Sensex, Nifty Snap Three-Day Winning Streak As I.T., Realty Stocks Drag

India's stock benchmarks snapped a three-day winning streak after fluctuating between gains and losses in a volatile session, as losses in I.T. and realty stocks offset the gains in consumer durables and telecom stocks.

The S&P BSE Sensex closed little changed at 58,279.48. The 30-stock index rose to a record 58,553.07 in intraday trade. The NSE Nifty 50 declined 0.09% to 17,362.10. The 50-stock index hit a record 17,436.60 in intraday trade. Infosys Ltd. contributed the most to the index decline, decreasing 1.4%. Sun Pharmaceutical Industries Ltd. had the largest drop, falling 1.8%. Today, 31 of 50 shares fell, while 19 rose.

The broader indices underperformed their larger peers with the S&P BSE MidCap shedding 0.2% and S&P BSE SmallCap slipping 0.42% respectively. Thirteen out of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Realty falling over 2%. On the flipside, S&P BSE Telecom rose over 3%

The market breadth was skewed in favour of bears. About 1,332 stocks advanced, 1,844 declined and 142 remained unchanged.

Shares of Thomas Cook India advanced 4.6% to Rs 64.85 apiece after the company and its group company SOTC have introduced Bike Trips to cater to the growing interest for non-standard holidays. The 5-12 night trips traverse terrains in Manali, Leh, Srinagar, Silliguri, Gangtok, Jaipur, Jodhpur, Jaisalmer, Udaipur, Bengaluru, Madikeri, Ooty among other places. The prices start from Rs 24,990 per person.

• SIS Ltd. is higher for the 12th straight day, on track for the longest winning streak since the company went public on Aug. 10, 2017.

• SIS Ltd has gained a total of 13% during the streak. Today, the stock rose 1.38% to Rs 488.30 apiece.

• All the nine analysts tracking the company maintained 'buy' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.9%

India’s rupee slid by the most in more than six weeks amid potential slowing down of share-sale related inflows and importers hedging, according to Tushar Sharma, vice president for FX trading at RBL Bank in Mumbai.

• The rupee fell 0.5% to 73.4325 against the dollar, the most since July 19; advanced ~1.86% against the dollar in the two weeks to Sept. 3

• “The downside momentum for USD/INR ran out of steam,” says Sharma “It is a mix of supply of dollars running out and importers looking to hedge at these levels”

• TVS Motor Co. is higher for the eighth straight day, on track for the longest winning streak since the period ended Dec. 26, 2012.

• TVS Motor has gained a total of 8.3%t during the streak while the S&P BSE Sensex Index increased 4.4%. Today, the stock rose 1.33% to Rs 553.70 apiece.

• Of the 41 analysts tracking the company, 24 maintained 'buy', six maintained 'hold' and 11 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 13.4%.

• A group of top government officials will be meeting Thursday to discuss India's strategy on leasing out state-owned infrastructure assets to private investors.

• The officials are likely to discuss asset monetization in eight sectors out of the 13 identified, including telecom and roads.

• The meeting, to be headed by Cabinet Secretary Rajiv Gauba comes two weeks after FM Nirmala Sitharaman unveiled asset monetization plan to fund new capital expenditure without straining government finances.

• Another meeting of the core group on asset monetization will be held on September 13

Source: People familiar with the matter

Balaji Telefilms Ltd.’s shareholders rejected proposals on salary to be paid to Managing Director Shobha Kapoor and Joint Managing Director Ekta Kapoor. The Kapoor family founded the company in 1994.

The company’s board had approved a basic salary of Rs 2.4 crore each for two years starting November 10, to Ekta and Shobha Kapoor, but the resolutions failed to pass muster at the annual shareholder meeting.

Edelweiss Asset Reconstruction Company Ltd (EARC), a subsidiary of Edelweiss Financial Services Ltd. received the approval of the RBI for conversion of the Compulsorily Convertible Preference Shares (CCPS) held by CDPQ Private Equity Asia in EARC. CDPQ Private Equity Asia will become a sponsor of EARC as per regulations.

