Sensex, Nifty Close At Record; Power Grid, Tech Mahindra Advance
India’s stock benchmarks closed at record, led by the gains in power, utilities, technology and banking stocks. Small and midcap stocks rebounded after the weakness in previous session. Focus shifts to macroeconomic data as investors eyed July retail inflation and June industrial production data, due later in the day, to gauge the extent and trajectory of economic recovery.
The S&P BSE Sensex gained 0.58% to 54,843.98, a record close for the 30-stock index which hit a new high of 54,874.10 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to close at a record 16,364.40. The 50-stock index had hit a high of 16,375.50 in intraday trade.
The broader indices recovered after yesterday’s slide and outperformed their larger peers with S&P BSE MidCap adding over 1% and S&P BSE SmallCap gaining nearly 2%. Barring S&P BSE Energy, all the sectoral indices compiled by the BSE Ltd advanced, led by S&P BSE Utilities rising 3% and S&P BSE Power which added over 2.5%.
The market breadth was skewed in favour of the bulls. About 2,361 stocks advanced, 842 declined and 123 remained unchanged.
"Barring pharma, most key sectoral indices traded in green today, while meaningful correction in quality midcap and smallcap stocks attracted investors today in these spaces. Given sharp improvement in key economic indicators like GST collection, auto sales volume despite supply disruption and other high frequency indicators like e-way bills in July indicate sustainable rebound in corporate earnings in subsequent quarters. This should aid market to sustain premium valuations", Binod Modi, Head Strategy at Reliance Securities wrote in a note.
S&P BSE Utilities: Top Sectoral Gainer
India's major stock benchmarks are set for a record close with broad-based gains. Barring S&P BSE Energy, all the other sectors advanced with S&P BSE Utilities gaining over 3%. All the constituents of the Utilities index rose with Nava Bharat Ventures and Power Grid Corporation adding the most.
Oil India Q1 Net Income Beats Estimates
Oil India Ltd. reported net income for the first quarter that beat the average analyst estimate.
June Quarter Results (Standalone)
Net income at Rs 507.94 crore vs estimate of Rs 429 crore (Bloomberg Consensus)
Revenue at Rs 3,006.99 crore vs estimate of Rs 3,020 crore
Total costs at Rs 2,393.41 crore vs Rs 2,699.32 crore QoQ
Other income at Rs 63.79 crore vs Rs 1,330.11 crore QoQ
Shares of Oil India pared over 4% gains post the Q1 numbers. Of the 20 analysts tracking the company, 14 maintained ‘buy’, 3 maintained ‘hold’ and 3 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.4%
Coal India Plans 3 GW Solar Generation Capacity By FY24
Coal India Ltd. plans to have 3 GW of solar power generation capacity by March 2024, part of efforts to reduce its carbon footprint, exchange filings by the company showed.
Coal India is currently building 455 MW of solar projects, including a 100 MW facility it won in an auction.
Company plans to raise annual coal output to 1 billion tons by FY24.
India’s coal demand could reach 1.5 billion tons by 2030, if power consumption grew by 8% per year from now.
Coal India had identified 23 mines for closure in FY21, out of which 12 mines have been shut down.
Future Group To Pay Missed Bond Coupon: Report
Indian groceries-to-fashion conglomerate Future Group has assured lenders that a unit that missed a $14 million bond coupon payment will pay the obligation before the grace period ends later this month, according to a Bloomberg report.
Future Retail Ltd., the nation’s second-largest supermarket chain, had missed the dollar note interest payment due July 22, citing an adverse impact from the pandemic.
The firm had said then that it would seek to make the payment within the grace period of 30 days allowed by the bond rules.