Sensex, Nifty Scale New Records For Third Day On Banking, FMCG Gains
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
KEY HIGHLIGHTS
Closing Bell
India's stock benchmarks closed at record highs for the third consecutive session aided by gains in banking, fmcg and energy stocks.
The S&P BSE Sensex rose 0.71% to 59,141.16, a record close for the 30-stock index. This is the first time Sensex crossed above 59,000 mark. The 30-stock index hit a record 59,204.29 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to 17,629.50, a record close. The 50-stock index also logged a record 17,644.60 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 2.1%. IndusInd Bank Ltd. had the largest increase, rising 7.3%. Today, 26 of 50 shares rose, while 24 fell.
Banking stocks rose ahead of Finance Minister Nirmala Sitharaman’s address scheduled later today. Several reports said that announcement of bad bank is likely in the address. The NSE Nifty Bank logged a record 37,720.15 in intra-day trade.
The broader indices underperformed larger peers with the S&P BSE MidCap adding 0.5% and S&P BSE SmallCap closing little changed. Twelve of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Bankex index gaining over 2%.
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The market breadth was skewed in favour of bulls. About 1,677 stocks advanced, 1,592 declined and 156 remained unchanged
"A strong rebound in FIIs flow in last three days (bought over Rs 3,200 crore equities in two days) augured well, which led Nifty to record fresh all-time high. Unlike developed markets, faster ramp-up in vaccination process and relatively lower daily caseload offer India an edge over other markets and therefore domestic bourses are resilient despite pressure in global equities", Binod Modi, Head Strategy at Reliance Securities wrote in a note before adding that the "liquidity driven market may take a backseat in 2022 and investors must start focusing on quality aspect of companies".
NSE Nifty Bank Index Hits Record High
The NSE Nifty Bank logged a record 37,720.15 in intra-day trade.
The previous record level for Nifty Bank was 37,708.75 on Feb 16, 2021.
TVS Motor Launches 'TVS Raider' Motorcycle
Shares of TVS Motor Company Ltd. rose 1% in intraday trade to Rs 554 apiece before paring gains after the company announced the launch of TVS Raider in the 125 cc segment. The launch is targetted at young customers in India and across the world. The vehicle has first-in-class features like reverse LCD digital speedometer, optional 5-inch TFT cluster with Voice Assist and multiple ride modes, the company said in an exchange filing.
Starting at a price of Rs 77,500 (ex-showroom, Delhi), TVS Raider will come in a colour selection of red, blue, black and yellow.
Of the 42 analysts tracking the company, 24 maintained 'buy', 6 maintained 'hold' and 12 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.3%
India's DGTR Recommends Anti-Dumping Tax On Some Steel Imports
India’s Directorate General of Trade Remedies has proposed the extension of anti-dumping duties on some steel products imported from China, Japan, South Korea, Russia, Indonesia, Ukraine and Brazil for 5 more years, according to notifications by the Trade Ministry.
Imports of some cold-rolled and cold-reduced flat steel products originating in or exported from China, Japan, South Korea and Ukraine should attract an anti-dumping tax of $576 a tonne, it said in a circular
A separate circular recommended an anti-dumping duty between $478-$561/tonne on some hot-rolled flat products from China, Japan, South Korea, Russia, Brazil and Indonesia
India’s finance ministry will decide on the final taxes.
Lupin Slips After Agreeing To Pay $248 Million To Settle Lawsuit In The U.S.
Shares of Lupin Ltd. shed 1.6% to Rs 973.60 apiece after the company agreed to settle the lawsuit in the U.S. alleging that the 2012 settlement of patent litigation regarding Glumetza, a drug for diabetes treatment, delayed the availability.
Lupin will pay the plaintiffs of the law suit, $150 million to Direct Purchaser Group and $98 million to the Retailer Opt-Out Group, subject to court’s approval. Lupin said that the settlement will not have a significant impact on the financial position of the company.
Of the 41 analysts tracking the company, 19 maintained 'buy', 7 maintained 'hold' and 15 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.9%.
Nifty Bank Inching Towards Record High
Cholamandalam Financial Advances The Most In Nearly 10 Months; RSI Above 70
Shares of Cholamandalam Financial Holdings Ltd. rose 13.15%, the most in nearly 10 months, to Rs 760 apiece. Trading volume was five times the 30-day average volume at-time for this time of the day.
The relative strength index on the stock was 74, indicating that it may be overbought.