In an exchange filing, Edelweiss Financial Services said that 3,32,00,000 Compulsorily Convertible Preference Shares of Rs 10 each held by CDPQ Private Equity Asia was converted into 5,26,31,579 equity shares of Rs 10 each of the company. With this conversion, CDPQ now holds 20% of the total paid up equity share capital of Edelweiss Asset Reconstruction Company.

Shares of LIC Housing Finance Ltd. rose 3.46% to Rs 418.80 apiece after the company announced strategic partnership with India Post Payments Bank (IPPB) to provide home loan products to over 4.5 crore customers of IPPB.

In an exchange filing, LIC Housing Finance said that the robust and extensive network of 650 branches and over 1.36 lakh banking accessing points of IPPB will make the home loan products more accessible for customers pan-India.

LIC Housing Finance offers home loan starting from 6.66% for loans up to Rs 50 lakh for salaried individuals. The rate of interest offered is linked to the borrower’s creditworthiness, as reflected by their CIBIL scores.

Of the 41 analysts tracking the company, 22 maintained ‘buy’, 9 maintained ‘hold’ and 10 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.1%.

Dr. Reddy’s Laboratories Ltd. announced the launch of prescription drug Minoxidil topical solution USP 2% and 5% for the treatment of female pattern hair loss (FPHL). In an exchange filing,the company said it will set its products under the brand names Mintop 2% and Mintop Eva 5% respectively.

The launch comes after the first ever approval by Central Drugs Standard Control Organisation (CDSCO) for the use of Minoxidil topical solution.

Shares of ABB India Ltd. advanced 2.55% to Rs 1,899.00 apiece after the company said that it played a key role in the clean room infrastructure of Bharat Biotech, India’s first indigenous Covid-19 vaccine manufacturer.

In an exchange filing, ABB India said that its ACS560 drives played a key role in clean room infrastructure of Bharat Biotech, where the company manufactures Covaxin.

ABB India said that inbuilt application functions of ACS450 helped in maintaining right environmental conditions at the vaccine manufacturing facility.

Of the 31 analysts tracking the company, 14 maintained ‘buy’, 8 maintained ‘hold’ and 9 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9.6%

Shares of Neogen Chemicals Ltd. advanced 16.22%, the most in over six months, to Rs 1,125.15 apiece after the company commenced Phase 1 commercial production/operations to manufacture organic chemicals at the new plant located at Dahej SEZ in Gujarat.

• Neogen Chemicals manufactures bromine-based chemical compounds used in agricultural and pharmaceutical industries.

• Trading volume was 4.9 times three-month, full-day average.

• Of the five analysts tracking the company, four maintained ‘buy’ and one maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 4.7%.

India's stock benchmarks rose in a volatile session, aided by gains in consumer durables and telecom stocks, amid mixed global cues.

The S&P BSE Sensex rose 0.22% to 58,427.48. The NSE Nifty 50 advanced by similar magnitude to 17,408.40. Housing Development Finance Corp. contributed the most to the index gain, increasing 1.8%. Bharti Airtel Ltd. had the largest increase, rising 3.4%.

The broader indices underperformed their larger peers with the S&P BSE MidCap remaining largely unchanged and S&P BSE SmallCap shedding 0.2%. Twelve out of the 19 sectoral indices compiled by the BSE Ltd. decline, with S&P BSE Realty declining 1.75%. On the flipside, S&P BSE Telecom index added 3.4% and S&P BSE Consumer Durables index rose 1%

The market breadth was skewed in favour of bears. About 1,319 stocks advanced, 1,703 declined and 150 remained unchanged.

• Shares of IRCTC Ltd. added 7.30%, the most in seven weeks, to Rs 3,228 apiece. Trading in the company's call options was double the average.

• Trading volume was 5.31 million shares, quadruple the 20-day average of 1.46 million shares for this time of the day.

• The Relative Strength Index on the stock was above 70, indicating it may be overbought.

• IRCTC trades at 86 times its estimated earnings per share for the coming year.

• Analysts have eight 'buy', one 'hold' and no 'sell' recommendations on the stock.

