KEY HIGHLIGHTS
Closing Bell: A Strong Close
Indian equity markets ended the truncated week on a strong note, extending the gains made during Monday's trading session.
The S&P BSE Sensex ended 1,65% higher at 38,697 while the NSE Nifty 50 index ended above the mark of 11,400 - up 1.5% at 11,416. Interestingly, the 11,400 Call strike on the derivatives side had the maximum Open Interest with 41.6 lakh shares on Wednesday.
Both benchmark indices have ended at the highest level in two weeks.
The two new debutants - Chemcon Specialty Chemicals ended with gains of 72% on the first day of trading, while Computer Age Management Services (CAMS) ended with gains of 14%.
Private Banks were the outperformers in today's session. The Nifty Bank ended with gains of 3.7%. The index has gained over 1,200 points this week. Gains were led by IndusInd Bank - which ended 12% higher and as the top gainer on the Nifty 50 index. Axis Bank, ICICI Bank, Kotak Mahindra Bank and HDFC Bank too contributed to the gains.
The Media index was the other major sectoral performer, ending 2.8% higher courtesy gains seen in film exhibitors PVR and Inox Leisure.
Other sectoral indices like Nifty Auto, Nifty I.T., Nifty Metal gained between 0.5%-1%.
Broader markets underperformed the benchmarks in today's session. The Nifty Midcap index ended with gains of 0.8% while the Nifty Smallcap index gained 0.7%.
India Volatility Index ended 6.4% lower at 18.27.
1,126 stocks on the NSE ended with gains while 693 stocks ended with losses.
Decoding The Markets This Week
September Auto Sales: Volvo Eicher Commercial Vehicles
- Overall sales down 7.3% to 3,506 units
- Volvo truck sales down 49.5% to 56 units
- Total exports down 4.3% to 510 units
- Total domestic sales down 6.4% to 2,940 units
- LMD Bus sales down 45% to 177 units
- Overall HD sales up 9% to 572 units
- LMD exports up 21.8% to 357 units
- Comparisons made on a year-on-year basis
Shares are currently trading little changed at Rs 2,196. The stock has snapped a four-day gaining streak.
September Auto Sales: Ashok Leyland
- Overall sales down 5% to 8,344 units
- Overall domestic sales flat at 7,847 units
- Total M&HCV sales down 23% to 3,642 units
- Domestic M&HCV sales down 19% to 3,280 units
- M&HCV Truck sales down 1% to 3,312 units
- Domestic M&HCV truck sales up 2% to 3,202 units
- M&HCV Bus sales down 76% to 330 units
- Domestic M&HCV bus sales down 91% to 78 units
- LCV sales up 17% to 4,702 units
- Comparisons made on a year-on-year basis
Shares gained as much as 3.4% to Rs 76.9, post the announcement. The stock is trading at the highest level in two weeks.
Buzzing Stock: Mahindra & Mahindra Financial Services
- Among top gainers on the Nifty Midcap index
- Gains as much as 6.4% to Rs 130.9
- Biggest single-day gain in over two months
- Trades at the highest level in two weeks
- Has gained in three out of the last five trading sessions
- Up 15% over the last five trading session
- Today's volumes are 85% above its 20-day average
- One-month implied volatility is 46%
- Nearing 50-Day Moving Average at 132.1
- Relative Strength Index (RSI) of the stock at 51.2
- Still nearly 50% below its 52-week high of Rs 245 on February 11, 2020
- 23 out of the 37 analysts tracking the stock have a buy recommendation; 3 sell calls
- Return potential of the stock as per Bloomberg data in 9.1%
Active Stock Options
- HDFC Bank's 1,100 Call: Premium up 33.4% at Rs 31.95. The contract has added 77,000 shares in Open Interest.
- ICICI Bank's 370 Call: Premium up 62% to Rs 14.1. The contract has shed 7.4 lakh shares in Open Interest.
- PVR's 1,400 Call: Premium up 61% to Rs 45. The contract has added 2.3 lakh shares in Open Interest.
September Auto Sales: Atul Auto
Overall sales for the month of September have seen a decline of 69.2% as compared to the same period last year, the company said in an exchange filing.
Overall sales in the first half of FY21 - the April to September period are down 75.1% to 5,662 units, the company said.
Shares are off the day's low, currently trading 1% lower at Rs 168. The stock is down for the third straight day.