All the three analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 20.9%
Metal Stocks Decline; S&P BSE Metal Index Down 0.8%
Aptech Forays Into EdTech Space With The Launch Of ‘ProAlley.com’; Shares Advance
Shares of Aptech Ltd. rose 4.27% to Rs 307 apiece after the company announced the launch of EdTech segment with its latest brand - ProAlley.com, from today. The brand will reach out to self-paced learners from the comfort of their homes, the company said in an exchange filing. The initial offerings will focus on media and entertainment industry, but the company planned to expand to other segments in future.
With this launch, Aptech has all forms of delivery models in its business model - Offline, Remote, Live and Self-Paced.
ProAlley.com will be funded through internal accruals at present and external funding, when needed in future.
Poonawalla Fincorp Slips After SEBI Curb On Managing Director
Shares of Poonawalla Fincorp Ltd. were locked in 5% lower circuit to Rs 171.90 apiece after markets regulator SEBI restrained eight individuals including the shadow bank’s Managing Director Abhay Bhutada from participating in securities markets over alleged insider trading in the company’s shares in February.
SEBI has also ordered the people, including Bhutada, named in its order to square off their existing positions in derivative contracts within 3 months.
Bhutada denies “all allegations” against him in the SEBI order, and would take “appropriate legal recourse”, Poonawalla Fincorp said in a stock exchange filing late on Wednesday
Other individuals named in the order include Saumil Shah, Surabhi Kishore Shah and Abhijit Pawar
Poonawalla Fincorp, earlier known as Magma Fincorp, was acquired by Poonawalla Group’s Rising Sun Holding Pvt. in February via a preferential allotment of shares
SEBI noticed insider trading alerts in the scrip around the same time the deal announcement was made, the regulator said in its order
The investigation showed that the individuals bought significant number of shares of the company before the deal was announced and subsequently sold those to make “substantial amounts” of profit, SEBI said.
SEBI used call data record provided by telecom service providers and other details related to trading and bank accounts to establish connection between the individuals involved.
SBI Lowers Home Loan Rates For Some Borrowers During Festive Season
Borrowers seeking home loans above Rs 75 lakh would see interest rates starting from 6.7% during festive season
Previously, loans worth Rs 75 lakh and above were charged 7.15%
15 basis point premium charged to non-salaried customers waived off
Processing fee waived off for home loans
Source: SBI statement
PSU Banks Edge Higher, All Constituents Of NSE Nifty PSU Bank Advance
BHEL Successfully Commissions India’s Largest Floating Solar PV Plant, Shares Rise
Shares of Bharat Heavy Electricals Ltd. rose 3.54% to Rs 59.95 apiece after the company successfully commissioned India’s largest floating solar PV plant.
In an exchange filing, the company said that 25 Mega Watt project located at NTPC Simhadri in Andhra Pradesh, will produce power, reduce water evaporation to result in higher yield than conventional ground-mounted projects.
BHEL’s portfolio of floating SPV projects is the largest in the country with more than 45 MW projects commissioned and around 107 MW projects under execution.
Of the 26 analysts tracking the company, 1 maintained ‘buy’, 4 maintained ‘hold’ and 21 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 35.4%.
Ola Electric Sells 60,000 E-Scooters In First 24 Hours
The startup backed by SoftBank and Tiger Global sold about Rs 600 crore worth of e-scooters on the first day, a company representative says.
The unexpected demand means sales will close around midnight Thursday, company says in a blogpost
Ola Electric Mobility Pvt priced its electric scooter at Rs 99,999 ($1,348) in an attempt to crack the affordability barrier for electric two-wheelers in value-conscious India. Led by Bhavish Aggarwal, the e-mobility business is a follow-up to ride-hailing startup Ola and is building the world’s largest two-wheeler factory.
Saregama India Approves Raising Up To Rs 750 Crore; Shares Slip
Shares of Saregama India Ltd. shed 5% in intraday trade to Rs 3,984 apiece after the company approved raising of funds by further issue of securities by way of private placement or preferential issue or public issue, for an aggregate amount of Rs 750 crore. ‘
The company will convene an extra ordinary general meeting (EGM) of shareholders on October 19 to seek their approval for raising of funds.
The company also appointed Deepak Jain as the interim Chief Financial Officer with immediate effect. Deepak Jain will continue in the position till the Chief Financial Officer, who is on medical resume, resumes office.
