KEY HIGHLIGHTS
Closing Bell: A Subdued Session
Indian equity markets ended a volatile and rangebound session little changed, but with a positive bias.
The S&P BSE Sensex ended 0.16% higher at 38,417 while the NSE Nifty 50 index ended 0.2% higher at 11,355.
Overnight cues will be absent for tomorrow as the U.S. Markets are shut on account of a holiday.
Among sectoral indices, the Nifty Bank index recovered nearly 250 points from the day's low during the final minutes of trade to end little changed.
Nifty Realty was the top sectoral laggard, ending 1% lower while most other sectoral indices ended flat.
Nifty I.T. and Nifty FMCG were the top sectoral gainers, ending 0.6% higher each.
The midcap index underperformed the benchmarks in today's session, ending 0.9% lower while the smallcap index ended flat.
India Volatility Index ended 2.5% lower at 21.59.
Market breadth remained in favour of the laggards. 740 stocks on the NSE ended with gains while 1,091 posted losses.
How Did The Sectoral Indices Perform
Time To Take Money Off The Table?
Buzzing Stock: IndiaMART InterMESH
- Top gainer on the Nifty Smallcap index
- Gains as much as 16.5% to Rs 4,770
- Trades near a record high
- Snaps two-day losing streak
- Has gained 28% in the last six trading sessions
- Today's volumes are almost triple its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 74
- The stock now trades 38% higher than its 12-month consensus price target of Rs 2,812, implying a negative return potential
Nifty Bank Declines For The Third Straight Day
Active Stock Options
- TCS' 2,400 Call: Premium up 23.1% to Rs 32.8. The contract has added 276 shares in Open Interest.
- Maruti's 7,500 Call: Premium down 16.7% to Rs 98.5. The contract has added 192 shares in Open Interest.
- ITC's 200 Call: Premium down 11.5% to Rs 2.3. The contract has added 218 shares in Open Interest.
Stock Reaction: Allcargo Logistics
The company informed the exchanges that the board has approved the plan of the promoter and promoter entites to delist the stock from the bourses.
The delisting price has been set at Rs 92.58 per share, which is a 22% discount to Friday's closing price.
The proposal was approved after the submission of the due diligence report from Inga Ventures.
Shares fell as much as 4.5% to Rs 113.65 and are down for the second straight day.
SBI Prices AT-1 Bond At Record Low Cost
India's largest lender, State Bank of India has priced one of the riskiest bank capital securities at a record-low coupon.
The lender will sell Additional Tier-1 (AT-1) bonds worth Rs 4,000 crore at a coupon of 7.74%. That is the lowest pricing on such a debt, which can be fully written down in a crisis, issued by any lender since the implementation of the Basel-III capital rules in 2013, Bloomberg News reports.
Stimulus measures from Indian authorities have reduced average borrowing costs in the local credit market to the cheapest in more than a decade.
State Bank of India has AAA credit scores from local credit companies, the AT1 offering is AA+ rated and can be called by after five years or any other year thereafter.
Stock Reaction: PNC Infratech
The company has informed the exchanges that its Joint Venture with SPML Infra has been declared as the L1 bidder for a project worth Rs 290 crore in Uttar Pradesh.
The project involves construction of Haraulipur Group of villages, water supply project, comprising surface and ground water supply schemes and allied works including commissioning, operation and maintenance for a period of 10 years, the company said in an exchange filing.
PNC Infratech's share in the JV with SPML Infra stands at 95%.
The project marks the company's foray into the water supply sector and is supposed to be constructed over a period of two years.
Shares are off the day's low, recovering after falling as much as 1.7% to Rs 159.7, post the announcement.
Markets At 2:10 P.M.
- Benchmark indices remain little changed in a volatile, rangebound session
- Nifty unchanged at 11,332
- Sensex unchanged at 38,350
- Nifty Bank down 0.3% at 22,945
- Nifty Midcap index down 0.9%
- Nifty Smallcap index up 0.1%
- India Volatility index up 0.4% to 22.23
- Most sectoral indices trade flat
- Nifty Realty is the top sectoral laggard; down 1%
- Nifty Pharma and Nifty Auto down over 0.5% each
- Nifty I.T. and Nifty Media gain over 0.5% each while Nifty FMCG is up 0.4%
- Bharti Infratel remains the top gainer on the Nifty; up 4.6%
- Mahindra & Mahindra remains the top laggard on the Nifty; down 2.8%
- 736 stocks on the NSE trade with gains while 1,053 decline
Money Market Update
The currency has ended on a weak note in today's session, after trading in a broad range.