Gasoline Sales In India Rise For The First Time Since February
Gasoline sales at India's three big fuel retailers rose 2.1% in September as compared to the previous year to 2.2 million tonnes.
This was the first full month increase since February, according to preliminary data from officials with direct knowledge of the matter, Bloomberg News reports.
Gasoline sales in September rose 10.5% month-on-month. The sale of Diesel rose 22% in September as compared to August, to 4.84 million tonnes. On a year-on-year basis, diesel sales were down 7.3%.
Gasoline sales are boosted as people are opting to use cars and bikes for commuting, officials said. Jet fuel sales rose 22.6% month-on-month but was down 53.6% as compared to last year.
HPCL, BPCL and Indian Oil combine to account for more than 90% of the Indian fuel sales.
Buzzing Stock: IndusInd Bank
- Top gainer on the Nifty 50 index
- Gains as much as 10% to Rs 580.1
- Biggest single-day gain in five months
- Trading at the highest level in two weeks
- Snaps two-day losing streak
- Has gained in three out of the last five trading sessions
- Up 18% in the last five trading sessions
- Today's volumes are double its 20-day average
- One-month implied volatility is 56%
- Breaks above its 50-Day Moving Average of 556.6
- Relative Strength Index (RSI) of the stock at 53
- 35 out of the 57 analysts tracking the stock have a buy recommendation; 8 sell calls
- Return potential of the stock as per Bloomberg data is 6.3%
Markets At 2:10 P.M.
- Benchmark indices extend gains; at the day's high
- Nifty up 1.4% at 11,408
- Sensex at 1.6% at 38,657
- Nifty Bank up 3.3% at 22,162
- Nifty Midcap index up 0.9%
- Nifty Smallcap index up 0.8%
- India Volatility Index down 5% to 18.56
- Nifty Media is the other major sectoral gainers after the Nifty Bank; up 3.3%
- Nifty Realty, Nifty Metal and Nifty Auto gain over 1.5% each
- Nifty I.T., Nifty Pharma and Nifty FMCG up 0.6% each
- IndusInd Bank is the top Nifty gainer; up 10%
- 40 out of the 50 Nifty constituents traded with gains
- ONGC remains the top Nifty laggard; down 1.2%
- 1,141 stocks on the NSE traded with gains while 642 are declining
Money Market Update
The currency ended with strong gains in today's session, in-line with the buoyancy seen in the equity markets, to end the truncated week on a high.
The rupee ended at 73.12 against the U.S. Dollar, as compared to Wednesday's close of 73.76. It ended near the day's high of 73.09. This was the biggest single-day gain for the rupee in a month.
With the currencies that were trading in today's session, the rupee emerged as the best performer in Asia.
Over the four-day period, the rupee was the second best performer in Asia, behind the Offshore Chinese Renminbi.
Yield on the 10-year government bond ended at 5.988% as compared to Wednesday's close of 6.011%.
Buzzing Stock: Gujarat Ambuja Exports
- Top gainer on the Nifty 500 index
- Gains as much as 17.6% to Rs 128
- Biggest single-day gain since June 2014
- Trading at the highest level since January 2019
- Today's volumes are five times higher than its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 72
- Today is the ex-date for the share split from face of Rs 2 to Re 1 per share
- Has nearly tripled from its 52-week low of Rs 42.5 on March 23, 2020
- Both analysts tracking the stock have a buy recommendation
- The stock trades 9.2% higher than its 12-month consensus price target of Rs 110, implying a negative return potential
Stock Reaction: Dr Reddy's Laboratories
The drugmaker announced the launch of Cinacalet Tablets - a therapeutic equivalent generic version of Sensipar Tablets, after getting approval from the U.S. FDA.
The Sensipar brand and generic market had overall sales of $312 million in the U.S. market, for the most recent 12-months ending July 2020, as per data from IQVIA health.
The tablets are available in 30 mg, 60 mg and 90 mg versions, in a bottle count size of 30, the company said in its exchange filing.
Shares are currently trading 0.75% lower at Rs 5,149 and have alternated between gains and losses in the four trading sessions this week.
F&O Snapshot: Active Options Contract
- Nifty October futures add 13% and 11.8 lakh shares in Open Interest.
- Nifty Bank October futures add 29.7% and 5 lakh shares in Open Interest.