Rupee Volatility at 3-Week Low on RBI Intervention
A gauge of expected swings in India’s rupee declines to the lowest in three weeks as the central bank reiterated it will continue to intervene in the FX market to smoothen out the volatility.
USD/INR one-month implied volatility falls 4bps on Thursday to 4.30%, a close at the level will be the lowest since Aug. 26
USD/INR steady at 73.4650 after falling 0.3% on Wednesday
FLOW WATCH: Indian govt’s offer to sell up to 10% stake in Hindustan Copper opens to non-retail investors
Lenders To Indian Telecoms Gain As Sector's Govt Dues Deferred
Indian lenders with exposure to the telecom carriers gain after a moratorium was approved on the service providers’ dues to the government, which improves the companies’ cash flows and ensures the near-term survival of ailing Vodafone Idea.
Shares of IDFC First rise as much as 5.1%, their biggest single-day gain since Aug. 24
IndusInd Bank gains as much as 12.6%, State Bank of India +2.3%, Yes Bank +11%
IDFC First had Rs 3,240 crore of exposure to one large telecom company as of June; the loan was marked as stressed and the lender provided 15% against the outstanding, according to its quarterly presentation
Mid-Day Market Update: Sensex Crosses 59,000 For The First Time; RIL Leads Advance
India's stock benchmarks advanced to record highs, aided by I.T., telecom, banking, energy, fmcg stocks, as they shrugged off the mixed global cues.
The S&P BSE Sensex rose 0.47% to 58,998.72. The 30-stock index had hit a record 59,010.54 in intraday trade, the first time it crossed 59,000 mark. The NSE Nifty 50 also advanced by similar magnitude to 17,586.15. The 50-stock index hit a record 17,591.20 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 2.0%. IndusInd Bank Ltd. had the largest increase, rising 8.5%. In midday trading, 25 of 50 shares rose, while 25 fell.
The S&P BSE MidCap almost mirrored its larger peers adding 0.45% and S&P BSE SmallCap underperformed was it remained little changed. Thirteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Telecom, S&P BSE Bankex, S&P BSE Energy Information technology & S&P BSE FMCG adding over 1%.
The market breadth was skewed in favour of bulls. About 1,675 stocks advanced, 1,483 declined and 130 remained unchanged.
Analysts Prefer Bharti Airtel As The Pick Of The Telecom Sector After Government’s Relief Measures
Jefferies: Duopoly In Telecom Market Still In Play, Bharti Airtel To Gain Market Share
The duopoly in the telecom market is still in play, but a bit delayed, says Jefferies as it noted that the government’s relief measures such as four-year moratorium on AGR and spectrum usage dues will offer Rs 25,000 crore annual cashflow relief to Vodafone Idea, improving its chances of survival. The government has allowed telecom companies to pay interest amounts on deferment of payments through equity. According to calculations, the government could own 26% of Vodafone Idea at the end of four-year period.
Jefferies provided rationale for the persistence of duopoly in the telecom market as Vodafone Idea’s financial dues required a quarterly Ebitda of Rs 560 crore for just servicing interest. A 13% fall in Q1FY22 mobile revenue will result in Ebitda falling below the threshold. This is all the more probable as Bharti Airtel looks set to redirect annual cashflow relief towards network investments.
While the survival of Vodafone Idea could delay a tariff hike, it would not hamper Bharti Airtel’s plans to increase market share, as the risk-reward remained favourable. The brokerage firm reiterated ‘buy’ on Bharti Airtel with the target price raised to Rs 850.
Jefferies
Reiterates ‘buy’ on Bharti Airtel with the target price increased to Rs 850 from Rs 645 earlier, an implied return of 16.53%
Bharti’s usage of ~ Rs 11,700 crore annual cashflow relief for capex will accelerate market share shifts in its favour.
Expect Bharti to gain 340 bps market share to 39% over FY22-24 driving 20% CAGR in India mobile Ebitda.
ICICI Securities: Worst Case Scenario Is Vodafone Idea Becoming Majority Owned By Government
ICICI Securities insisted that the government’s measures would significantly reduce the immediate payment burden for Vodafone Idea. The brokerage firm noted that the since the government has the option to convert deferred dues and annual interest on deferred payment into equities, the worst case scenario would be the company, Vodafone Idea, becoming majority owned by government. Highlighting the need for immediate hike in tariffs for Vodafone Idea, ICICI securities noted that Bharti Airtel and Reliance Jio do not have much to gain from the relief pack. But the improvement in spectrum norms such as the extension of useful life to 30 years and fixing spectrum auction calendar would aid the duo.