The rupee ended at 73.35 against the U.S. Dollar as compared to Friday's close of 73.14. It had an intraday low of 73.44 and an intraday high of 73.03.
Today's losses made rupee the worst performing currency in Asia.
Yield on the 10-year government bond ended at 5.994% as compared to Friday's close of 5.931%.
Stock Reaction: Ester Industries
The company has informed the exchanges that the promoters - Fenton Investments, Wilemina Finance and Movi Ltd. have increased stake in the company to 64.04% from 59.13%.
The promoters acquired an additional 4.9% stake between August 11 - September 1 through off-market transactions, the company said in an exchange filing.
The statement also said that the company is focused on de-commoditizing its film business by nearly doubling the share of specialty, added products to 30% over the next two years from the current 16%.
The company intends to scale up its BOPET capacities by setting up a new facility through a wholly-owned subsidiary in Telangana. The first phase of the project, with a capital outlay of Rs 500 crore is likely to be completed by Q3FY22.
Shares gained as much as 4.8% to Rs 75.95, post the announcement and are up for the fourth straight day.
Buzzing Stock: Blue Dart
- Among the top performers on the Nifty 500 index
- Gains as much as 7.7% to Rs 2,465
- Trades at the highest level in six months
- Up for the third straight day
- Has gained 12% in the last three trading sessions
- Today's volumes are nearly quadruple its 20-day average
- Breakout above its 200-Day Moving Average of 2,241 on Friday
- Stock in overbought territory with Relative Strength Index (RSI) at 76
- Remains 29% below its 52-week high of Rs 3,450 on March 6, 2020
- Two out of the eight analysts tracking the stock have a buy recommendation; four sell calls
- The stock trades 14.6% higher than its 12-month consensus price target of Rs 2,073, implying a negative return potential
F&O Snapshot: Active Options Contracts
- Nifty September futures add 5.6% and 7,986 shares in Open Interest.
- Nifty Bank September futures add 16.2% and 9,198 shares in Open Interest.
Nifty: September 10 Expiry
- 11,300 Put: Premium down 11.8% to Rs 87.15. The contract has added 16,015 shares in Open Interest.
- 11,400 Call: Premium down 29% to Rs 60.3. The contract has added 17,468 shares in Open Interest.
- 11,500 Call: Premium down 40% to Rs 29.4. The contract has added 9,402 shares in Open Interest.
Nifty Bank: September 10 Expiry
- 22,500 Put: Premium down 31.6% to Rs 150. The contract has added 15,555 shares in Open Interest.
- 23,500 Call: Premium down 35.5% to Rs 145.4. The contract has added 16,388 shares in Open Interest.
- 23,000 Call: Premium down 22.7% to Rs 334.2. The contract has added 22,305 shares in Open Interest.
Stock Reaction: VA Tech Wabag
The company has informed the exchanges that it has secured a $48 million contract for a sewage treatment plant at the New Jeddah Airport.
The company will build a 300 Million Litres Per Day (MLPD) at the new Jeddah Airport, the exchange filing said.
The order in rupee terms is d at approximately Rs 360 crore.
The plant will be designed to be expandable towards 500 MLD of wastewater treatment.
"The project will further expand our growing footprint in the middle-east region," Deep Raj Saxena, CEO of the company's middle-east and Africa cluster said.
Shares gained as much as 2% to Rs 202.7, post the announcement.
European Markets Open Higher
Benchmark indices in Europe have opened higher, outperforming their peers in Asia which saw a weak trading session.
The Stoxx 600 has opened 0.6% higher, led by banking, auto and insurance stocks. Media and Energy stocks are underperforming.
Most Asian markets have ended mixed while futures on the Dow Jones are currently unchanged. Nasdaq futures however, are trading 140 points lower.