Nifty: October 8 Expiry
- 11,400 Call: Premium up 137.2% to Rs 103.5. The contract has added 5.7 lakh shares in Open Interest.
- 11,450 Call: Premium up 158.7% to Rs 78. The contract has added 1.3 lakh shares in Open Interest.
- 11,300 Put: Premium down 59% to Rs 55.1. The contract has added 11 lakh shares in Open Interest.
Nifty Bank: October 8 Expiry
- 23,000 Call: Premium up 140% to Rs 67. The contract has added 61,525 shares in Open Interest.
- 22,000 Call: Premium up 172.3% to Rs 392.1. The contract has shed 1.1 lakh shares in Open Interest.
- 21,800 Put: Premium down 58% to Rs 237.5. The contract has added 1 lakh shares in Open Interest.
European Markets Trade With Gains
Benchmark indices in Europe gained for the first time in three sessions, in-line with most of its Asian peers and the U.S. futures.
The Stoxx 600 opened 0.8% higher with retail and technology shares leading the gains. F&B along with tobacco stocks were the top laggards.
Benchmark indices in Australia ended the session with gains. Trading in Japan was called off for the day due to a technical error while most other Asia-Pacific markets were shut on account of a holiday. Futures on the Dow Jones are trading higher by 270 points.
Brent crude is trading little changed at $42.37 per barrel while Gold traded 0.6% higher at $1,896/Oz.
Let's take a look at how the European markets are trading:
- Euro Stoxx 50 up 0.6% at 3,214
- DAX up 0.3% at 12,795
- CAC up 1.1% at 4,858
- FTSE 100 up 0.9% at 5,917
- IBEX 35 up 1.1% at 6,791
September Auto Sales: Mahindra & Mahindra
- Overall sales down 17% to 35,920 units
- Domestic sales down 16% to 34,351 units
- Exports down 41% to 1,541 units
- Passenger Vehicle sales up 4% to 14,857 units
- Utility Vehicle sales up 6% to 14,663 units
- Sales of Cars & Vans down 59% to 194 units
- Three-wheeler sales down 92% to 587 units
- M&HCV sales down 63% to 153 units
- Commercial Vehicle sales flat at 18,907 units
M&M Tractor Division:
- Overall sales up 17% to 43,386 units
- Domestic sales up 18% to 42,361 units
- Exports up 6% to 1,025 units
Shares are off the day's high, currently trading 0.9% higher at Rs 613.2, post the announcement.
How Are The Sectoral Indices Faring
Brokerage Reaction: Tube Investments
Shares of the Murugappa Group company are surging in today's session after brokerage firm IIFL initiated coverage on the stock with a buy rating.
IIFL's Rationale:
- Leveraging its manufacturing and R&D expertise to maintain leadership
- Ingrained focus on growth, profitability, RoCE and cash generation is visible in the company's financials with RoE improving to 19% in FY20.
- Recent announcement for acquisition of 58.6% stake in CG Power will further drive diversification away from autos
- The large0diameter tubes segment, driven by import substitution, should see healthy growth as demand revives in FY22-23
- Current valuations, adjusted for of CG power are fair
- Faster than expected recovery in core businesses and quick turnaround of CG Power will drive upsides and re-rating.
Shares gained as much as 7.6% to Rs 650 - the highest level in nearly a month. IIFL has placed a price target of Rs 680 on the stock.
PNB Is The Only Laggard On The Nifty Bank
Buzzing Stock: Bandhan Bank
- Top gainer on the Nifty Next 50 index and second best performer on the Nifty Bank index
- Gains as much as 5% to Rs 286.7
- Trading at the highest level in two weeks
- Snaps two-day losing streak
- Has gained in three out of the last five trading sessions
- Up 13% in the last five trading sessions
- Today's volumes are 19% higher than its 20-day average
- One-month implied volatility is 46%
- Nearing 100-Day Moving Average at 297.8
- Relative Strength Index (RSI) of the stock at 48, after rebounding from oversold levels
- Trading 56% below its 52-week high of Rs 650 on October 29, 2019
- 11 out of the 19 analysts tracking the stock have a buy recommendation; 4 sell calls
- Return potential of the stock as per Bloomberg data is 30.2%
Markets At Noon
- Benchmark indices extend gains; trading around the day's high
- Nifty up 1.44% at 11,410
- Sensex up 1.53% at 38,650
- Nifty Bank up 2.8% at 22,043
- Nifty Midcap index up 1%
- Nifty Smallcap index up 1.1%
- India Volatility Index down 4% to 18.75
- Nifty Media remains the top sectoral gainer; up 3.5%
- Nifty Metal, Nifty Auto and Nifty Realty up over 1.5% each
- Nifty PSU Bank and Nifty FMCG gain between 0.5-1%
- Bajaj Auto remains the top Nifty gainer; up 5.8%
- 42 out of the 50 Nifty constituents are trading with gains
- ONGC remains the top Nifty laggard; down 1.3%
- 1,180 stocks on the NSE trade with gains while 561 are declining
Stock Reaction: KEC International
The global infrastructure EPC company has secured new orders worth Rs 1,033 crore for its various business, it said in an exchange filing this morning.