Sensex Above 59,000 For The First Time
Sensex Hits 59,000 For The First Time Ever
Sensex Hit A Record High 59,010.54 In Intraday Trade
RBI Deputy Governor Michael Patra: Global Recovery Might Be Faltering
Global recovery might be faltering, inflation induced by pandemic-driven disruptions lingering.
Financial markets second guessing pace of normalisations.
Financial markets trying to read inside and outside the lines to time the taper.
This itself is imparting uncertainty to markets.
Indian markets reflect divided views on macroeconomic conditions -- exuberance of equities vs cynicism of bonds.
Growth has improved but remains fragile.
In India, inflation has fallen from peaks but core inflation remains elevated.
Stance of 'as long as necessary' is visible in liquidity of over Rs 9 lakh crore absorbed by the RBI.
Flexible inflation targeting is about protecting growth.
The essence of flexible inflation targeting (FIT) is to protect growth by minimising the sacrifice of output in reducing price pressures
FIT includes dual mandate of inflation and growth.
FIT defines inflation target in averages.
FIT envisages achievement of target over a period of time.
FIT includes a wide band.
FIT defines failure as three consecutive quarters of missing the target.
Michael Patra, RBI Deputy Governor
Dealers To Face Legal Complications From Customers Due To Ford's India Exit: FADA President
Dealers will likely face 'legal complications' given that Indian consumer law makes them liable after a manufacturer exits.
Expect Ford to give some compensation to dealers and plan something in future so that dealers are not in a legal strangle against customers in consumer court cases for their service responsibility.
Dealers invested Rs 2,000 crore ($272 million) building Ford dealerships in India, which employ about 40,000 people.
Source: FADA President Vinkesh Gulati In An Interview To Bloomberg TV
Information Technology Stocks Decline
Easy Trip Planners Rise Nearly 17% On Foray Into The Philippines, Thailand & The U.S.; RSI Above 70
Shares of Easy Trip Planners Ltd. rose 16.67% to Rs 632.79 apiece after the company expanded its international footprint by incorporating wholly-owned subsidiaries in the Philippines, Thailand and the U.S. as part of the phase 2 of the expansion strategy.
In an exchange filing, Easy Trip said that the expansion is done anticipating huge pent-up global demand for travel and tourism sector in the coming months.
The company has already established its presence across UAE, Singapore and the UK to cater to Indians travelling to these countries.
Nishant Pitti, CEO and Co-Founder of Easy Trip said that The Philippines,Thailand and the U.S. represent a significant part of the international holiday package business and expressed hope that the company is set for explosive growth internationally.
The relative strength index on the stock was 79, suggesting it may be overbought
Sansera Engineering IPO Subscription Updates: Day 3
Investors continued to bid for the shares of Sansera Engineering Ltd. on the final day of subscription.
Subscription Updates
The IPO was subscribed 7.04 times as of 3 p.m. on Sept. 16.
Institutional investors: 18.64 times.
Non-institutional investors: 1.83 times.
Retail investors: 2.76 times.
Employees: 1.28 times.
Baring Gathers Eight Banks To Underwrite Hinduja Buyout Loan: Bloomberg
Eight banks have joined to underwrite the private equity firm Baring’s ~$550m 5Y loan to purchase healthcare services unit from Hinduja.
Six more are in the process of joining as sub-underwriters
Source: People Familiar With The Matter
Fitch Ratings Revises Outlook On Shriram Transport Finance To Stable
Fitch Ratings has revised the outlook on Shriram Transport Finance Company Ltd's long-term foreign and local-currency issuer default ratings (IDR) to stable from negative.
The rating has been reaffirmed at 'BB'. In its rating action commentary, Fitch identified resilient credit profile, improvement in operating metrics, steady funding access, capital adequacy, liquidity among others as the reason for the rating upgrade on Shriram Transport.
Dilip Buildcon Receives LoA For Bharatmala Project Worth Rs 1,060 Crore In Andhra Pradesh; Shares Rise
Shares of Dilip Buildcon Ltd. rose 4.46% to Rs 549.90 apiece after the company received letter of acceptance (LoA) for new HAM project - Bangalore Chennai Expressway under Bharatmala in the state of Andhra Pradesh. The bid project cost is Rs 1,060 crores, the company said in an exchange filing.