Brent crude trades 1.4% lower at $42.06 per barrel while Gold is down 0.2% at $1,929.1/Oz.
Let's take a look at how benchmark indices across Europe have opened:
- Euro Stoxx 50 up 0.5% at 3,278
- DAX up 0.66% at 12,927
- CAC up 0.6% at 4,996
- FTSE 100 up 0.8% at 5,846
- IBEX 35 up 0.9% at 7,052
How Are The Sectoral Indices Faring
Buzzing Stock: WABCO India
- Top gainer on the BSE Smallcap index
- Gains as much as 9.2% to Rs 7,497
- Biggest single-day gain in over three months
- Trades at the highest level since May 2018
- Up for the second straight day
- Has gained 11% in the last two trading sessions
- Today's volumes are 26% higher than its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 73
- Has recovered 42% from its 52-week low of Rs 5,296 on March 24, 2020
- None of the five analysts tracking the stock have a buy recommendation on the stock; 3 sell calls
- The stock trades 41.4% higher than its 12-month consensus price target of Rs 4,373, implying a negative return potential
Stock Reaction: Vodafone Idea
- Marks completion of the world's largest integration with launch of single-brand identity - 'Vi'
- Set up world-class network with largest spectrum portfolio, huge capacity and built-in 5G ready technologies
- Delivering fastest 4G speeds in many markets
Source: Exchange Filing
Shares are off the day's high, currently trading 2.8% higher at Rs 12.39, post the announcement.
Stock Reaction: Steel Strips Wheels
The company has confirmed the order of nearly 12,000 wheels from the U.S. and EU trailer market.
The order, worth nearly $1 lakh will be executed in the month of October from the company's Chennai plant, the exchange filing said.
The company expects orders of similar capacity going forward.
Shares fell as much as 1.5% to Rs 448.5, before recovering post the announcement. The stock is down for the third straight day.
Markets At Noon
- Benchmark indices continue to fluctuate
- Nifty down 0.2% at 11,312
- Sensex down 0.2% at 38,296
- Nifty Bank down 0.25% at 22,955
- Nifty Midcap index down 1%
- Nifty Smallcap index up 0.1%
- India Volatility Index up 0.8% at 22.33
- Nifty Auto and Nifty Realty are the top sectoral laggards; down 0.8% each
- Nifty I.T. is the top sectoral gainer; up 0.6%
- Bharti Infratel remains the top Nifty gainer; up 4.1%
- Mahindra & Mahindra remains the top Nifty laggard; down 3.7%
- 730 stocks on the NSE trade with gains while 1,022 decline
Nifty I.T. Is The Top Sectoral Gainer
Stock Reaction: TCS
The I.T. major has informed the exchanges that it has partnered with TPT South Africa for pioneering its logistics supply chain transformation.
TPT or Transnet Port Terminals is a state-owned freight transport and handling company. TCS will help TPT develop an integrated online marketplace platform by bringing together cargo owners, shipping lines, clearing and forwarding agents, the exchange filing said.
The Cargo Connect marketplace is expected to be ready in the next 12 months.
Shares are at the day's high, gaining as much as 2.1% to Rs 2,337.9. The stock is trading at a record high.
Earnings Reaction: Nalco Q1FY21
- Revenue down 34% to Rs 1,380 crore
- Net profit down 83% to Rs 16.6 crore
- Ebitda down 40% to Rs 128.7 crore
- Ebitda margin at 9.3% from 10.3%
- Chemicals segment revenue down 17% to Rs 768.5 crore
- Aluminium segment revenue down 37% to Rs 930.6 crore
- Power and Fuel costs down 10% to Rs 634.5 crore
Brokerages however are divided on the prospects of the stock going forward. Antique stock broking has maintained its buy rating on the stock with a price target of Rs 44, citing its long alumina position and integrated business model.
However, Emkay has maintained its sell rating on the stock with a price target of Rs 30, citing a cloudy outlook beyond the third quarter of FY21.
Shares fell as much as 2.75% to Rs 35.3 and are down for the second straight day.