Shares of Vodafone Idea Ltd. advanced nearly 14% to Rs 8.25 apiece. The company shared the annual report for FY21 with the bourses ahead of the market open.

Vodafone Idea said that it has made significant investments in 4G and continued to expand the coverage and capacity further. The company expressed disappointment at the Supreme Court verdict on the AGR dues case, but remained hopeful of government support to the telecom industry to address structural issues faced by the sector.

Of the 21 analysts tracking the company, 5 maintained ‘hold’ and 16 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 38.6%.

Tata Communications Ltd. and Telekom Malaysia Berhad have entered into a collaboration to offer stable, high speed and reliable connectivity in the ASEAN region and open access to global enterprises.

In an exchange filing, Tata Communications said that the collaboration will enable service providers, mobile network operators and internet service providers to address data connectivity needs of customers by providing access to a global Tier 1 Internet Protocol network. This is expected to be positive for sectors like e-commerce, online entertainment, retail, online banking and delivery services.

Tata Communications will expand its IPT service coverage leveraging Telekom Malaysia’s data centre, connectivity and infrastructure in Malaysia.

Shares of Tata Communications added 1.6% to Rs 1,387.70 apiece. Of the nine analysts tracking the company, seven maintained ‘buy’ and 2 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14%.

• Birlasoft Ltd. and California-based Freshworks Inc announced global, strategic partnership to help enterprises in providing enhanced customer experience management services through new-age digital transformation solutions.

• In an exchange filing, Birlasoft said it remained committed to bringing digital-first solutions and improve end-use experience in their offerings.

• Shares of Birlasoft added 1.5% to Rs 415.70 apiece.

• All the 7 analysts tracking the company maintained ‘buy’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of over 20%

Most yields along the India sovereign yield curve rose, with 3-year bonds moving the most in Tuesday morning trading.

• The 1-year yield fell 0.7bps to 3.86%

• The 10-year yield rose 1.6bps to 6.189%

• The 14-year yield rose 1.3bps to 6.712%

• The 1-year-10-year yield spread was 232.9bps, vs previous close 230.7bps

• The NSE Nifty 50 Index fell 0.3%

• Shares of Voltas Ltd. added over 5.7% to Rs 1,187.15 apiece.

• Trading volume was 2.84 million shares, quadruple the 20-day average of 6,64,691 shares for this time of day.

• The relative strength index on the stock was above 70, indicating it may be overbought.

• Shares of Voltas have risen for the eighth consecutive session.

• Voltas trades at 60 times its estimated earnings per share for the coming year.

• Analysts have 26 'buy', 10 'hold' and six 'sell' recommendations on the stock.

Larsen & Toubro Ltd. has bagged a significant order (value in the range of Rs 1,000-2,500 crore) for its Water & Effluent Treatment business in India.

• According to exchange filing by L&T, the order was from a state-utility organization to implement rural water supply projects providing Functional House Tap Connections (FHTC) under the Jal Jeevan mission.

• L&T has been entrusted to implement rural water supply projects to provide potable water to 800 villages.

• Shares of L&T reversed losses and rose 0.57% to Rs 1,703.90 apiece. Of the 44 analysts tracking the company, 42 maintained ‘buy’, 1 maintained ‘hold’ and 1 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.2%.

Shares of Starteck Finance Ltd. rose 5% to Rs 124.95 apiece after the company approved the sale of 100% shares of Starteck Housing Finance Pvt Ltd., a wholly owned subsidiary to Paripurna Trust and/or Matrabhav Trust, for a cash consideration of Rs 11.45 crore. Paripurna Trust and/or Matrabhav Trust is a part of the promoter group of Starteck Finance.

In an exchange filing, Starteck Finance said that Startech Housing Finance would cease to be its subsidiary upon completion of this transaction. The sale shall be executed within 2-3 weeks, subject to the approval of shareholders in AGM).

Shares of VST Tillers Tractors Ltd. advanced over 7.5% to a 52-week high of Rs 2,843.80 apiece after the company entered into an agreement with Export Trading Group for distribution of tractors, power tillers and engines in the South African markets including South Africa, Namibia, Botswana, Zimbabwe, Swaziland, and Zambia. Export Trading Group is a global conglomerate that operates an established automotive and farm equipment distribution business in Southern African region.

