Sensex, Nifty Close At Record High Led By Utilities; Bajaj Twins Worst Performers
India’s key equity benchmarks closed at a record high even as investors assessed the impact of lockdowns on businesses, which have now begun to gradually reopen as the pace of coronavirus infections slows.
The S&P BSE Sensex climbed 0.4% to 52,328.51, helped gains in index heavyweights Reliance Industries Ltd. and ICICI Bank Ltd. Meanwhile, the NSE Nifty 50 Index advanced 0.5% to 15,751.65. Both the large-cap gauges closed at fresh record highs.
The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.78% and S&P BSE SmallCap advanced 1.38%. Sixteen out of the 19 sector indexes compiled by BSE Ltd. advanced, led by a gauge of utilities. The S&P BSE Realty Index slid 0.44%, making it the worst performer.
Restaurant Stocks Rise As Key State Eases Movement Curbs
Burger King India Ltd. is a prominent gainer among restaurant operators after the country’s western state of Maharashtra, which includes Mumbai, rolls out new rules aimed at easing coronavirus-related curbs that were imposed more than a month ago.
- Maharashtra has announced a plan that takes into account the positivity rate in a district, percentage of beds occupied by patients and oxygen requirements among hospitals to decide on allowing resumption of normal activities in cities; the proposed changes are effective today
- Restaurant, hotel and cinema operators gain as revised rules will allow for at least partial resumption of operations in some cities, based on decisions of local administrations
- Burger King rises as much as 6%; most since May 18
- Westlife Development +2.8%, Coffee Day Enterprises +10%, Barbeque-Nation Hospitality +3.6%
- Multiplex operators PVR and Inox Leisure rise as much as 4.25% and 4%, respectively
- Hotel operators gain; EIH up as much as +3.5%, Lemon Tree Hotels +4.4%
Adani Ports, Grasim, NTPC, Tata Consumer in Focus: Options Watch
- Adani Ports options volume 3.3x the 20-day average, with 87,234 calls changing hands vs 22,637 puts
- Stock up 6.1%, volume 2x the 20-day average for this time of day
- Tata Consumer options volume 2.1x the average, with 13,871 calls vs 3,869 puts
- Stock up 1.8%, volume 0.8x the average
- Grasim options volume 2x the average, with 17,699 calls vs 4,678 puts
- Stock up 0.1%, volume 1.1x the average
- UltraTech Cement options volume 1.8x the average, with 18,947 calls vs 5,196 puts
- Stock up 2.7%, volume 1.5x the average
- NTPC options volume 1.6x the average, with 17,565 calls vs 3,813 puts
- Stock up 3.2%, volume 0.8x the average
MRF Q4 Net Profit Misses Estimates
MRF reported net income for the fourth quarter that missed the average analyst estimate.
- Net income Rs 317 crore, -53% YoY, estimate Rs 378 crore
- Revenue Rs 4740 crore, +29% YoY, estimate Rs 4,730 crore
- Total costs Rs 4360 crore, +29% YoY
- Other income Rs 56.53 lakh
- Dividend per share Rs 94
- To pay special dividend of Rs 50/share to mark 60th AGM
Utility Stocks Surge to Record High as Businesses Reopen
Shares of Indian power companies advanced, driving the S&P BSE Utilities Index up as much as 3.2% to a record high intraday, amid optimism that power consumption will recover as businesses gradually reopen from localized lockdowns.
- Top power-consuming states Maharashtra, Uttar Pradesh, Gujarat and Tamil Nadu began easing restrictions on business operations from Monday, in light of the slowing pace of new coronavirus cases
- “Utilities sector trades at P/B of 1.3x, a 32% discount to its historical average,” Motilal Oswal Financial Services Ltd. wrote in June report