Buzzing Stock: UPL
- Worst performer on the Nifty 50 index
- Declines as much as 3.5% to Rs 490.8
- Biggest single-day drop in a month
- Down for the second straight day
- Has declined in five out of the last six trading sessions
- Heading towards its 200 and 50-Day Moving Average at 471 and 470
- Today's volumes are on-par with its 20-day average
- Has doubled from its 52-week low of Rs 240 on March 23, 2020 but remains 20.5% below its 52-week high of Rs 617 on November 5, 2019
- 32 out of the 35 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 19.1%
Foreign Investors Pour Into Indian Stocks
India's shrinking economy is not stopping foreign investors from pouring money into the country's stocks, betting on a recovery, Bloomberg News reports.
Foreign buyers plowed in a net $6 billion into Indian shares in August - the most since March last year. That is compared to all other markets in the region which saw outflows from foreign investors.
Foreign investors also invested in share sales by some large financial institutions like ICICI Bank, Axis Bank and HDFC.
"We place India at the top of the list with China for investment returns over the next 12-24 months," Nuno Fernades of GW&K Investments told Bloomberg.
Stock Reaction: Sterling & Wilson Solar
The company has announced that it has signed orders worth 300 million Australian Dollars or Rs 1,600 crore in Australia.
The company along with its Australian subsidiary has bagged two large-scale solar projects in the country, which will have an installed capacity of over 300 MW, the company said in an exchange filing.
"With this, the total order book of the company in Australia stands at Rs 6,350 crore," Director and Global CEO Bikash Ogra was quoted as saying.
"With the continent’s regulatory environment becoming more conducive towards renewable energy and the prevalence of high electricity tariff, the commercial viability of solar projects is improving," he further said.
Shares gained as much as 6% to Rs 285, post the announcement. The stock is up for the fifth straight day - the longest winning streak in over two months.
Buzzing Stock: GSK Pharma
- Among top performers on the Nifty 500 index
- Gains as much as 6% to Rs 1,669.9
- Biggest single-day gain in five months
- Trades at the highest level in over seven months
- Up for the second straight day
- Today's volumes are 42% higher than its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 71
- Trading near its 52-week high of Rs 1,725 on January 29, 2020
- Has nearly doubled from its 52-week low of Rs 950 on March 13, 2020
- Five out of the 11 analysts tracking the stock have a buy recommendation; 4 sell calls
- The stock trades 8.1% higher than its 12-month consensus price target of Rs 1,515, implying a negative return potential
Third Day Of Losses For The Realty Index
Earnings Reaction: Jubilant Lifesciences Q1FY21
- Revenue down 13.3% to Rs 1,892.2 crore
- Net profit down 52.4% to Rs 88 crore
- Ebitda down 30.6% to Rs 301.5 crore
- Ebitda margin at 15.9% from 19.9%
- Pharmaceutical segment revenue down 17.5% to Rs 1,095.8 crore
- Life Sciences Ingredients revenue down 8.5% to Rs 738.8 crore
- Drug Discovery and Development Solutions revenue up 25.5% to Rs 60.7 crore
- All numbers are consolidated and compared on a year-on-year basis
Management Commentary:
- Witnessing strong demand conditions and improved pricing environment.
- Demand conditions in radiopharma and allergy business have started improving with gradual opening of U.S. healthcare markets.
- We have entered into four separate clinical and commercial supply agreements for the GMP manufacture of Covid-19 treatment and vaccine candidates.
- Strong demand conditions in this business, along with our business development initiatives, promise upside to performance in the near-term.
Shares fell as much as 7% to Rs 771.9, to its lowest level in over a month.
Stock Reaction: Tejas Networks
The company has informed the exchanges that it has won a purchase order worth Rs 32 crore from Sterlite Technologies and L&T Construction for its Gigabit Passive Optical Network fiber-to-the-home equipment.
The order is for a state-led Bharatnet project in South India, the company said in an exchange filing.
Tejas Networks will supply its state-of-the-art GPON, OLT and ONT products for this project, which is being funded as a part of BharatNet.
Shares are locked in an upper circuit of 5% at Rs 64.40, post the announcement. The stock is up for the second straight day.
Markets At 10:10 A.M.