The company's Transmission & Distribution business has won orders worth Rs 890 crore in India, Africa, East Asia Pacific and the Americas.
The railway business has secured orders worth Rs 79 crore for Signaling and Telecommunications (S&T) and Metro Electrification works in India.
The cables business has won orders worth Rs 64 crore, for various types of cabling projects in India and overseas.
"Our International order book has strengthened significantly in the last few months especially in the Middle East and Africa regions," MD & CEO Vimal Kejriwal was quoted as saying.
Shares gained as much as 4% to Rs 357.9 - its highest level since June 2018, before cooling off. The stock is up for the sixth straight day, its longest winning streak in a month.
Indian Debt Sees First Foreign Inflow In Seven Months
Foreign holdings of Indian fixed-income assets rose by Rs 2,250 crore in September - the first inflow in seven months, Bloomberg News reports quoting a note from Barclays.
Sovereign bond holdings rose by Rs 4,900 crore in September, the note said. Out of that - Rs 3,100 crore was under the usual route and Rs 1,800 crore was under debt fully open to foreigners.
However, holdings of corporate bonds fell Rs 2,700 crore during the month gone by.
Low and stable implied forex rates are helping attract some demand, the note said. Barclays expects demand to remain muted in October.
The note also does not expect any impact from JPMorgan's decision to not add India's sovereign bonds into its index for now.
Stock Reaction: Coal India
The state-run miner reported a 31.6% growth in production for the month of September to 40.51 million tonnes.
Offtake for the month of September too grew at a similar quantum - up 31.7% year-on-year to 46.46 million tonnes.
As for the first half of FY21 (April-September) overall production was 2% lower at 236.05 million tonnes while offtake was down 7.6% to 254.93 million tonnes.
Shares rose as much as 1.9% to Rs 118.2, post the announcement. The stock is trading near its 52-week low.
Stock Reaction: Steel Strips Wheels
The company achieved total wheel rim sales of 14.61 lakh as compared to 11.74 lakh in the previous year - a growth of 24.4%.
Gross turnover for the month of September stood at Rs 201.4 crore - a growth of 44.1% as compared to the same period last year.
The company in its exchange filing said that this month should see the best ever monthly operational performance.
The company's Alloy Wheel Segment reported its highest ever monthly volume sale in September with a year-on-year growth of over 700%.
Growth was mainly led by exports, which saw a growth of 98% while the truck business grew 28% year-on-year. The company expects further growth in the exports business as its export order book is at the highest level, according to its statement.
The company has also reiterated its confidence of seeing 30% volume growth for this financial year.
Shares gained as much as 3.2% to Rs 454.9, post the announcement and are trading at the highest level in nearly three weeks.
Buzzing Stock: Equitas Holdings
- Second best performer on the Nifty Smallcap index
- Gains as much as 8% to Rs 54.3
- Biggest single-day gain in nearly three months
- Snaps two-day losing streak
- Has gained in three out of the last five trading sessions
- Today's volumes are nearly triple its 20-day average
- Breaks above its 100 and 50-Day Moving Average at 51.8 and 52.7
- Relative Strength Index (RSI) of the stock at 54.7
- Still trades 55% below its 52-week high of Rs 120.7 on January 31, 2020
- 13 out of the 15 analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential of the stock as per Bloomberg data is 32.8%
Supreme Court Allows Refund By Airlines For Canceled Flights
A three-judge Supreme Court Panel, headed by Justice Ashok Bhushan has said that it has accepted a suggestion by the Directorate General of Civil Aviation (DGCA) to issue refund of tickets booked for travel during the lockdown period and issue vouchers called credit shells for other canceled seats.