Of the four analysts tracking the company, three maintained 'buy' and one maintained 'hold' recommendation.

The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.5%

Shares of Panacea Biotec Ltd. climbed 10% to Rs 324 apiece after the company announced the supply of 1^st shipment out of 1 million doses of the second component of Russian Sputnik V coronavirus vaccine manufactured by the company for sale in India.

This is the first batch of the second component produced and supplied by the company in India, with the manufacturing of doses taking place in Himachal Pradesh after the company received clearance from Central Drug Laboratories (CDL), Kasauli on August 31.

The batch will be distributed in India through a partner of RDIF (Russian Direct Investment Fund) and Panacea Biotech –Dr. Reddy’s Laboratories, according to an exchange filing by Panacea Biotec.

Trading volume on the stock was 4.6 times the 30-day average for this time of the day.

JSW Steel reported crude steel output for August of 1.38 million tonnes vs. 1.32 million tonnes YoY.

• Average capacity utilization at 92% in Aug.

• Aug. rolled long products output at 3,01,000 Tonnes, up 30% YoY

• Aug. rolled flat products output at 899,000 Tonnes, down 8% YoY

  • Rolled flat products output lower due to a planned shutdown for one of the converters at Vijayanagar works

Shares of JSW Steel added 1.62% to Rs 697.80 apiece. Of the 32 analysts tracking the company, 18 maintained 'buy', 9 maintained 'hold' and 5 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.5%. Shares of JSW Steel rose 80.9% in 2021 so far compared to 22.9% for Sensex.

• Shares of Jindal Steel & Power Ltd. added 2.32% to Rs 399.35 apiece after the company’s steel sales volume in the month of August rose 6% month-on-month to 7.1 lakh tonnes.

• Exports continued to aid sales as the share of exports increased 42%.

• Monthly production rose 6% YoY to 6.6 lakh tonnes.

• Inventory levels continue to decline as sales volume surpassed production for the second consecutive month.

• Of the 26 analysts tracking the company. 23 maintained ‘buy’, 2 maintained ‘hold’ and 1 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 39.6%.

India’s total vehicle retail sales in August was 1.38 million units compared with 1.21 million last year, the Federation of Automobile Dealers Associations says in an emailed statement.

• Total vehicle retail sales were still 14.8% lower from 2019, mainly due to decline in two- and three-wheeler sales from pre-pandemic levels

• Passenger vehicle retails at 253,363 units in Aug., up 38.7% YoY

  • Two-wheeler sales +6.7% YoY at 976,051 units

  • Tractor +5.5% YoY at 71,737 units

  • Trucks & buses +97.9% YoY at 53,150 units

• The group warns of a “lackluster” festive season sales, especially for passenger vehicle dealers, as inventory levels continue to dip due to non-availability of the fast-moving variants

• Shortage of chips has become a “full-blown crisis with no light in sight,” the group says

• Near-term outlook for auto sales in India remains a mixed bag

  • PVs witnessing demand-supply mismatch and 2W facing a demand crunch.

Shares of Dish TV India Ltd. rose over 12%, the most in three weeks, to Rs 15.45 apiece.

• The rise comes after YES Bank, which holds 25.63% stake in Dish TV India, sought the removal of five directors in the company, including Managing Directior Jawahar Lal Goel.

• YES Bank has given a special notice under Section 169 of the Companies Act, 2013.

• Current board of directors of Dish TV India approved rights issue process despite the objections solely to dilute its shareholding and to prejudice the interests of the bank: YES Bank

Shares of Dish TV India witnessed price volatility of 63.8% over the past year compared to 46.3% (company average).

India's stock benchmarks opened higher, aided by gains in FMCG, power and metal stocks, amid mixed global cues.

The S&P BSE Sensex rose 0.12% to a 58,369.35. The NSE Nifty 50 advanced by similar magnitude to 17,401.60.

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.2%. Fourteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE FMCG adding 0.7%.