- Benchmark indices have a volatile start to trade
- Nifty down 0.22% at 11,308
- Sensex down 0.23% at 38,267
- Nifty Bank up 0.2% at 23,059
- Nifty Midcap index down 0.7%
- Nifty Smallcap index down 0.2%
- India Volatility Index up 2.9% to 22.8
- Nifty Pharma is the top sectoral laggard; down 0.8%
- Nifty Realty down 0.7% while Nifty FMCG declines 0.6%
- Bharti Infratel is the top Nifty gainer; up 3.4%
- Mahindra & Mahindra is the top Nifty laggard; down 3.6%
- 661 stocks on the NSE gain while 990 decline
Money Market Update
The currency has opened the new week on a flat note, after ending as the second best performer in Asia last week.
The rupee opened at 73.17 against the U.S. Dollar as compared to Friday's close of 73.14.
There is scope for further tactical gains in the Indian rupee and a couple of other currencies given supportive valuations, high carry-to-volume ratios, and relatively stable fundamentals, Barclays wrote in a note.
Within the bond markets, traders will assess the interest on bonds after the government sold 2025 and 2050 bonds at highter-than-expected yields last week.
According to AU Small Finance Bank, the RBI is probably trying to anchor bond yields around 6%, keeping in mind the interest of the banks and the government.
Stock Reaction: Larsen & Toubro
The company has informed the exchanges that the Power Transmission and Distribution business of L&T Construction has won a 'large' order.
The order pertains to establishing transmission lines and substations associated with a major infrastructure project in Telangana.
The scope of the project involves establishing three new substations of 400 kV with reactors and more than 170 kilometers of 400 kV transmission links, on a turnkey basis, the company said in an exchange filing.
The company has also won another order to provide electrical and mechanical systems for two tunnels of the Udhampur-Srinagar-Baramulla rail project.
It has also won a package to construct 400 kV overhead lines connecting three grid stations in Oman while a repeat order has been won from a reputed client in the middle east, the company said.
As the company has classified the order as 'large' the order ranges between Rs 2,500 crore - Rs 5,000 crore.
Shares recovered from the day's low after declining as much as 2.8% to Rs 916.1, post the announcement.
Coronavirus India Update
- India surpasses Brazil to become the country with second highest Covid-19 cases globally
- Second straight day of over 90,000 cases reported in India
- Biggest single-day spike in new cases
- 90,802 new cases reported in the last 24 hours
- Overall cases now at 42,04,613
- Active cases at 8,82,542
- Patients cured / discharged / migrated at 32,50,429
- Death toll rises to 71,642
- 1,016 deaths reported in the last 24 hours
- 69,564 recoveries reported in the last 24 hours
Stock Reaction: Tata Motors DVR
A-shares of the passenger vehicle maker are trading with gains in today's session after promoter Tata Sons increased its stake in it on Friday.
Tata Sons acquired 53 lakh shares of Tata Motors DVR, amounting to 1.04% stake on Friday at a price of 56.02 per share.
Shares gained as much as 11.4% to Rs 62.5 and are up for the fourth straight day. This was the biggest single-day gain for the stock in over four months. It now trades at the highest level since February this year.
Shares of Tata Motors cooled off after gaining as much as 2.8% to Rs 152 - which was its highest level in seven months.
Stock Reaction: Vodafone Idea
The telecom operator will be making a strategic announcement at 11:45 a.m. today.
The company's board on Friday approved raising funds to the tune of Rs 25,000 crore.
The company will raise up to Rs 15,000 crore through NCDs and up to Rs 15,000 crore via equity shares or securities convertible into equity shares, it said in an exchange filing.
The proposals of the fund raising will be take up at the company's AGM which is scheduled to be held on September 30.
Shares gained as much as 10% to Rs 13.25 - its highest level since June 2019, ahead of the announcement.
Opening Bell: A Mixed Start
Indian equity markets have opened on a mixed note, after Asian markets stabilised post a weak start to the new trading week.
The S&P BSE Sensex opened 0.2% lower at 38,284 while the NSE Nifty 50 index has opened 0.2% higher at 11,359.
Among the sectoral indices, private banks are the top laggards with the Nifty Bank index opening 0.7% lower.