DGCA's proposal was that to have full refund for tickets which were booked during the lockdown. If airlines cannot refund the money due to financial difficulty, they must have to deposit the amount in the credit shell of the customer which can be used till March 31, 2021.
By March 31, the airlines shall refund the cash to the holder of the credit shell.
Shares of InterGlobe Aviation are off the day's high after gaining as much as 2.75% in early trade.
On the other hand, shares of SpiceJet are at the day's high, up 2.3% to Rs 49.35.
September Auto Sales: Maruti Suzuki India
- Overall sales up 30.8% to 1,60,442 units
- Total domestic sales up 32.2% to 1,52,608 units
- Exports up 9% to 7,834 units
- Mini and Compact segment sales up 44.3% to 1,11,459 units
- Passenger Car sales up 43.1% to 1,12,993 units
- Total Domestic PV sales up 33.9% to 1,47,912 units
- LCV sales up 4% to 2,128 units
- Utility Vehicle sales up 10.1% to 23,699 units
- Ciaz sales down 10.6% to 1,534 units
- H1FY21 sales down 36.6% to 4,69,729 units
Management Commentary:
- Overall sales in Q2 up 16.2% over the same period last year, courtesy a lower base.
- Sales performance in H1FY21 needs to be seen in conjunction with Covid-19 related disruptions.
- Production and sales operations continue to take place with all safety requirements.
Shares rose as much as 2.45% to Rs 6,909, post the announcement. The stock is up for the fifth straight day.
Manufacturing PMI Data For September
India's Manufacturing Purchasing Managers' Index for the month of September rose to the highest level since January 2012.
The index rose to 56.8 in September, as compared to 52 in August and 51.4 in the same period last year. A reading above 50 indicates expansion while that below 50, indicates contraction.
Output index rose to 65.2 in September - the highest reading since December 2007, as compared to 55.5 in August. Output rose at the third fastest pace in the history of the survey.
New orders rose as compared to the previous month to its highest reading since February 2012.
“Despite strong growth of order book volumes, Indian goods producers signalled another reduction in payroll numbers. Employment has now decreased for six consecutive months,” IHS Markit said in its note.
Stock Reaction: Cut In Gas Prices
The government cut the price for most its natural gas produced from domestic fields to a level last seen in 2010.
The prices were cut 25% to $1.79 per mmBtu, according to the Oil Ministry's Petroleum Planning and Analysis cell. This is well below the production cost of companies like ONGC and Oil India.
The new prices, effective for a period of six months, starting October 1, will make the gas business unprofitable for producers. ONGC and Oil India together make up for nearly 85% of India's gas production. However, the move is likely to benefit City Gas Distributors.
Stock Reaction:
- ONGC: Shares fell as much as 3.8% to Rs 66.6 - the lowest level in five months. The stock is the top laggard on the Nifty 50 index.
- Oil India: Shares fell as much as 2.6% to Rs 87.
- Indraprastha Gas: Shares gained as much as 3.9% to Rs 401.8.
- Mahanagar Gas: Shares gained as much as 3.8% to Rs 862.
- Gujarat Gas: Shares gained as much as 2.8% to Rs 316.9.
Markets At 10:20 A.M.
- Benchmark indices surge to the day's high in the first hour of trade
- Nifty up 1.24% at 11,386
- Sensex up 1.4% at 38,586
- Nifty Bank up 2.3% at 21,956
- Nifty Midcap and Smallcap indices up 1% each
- India Volatility Index down 4.4% to 18.66
- All sectoral indices trade with gains
- Nifty Media is the top sectoral gainer; up 3.5%
- Nifty Metal and Nifty Realty indices gain 2% each
- Nifty Auto, Nifty PSU Bank gain over 1.5% each
- Bajaj Auto is the top Nifty gainer; up 6.1%
- 41 out of the 50 Nifty constituents trade with gains
- ONGC is the top Nifty laggard; down 1.7%
- 1,281 stocks on the NSE trade with gains while 394 decline
Money Market Update
The currency opened stronger in today's session, in-line with the positive sentiment across equity markets and weakness in the greenback.