The market breadth was skewed in favour of bulls. About 1,217 stocks advanced, 865 declined and 108 remained unchanged.

• August Total Vehicle retails rise by 14.48% YoY, to 13.8 lakh units

• August Passenger Vehicle retails up 38.7% YoY, to 2.53 lakh units

• India auto sales near term outlook remains a mixed bag

Source: FADA

• Vivimed Labs Ltd. approved enabling resolution to raise Rs 250 crore through issue of equity shares.

• In an exchange filing post market hours Monday, Vivimed Labs said that it will issue up to 4.25 crore warrants to promoters/non-promoters, which will be convertible to equivalent number of equity shares of Rs 2 each and will be issued at a price of Rs 25.

• Jindal Steel & Power Ltd. reported a 6% month-on-month increase in steel sales volume to 7.1 lakh tonnes in August. Exports continue to aid sales as the share of exports rose 42%, the company said in an exchange filing.

• Monthly production rose 6% YoY to 6.6 lakh tonnes.

• Inventory levels continue to decline as sales volume surpassed production for the second consecutive month.

• VR Sharma, managing director of JSPL said that the company remained hopeful of a rebound in domestic demand once the monsoon season got over. He also expected the government’s infrastructure push to aid growth momentum for steel players.

Healthium Medtech Ltd. seeks to raise as much as Rs 390 crore ($53.4 million) selling new shares in an initial public offering, while its holders plan to sell as many as 39.1 million shares, according to its draft prospectus filed with the markets regulator.

• An affiliate of Apax Partners will sell 39 million shares in the Bengaluru-based medical devices maker; another shareholder Mahadevan Narayanamoni will sell up to 100,000 shares

• The Apax affiliate owns 97.55 million shares, or a 99.8% stake, in Healthium

• ICICI Securities, CLSA India Pvt., Credit Suisse and Nomura are the banks managing the IPO

Indian bonds may extend Monday’s losses as the central bank announced plans to drain excess liquidity from the banking system. Traders will also look forward to Rs 14,730 crore ($2b) of debt sales by the state governments. 

• 10-year yields rose 1bps to 6.17% on Monday; the yield on 5.63% 2026 bonds climbed 2bps to 5.60%.

• The Reserve Bank of India will drain Rs 50,000 crore ($6.8 billion) via seven-day variable-rate reverse repo or VRRR on Tuesday; RBI is already scheduled to conduct a 14-day reverse repo worth Rs 3.5 lakh crore on Thursday as part of its program announced early August, taking liquidity withdrawal operations to as high as Rs 4 lakh crore by end of September.

• USD/INR rose 0.1% to 73.1050 on Monday.

• Global funds sold net Rs 589 crore of Indian stocks Monday: NSE.

• Global funds sold Rs 125 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 360 crore of corporate debt.

• State-run banks bought Rs 1,470 crore of sovereign bonds on September 6: CCIL data

• Foreign banks bought Rs 789 crore of bonds.

Asian stocks were bolstered on Tuesday by a further rally in Japan, with traders also weighing the outlook for central bank stimulus support and the impact of the delta virus strain on economic reopening.

Japan’s Nikkei 225 hit 30,000 for the first time since April. Equities slipped in South Korea but were steady in Australia. S&P 500 and Nasdaq 100 futures advanced ahead of a resumption in U.S. markets after a holiday. Treasury yields climbed and dollar dipped.

India’s SGX Nifty 50 Index futures for September delivery were little changed at 17,425.00, while MSCI Asia Pacific Index +0.4%. The NSE Nifty 50 Index gained 0.3% on Monday to 17,377.80.

In China, traders will monitor trade data for guidance on the state of the economy. Australia is due to revisit the question of whether to delay a planned taper of bond purchases as lockdowns sap the nation’s recovery.

Oil extended losses amid Saudi Arabia’s price cut for Asian buyers and demand threats from the outbreak of the delta virus variant.

Back home, Nuvoco Vistas may react as the company reported quarterly results after the market closed on Monday. Foreign investors sold net Rs 635 crore of stocks on Sept. 3, according to NSDL website.