Most other sectoral indices have opened but with a positive bias. The Nifty Media index is up 0.6% while the Nifty Auto, Nifty Pharma and Nifty Realty indices opened with gains of 0.5% each.
Broader markets are trading with gains. The Midcap index is up 0.4% while the smallcap index has gained 0.55%.
881 stocks on the NSE have opened with gains while 338 are declining.
Latest On The Coronavirus
- Global cases cross 27 million
- Death toll rises to 8.82 lakh
- India set to surpass Brazil as the country with the second highest number of Covid-19 cases
- South Korea adds 119 new cases, the fewest in three weeks
- Singapore discoveres three new clusters of foreign-worker dormitories
- Brazil reports 14,521 new cases with 447 deaths
- Ireland reports another 138 new cases
- France reports 7,071 cases in the last 24 hours
- New York new infections at 729; down below 800 for the first time in four days
- 2,988 new cases reported in the U.K.; most in over three months
- 1,297 cases reported in Italy
- U.S. added 44,737 new cases on Sunday
How Did The Fund Flows Fare On Friday
Key Stocks In Focus
- Vodafone Idea: Board approves raising up to Rs 15,000 crore via NCDs and up to Rs 15,000 crore through issue of equity shares or secrities convertible to equity shares. Total raising of funds shall not exceed Rs 25,000 crore. Proposals to be taken for approval at the company's AGM on September 30.
- Reliance Industries: Bloomberg News reports that it has released a detailed plan to carve out its oil-to chemicals business on Sunday. The assets will be held by a unit of Reliance, and the ultimate ownership won’t change as a result of the plan, a separate filing disclosed.
- Allcargo Logistics: Board approves the company's de-listing proposal. The floor price for the delisting has been set at Rs 92.58 per share, which is a 22% discount to Friday's closing price.
- Dilip Buildcon: Declared L-1 bidder for a new HAM project worth Rs 1,905 crore.
- NMDC: Hikes Lump Ore prices by 10% month-on-month to Rs 3,250 per tonne while prices of Fines raised 11% month-on-month to Rs 2,960 per tonne
- Coal India: Reduces output target to 660 million from 710 million for FY21.
- MRPL: To seek shareholder nod to raise Rs 5,000 crore via NCDs on September 12.
- Endurance Technologies: The company has stated that it is eligible for extension in export incentives and is entitled to receive Rs 466.4 crore under the scheme. It has already accounted for Rs 128.8 crore until Q1FY21.
- Pricol: Board approves raising Rs 100 crore through a rights issue. It has constituted a Rights Issue committee to consider the terms and conditions of the issue among other factors.
- Happiest Minds IPO: Anchor investors allocated 1.9 crore shares at a price of Rs 166 per share. The company has raised Rs 316 crore from Anchor investors like Government of Singapore, Nomura Funds and Aditya Birla Sun Life Mutual Fund.
- Non-Nifty Earnings Today: Future Lifestyle Fashions, CG Power, Info Edge, GSFC, HOEC, General Insurance Corporation, Parag Milk Foods
For details on earnings reported after market hours, key brokerage updates and F&O cues, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
Another Day Of Losses?
Good Morning!
Indian equity markets saw their worst performance in four months in the week ended Sept. 4, with the Sensex and Nifty 50 declining more than 2.5% each.
The Nifty Bank, too, gave up 6% of its gains from the previous week, and was the top laggard along with the PSU Bank Index.
Futures are indicating another weak start to the new trading week. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.5% to 11,308 as of 8:05 a.m. on Monday.
Stocks like Vodafone Idea Ltd. will remain in focus as it will make a strategic announcement close to noon. Jubilant Lifesciences, NLC India, Nalco, among others, will also be in focus after their quarterly numbers were reported on Friday and over the weekend.
Future Lifestyle, CG Power, Info Edge, HOEC are some companies that will announce their results today. Besides, Happiest Minds Technologies' IPO opens for subscription today.
Asian markets have stabilised after a weak start to trade. Markets in Japan and China are little changed, while those in South Korea and Australia are advancing.
West Texas Intermediate crude recovered from the day's low, currently down 1.3% at $39.27 per barrel, while gold was steady at $1,937.4/Oz.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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