The rupee opened at 73.59 against the U.S. Dollar, as compared to Wednesday's close of 73.76. It was the second best performing currency in Asia on Wednesday.
Yield on the 10-year government bond opened at 5.966% as compared to Wednesday's close of 6.011%.
Bond markets received some relief after the government said that it will leave its borrowing plans unchanged for the second half of the year. A Bloomberg survey was expecting a 20% jump in borrowing.
New Listing: Computer Age Management Services
The Warburg Pincus-backed firm listed at a premium of 24% to its listing price of Rs 1,230 per share.
Shares listed at Rs 1,522 and rose to as high as Rs 1,550, up 26% in the initial minutes of trade.
The Rs 2,242 crore IPO was subscribed 47 times on the final day of bidding.
CAMS, in the prospectus, said the proceeds will not be received by it, and will go to NSE Investments that will exit the company. The arm of the nation’s largest bourse was asked by the Securities and Exchange Board of India to divest its entire 37.4% holding in the company.
New Listing: Chemcon Specialty Chemicals
The specialty chemical company had a strong debut on the bourses, with shares more than doubling at the start of trade.
Shares listed at Rs 730, a premium of 115% to its issue price of Rs 340. Shares rose to as high as Rs 743.8, before cooling off.
This specialty chemical maker's Rs 318-crore IPO was subscribed 149 times on the final day of bidding on Sept. 23.
Chemcon sold 93.5 lakh shares through the offer at Rs 338-340 apiece. It had raised Rs 95.44 crore from anchor investors ahead of its IPO.
Stock Reaction: Reliance Industries
Silver Lake announced on Wednesday night that it will invest an additional sum of Rs 1,875 crore in Reliance Retail Ventures.
Silver Lake will now hold 2.13% stake in RRVL on a fully-diluted basis with a combined investment of Rs 9,375 crore, the company said in an exchange filing.
This comes just a few hours after General Atlantic announced its investment in the retail venture.
Shares are currently flat after gaining as much as 1.3% to Rs 2,264.
Stock Reaction: Multiplex & Hotel Stocks
India continues to lift restrictions despite adding new Covid-19 cases at the fastest pace in the world.
Cinema, theatres and multiplexes will be permitted to open with up to 50% of their seating capacity, the Ministry of Home Affairs said in a statement on Wednesday. Standard Operating Procedures will be issued separately by the Ministry of Information & Broadcasting.
States and Union Territories have been given flexibility to decide on these openings.
Stock Reactions:
- PVR: Shares gained as much as 15% - the most in four months to Rs 1,395.1 - the highest level in a month.
- Inox Leisure: Shares gained as much as 17.6% - the most since August 2011 to a seven-month high of Rs 318.2.
- Chalet Hotels: Shares gained as much as 4.8% to Rs 145.
- Taj GVK Hotels: Shares gained as much as 7.5% to Rs 154.55 and are trading at the highest level in a month.
- Lemon Tree: Shares gained as much as 4.8% to Rs 29.25.
Coronavirus India Update
- Number of confirmed cases rise for the second straight day
- 86,821 new cases reported in the last 24 hours
- Total confirmed cases at 63,12,584
- Active cases at 9,40,705
- Patients cured / discharged / migrated at 52,73,201
- Death toll rises to 98,678
- 1,181 deaths reported in the last 24 hours
- 85,376 patients recovered in the last 24 hours
September Auto Sales: Escorts & Bajaj Auto
Escorts:
The tractor maker reported a 9.2% growth in overall sales for the month of September on a year-on-year basis. Overall sales rose to 11,851 units in the month of September.
Domestic sales rose 8.9% year-on-year to 11,453 units while exports rose 19.2% to 398 units.
Management Commentary From Escorts:
- Registered highest ever September sales
- Rural demand continues to remain positive
- Currently operating close to peak capacity
- Remain optimistic for the coming festive season
- Trying to ramp-up production and supply to meet excess demand
Shares fell as much as 3.1% to Rs 1,276.9, post the announcement. The stock has snapped a four-day gaining streak.
Bajaj Auto’s Sales:
The two and three-wheeler maker reported a 10% growth in overall sales for the month of September as compared to the previous year.
Overall sales rose to 4,41,306 units, the company said in an exchange filing.
Domestic sales rose 6% to 2,28,731 units while exports were the highest ever, rising 14% year-on-year to 2,12,575 units.