The project is expected to be completed in 24 months and the operation period is 15 years from COD (date of commissioning).
Of the 13 analysts tracking the company, 10 maintained ‘buy’, 2 maintained ‘hold’ and 1 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.4%
SEBI Chairman At The CII Financial Markets Summit
Indian capital markets has emerged as a credible way for investors and corporates in the last one and a half years.
Market has been touching new highs since March 2020.
In FY 21-22, Indian market has given best returns compared to developing and developed economies.
Individual investor participation has increased leaps and bounds
2019-2020- 4 lakh new monthly demat accounts
2020-2021- 12 lakh new monthly demat accounts
2021- 2022- 26 lakh new monthly demat accounts
Individuals average share in daily cash market turnover which was 39% in 2019-20 has become 45% last year and this year as well.
Holdings of individuals in listed companies has increased from 8.3% at the end of Q1 2019-20 to 9.3% at the end of Q1 2021-22
51-53 lakh SIPs were added during the last two financial years.
Around 59 lakh have been added during the first 5 months of this financial year.
Need to further deepen the domestic individual investor participation.
In 2020, as per one report, around 55% adults in the U.S. had their money in the stock market. In India, the securities market penetration is just about 6.5%
Increase in secondary market turnover - Average monthly equity cash market turnover increased from Rs 8 lakh crore in FY19-20 to Rs 13.70 lakh crore in FY 20-21. And to more than Rs 15 lakh crore in this financial year till now.
We’ve seen an overall increase of more than 90% in equity cash market turnover and more than 270% increase in equity derivatives turnover in the last one and a half years. This has increased the market depth significantly.
Having a robust margining system is a must for ensuring a fair and transparent, reliable trading.
SEBI has progressively strengthened the margining provisions.
Measures have held the trading and clearing system in good stead in the present scenario of tremendous increase in turnover and individual investors’ participation in the market.
SEBI has also improved its surveillance systems
Sustainability reporting and ESG investment: Climate change will affect all of us sooner or later.
While on one hand there is increasing demand for ESG investments and disclosures, on the other hand there are concerns about possible green washing.
We are keenly watching international developments in this area.
We are engaging with the MF industry about disclosing certain broad ESG related parameters in respect of schemes.
AIFs have emerged as another success story.
Last financial year saw 90 new AIFs register with SEBI under different categories.
Total registered AIFs is now more than 700. Cumulative investment by AIFs increased from Rs 1.5 lakh crore to Rs 2 lakh crore; an increase of 33% in a year.
AIFs can be suitable vehicles to channel funds from sophisticated investors, institutions to purchase distressed loans from banks and NBFCs.
This would unlock their capital and make it available for fresh lending. A new sub-category of AIFs can be carved out for this purpose.
SEBI reforms in the pipeline include setting up of a limited purpose clearing corporation for repo and corporate bonds.
Creating a backstop facility to purchase investment grade debt securities in stressed and normal times.
Enabling a set of intermediaries to act as market makers in the bond market.
Having a credit enhancement mechanism to enable lower rated issuers to access the bond market becomes critical.
Another important need is to develop credible credit default swap market to facilitate transfer and management of credit risk in an effective manner.
There’s a need for unification of bond market. It is dominated by government securities.
It’s desirable that it’s unified with corporate bond market where trading, clearing and settlement takes place on one platform backed by a holding structure that provides for frictionless transfer of bond holdings.
Watch Live: SEBI Chairman Inaugural Session: 12th Financial Market Summit
India Short End Cheaper
Shorter-term India sovereign securities declined in Thursday morning trading.
The 4-year yield rose 1.7bps to 5.232%
The 10-year yield fell 0.7bps to 6.156%
The 14-year yield fell 0.5bps to 6.66%
The 4-year-10-year yield spread was 92.4bps, vs previous close 94.9bps
Coal India Slips The Most In Nearly Two Weeks
Shares of Coal India Ltd. shed nearly 2%, the steepest intraday decline in nearly two weeks, to Rs 158 apiece after the company announced plans to offer 15 mines to developers to raise output by a combined 160 million tones per year. The company is also executing 35 connectivity projects, including railway lines, at a total cost of Rs 11,500 crore ($1.6 billion) to help transport 414.5 million tons of a coal a year.
