest quarter while disclosing that a bike recall has had a greater-than-expected impact on the business.
• Abercrombie & Fitch Co.’s shares soared 23.5% Wednesday, after the teen clothing retailer blew past estimates for the second quarter and raised guidance.
• Foot Locker slid 28.3% after the sporting goods retailer swung to a loss in the second-quarter, lowered its full-year guidance and said it’s suspending its quarterly dividend to conserve cash.
• NIKE ended 2.7% lower, down 10 straight sessions and its longest losing streak on record, according to Dow Jones Market Data.

Key events this week:
# US initial jobless claims, durable goods, Thursday
# Kansas City Fed’s annual economic policy symposium in Jackson Hole begins, Thursday
# Japan Tokyo CPI, Friday
# US University of Michigan consumer sentiment, Friday
# Fed Chair Jerome Powell, ECB President Christine Lagarde to address Jackson Hole conference, Friday

Currencies
# The Bloomberg Dollar Spot Index fell 0.3%
# The euro rose 0.2% to $1.0863
# The British pound fell 0.1% to $1.2718
# The Japanese yen rose 0.7% to 144.87 per dollar

Cryptocurrencies
# Bitcoin rose 2.9% to $26,603.63
# Ether rose 3.4% to $1,685.8

Bonds
# The yield on 10-year Treasuries declined 14 basis points to 4.18%
# Germany’s 10-year yield declined 13 basis points to 2.52%
# Britain’s 10-year yield declined 18 basis points to 4.47%

Commodities
# West Texas Intermediate crude fell 1.3% to $78.62 a barrel
# Gold futures rose 1% to $1,945.90 an ounce

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