The company's domestic two-wheeler sales rose 24% to 2,19,500 units while exports of two-wheelers too were the highest ever at 1,85,351 units - a growth of 16% from the previous year.
Shares gained as much as 4% to Rs 2,994. The stock has snapped a two-day losing streak.
Opening Bell: A Strong Start
Indian equity markets have begun the new month on a positive note, opening with gains, in-line with the strong cues from Wall Street.
The S&P BSE Sensex opened 0.9% higher at 38,410 while the NSE Nifty 50 index opened at 11,364, up 1%. Both benchmark indices were up 2% for the truncated week, as of closing on Wednesday.
All sectoral indices have opened with gains. The Nifty Media index is the top gainer, opening with gains of 3.6%. Other indices like Nifty Bank, Nifty FMCG, Nifty Auto and Nifty Metal have opened with gains of over 1%.
Broader markets are in-line with benchmarks at the start of trade. The Nifty Midcap index is up 0.8% at the start of trade while the Smallcap index has gained 1.3%.
Market breadth is in favour of the gainers. 1,111 stocks on the National Stock Exchange have opened with gains while 324 are declining.
Trading Strategies For The Day
- Nifty: Sell 11,250 Put of today's expiry in the range of Rs 35-36 for target of Re 1 and stop loss of Rs 47
- Nifty Bank: Buy in the range of 21,500-21,550 for target of 21,650-21,750 with stop loss of 21,400
- Buy Apollo Tyres October futures for target of Rs 132 and Rs 134.6 with stop loss of Rs 128.3
- Sell Tata Steel October Futures at Rs 365 for target of Rs 360.2 and Rs 352.3 with stop loss of Rs 370.8
- Apollo Tyres and Tata Steel are Intraday recommendations
Source: ICICI Direct
How Did The Fund Flows Fare On Wednesday
Key Stocks In Focus
- Reliance Industries: Silver Lake to invest an additional Rs 1,875 crore in Reliance Retail Ventures. This is the second investment made by Silver Lake in RRVL. The aggregate investment made by Silver Lake in RRVL now stands at Rs 9,375 crore for a 2.1% stake.
- The government has cut prices of natural gas by 25% to $1.79 mmBtu. The new prices are effective today and are the lowest in a decade. The new price for natural gas produced from domestic fields will be valid for six months, starting today. Gas ceiling price for difficult fields with high pressure and high temperature set at $4.06/mmBtu. Watch out for stocks like ONGC & Oil India along with City Gas Distributors like Indraprastha Gas, Mahanagar Gas and tiles companies like Kajaria.
- Lupin: Launched the Lapatinib Tablets, after the company's alliance partner Natco Pharma received final approval for its ANDA from the U.S. FDA. The drug is used primarily for the treatment of certain types of breast cancer. The drug had sales of $61 million in the U.S. Market as per IQVIA data till June 2020.
- MOIL: The price of all grades of Ferro, SMGR grades, fines and Chemical grades have been raised by 7.5% as compared to the previous month. The new prices take effect today.
- Punjab National Bank: Reported a borrowal fraud of Rs 1,203.26 crore in the NPA account of Sintex Industries. Bank has already made provisions worth Rs 215.21 crore, as per prescribed prudential norms.
- Listing Today: Chemcon Specialty Chemicals, CAMS
To know more about the key stocks in focus, brokerage updates and F&O cues, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
Ending On A High?
Good Morning!
Today is the final trading day of the truncated week for India's equity markets, as well as first day of the October-December quarter.
The benchmarks ended the June-September period with gains of over 9% — their second straight quarterly advance.
So far this week, the Sensex and Nifty 50 have risen more than 2%. Futures are indicating that the indices are poised to extend their weekly advance. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was rose 0.9% to 11,357 as of 7:55 a.m. on Thursday.
The street will watch out for automakers reporting their sales figures for September, listing of Chemcon Specialty Chemicals and Computer Age Management Services and manufacturing PMI data for September.
Globally, equity trading halted in Japan this morning on account of the biggest technical system issue in over a decade. Markets in Australia are trading with gains, while those in China, Hong Kong, Taiwan and South Korea are shut on account of a holiday.
Indian markets, too, are closed on Friday on account of Gandhi Jayanti.
Futures on the Dow Jones are trading higher by 170 points. The index ended 1.2% higher on Wednesday.
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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