Of the 28 analysts tracking the company, 21 maintained 'buy', four maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.6%.
The relative strength index on the stock was above 70, indicating it may be overbought. Trading volume was 1.7 times the 30-day average volume at-time for this time of the day.
Castrol India Rises The Most In 14 Weeks
Shares of Castrol India Ltd. rose 4.31%, the most in 14 weeks, to Rs 143.90 apiece, higher than any close since July 26.
Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.
Trading volume was five times the 20-day average for this time of the day.
Castrol India trades at 18 times its estimated earnings per share for the coming year.
Analysts have nine 'buy', three 'hold' and two 'sell' recommendations on the stock
Sunteck Realty Climbs After Announcing Project That Will Generate Rs 9,000 Crore Revenue
Shares of Sunteck Realty Ltd. rose 5.52% to Rs 449 apiece after the company announced plan to develop a 50-acre land parcel at Shahad (Kalyan).
The company would develop an aspirational luxury integrated residential township under the asset light JDA model with Amar Dye Chem Ltd. In an exchange filing before market hours Thursday, Sunteck Realty said that it expected the project to generate Rs 9,000 crore revenue over the next 7-8 years, further strengthing the cash flow and balance sheet.
This is the fourth acquisition of highly value-accretive projects by Sunteck since the advent of Covid-19 pandemic, after the project acquisitions at Vasai, Vasind and Borivali.
Trading volume on the stock was 3.5 times the 30-day average volume at-time for this time of the day. The relative strength index on the stock was 77, suggesting it may be overbought.
All the 10 analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.6%
M&M Finance Forays Into Vehicle Leasing & Subscription Biz With ‘Quicklyz’; Shares Rise
Shares of Mahindra & Mahindra Financial Services Ltd. added 1.36% to Rs 175 apiece, after the company announced entry into vehicle leasing and subscription business under the brand name ‘Quiklyz’.
In an exchange filing, the company said that the foray was necessitated by the changing preferences of consumers who want to access vehicles earlier in life and upgrade vehicles at a more frequent rate.
Quicklyz offers consumers access to vehicle of their choice across all car brands for a monthly fee. The price is lower than regular car ownership.
Of the 37 analysts tracking the company, 19 maintained ‘buy’, 11 maintained ‘hold’ and 7 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 0.8%.
Hindustan Copper Slips Nearly 6% As OFS Opens For Non-Retail Investors
Shares of Hindustan Copper Ltd. shed 5.66% to Rs 117.55 apiece after the government planned to sell 10% of equity through an offer for sale. The initial plan is for the sale of 4.83 crore shares or 5% of total equity with a green shoe option to sell another 4.83 crore shares. The floor price is Rs 116 per share.
The OFS opened for non-retail investors today and will open for retail investors tomorrow.
Shares of Hindustan Copper are testing the 200 day moving average support. Trading volume is 4.4 times the 30-day average volume at-time for this time of the day.
BPCL Slips 11% On Dividend Ex-Date
Shares of Bharat Petroleum Corp. Ltd shed 11.10%, the most in over a year, to Rs 435.55 apiece.
The company had announced that the dividend ex-date is today, September 16.
The final dividend is subject to the approval of the shareholders in the AGM on September 27.
Trading volume on the stock was 6.3 times the 30-day average volume at-time for this time of the day.
Of the 37 analysts tracking the company, 35 maintained ‘buy’, one maintained ‘hold’ and one maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.3%
ITC Shares Advance 8%; RSI Above 70
Shares of ITC Ltd. rose 8.08% to Rs 233.45 apiece.
Trading volume was eight times the average for this time of the day.
The relative strength index on the stock was above 70, indicating it may be overbought.
ITC led the gains in the NSE Nifty FMCG index, which is up nearly 2%.
ITC's stock jumps after 1.7 million shares change hands in a large trade.
ITC Ltd. trades at 18 times its estimated earnings per share for the coming year.
Analysts have 28 ‘buy’, nine ‘hold’ and one ‘sell’ recommendations on the stock.
IndusInd Bank Shares Rise The Most In Four Months; RSI Above 70
Shares of IndusInd Bank Ltd. rose 5.22%, the most in four months, to Rs 1,109 apiece, higher than any close since February 25.
Trading volume was 11 times the 20-day average for this time of the day.
IndusInd Bank is the top gainer on the NSE Nifty Bank index.
The relative strength index on the stock was above 70, indicating it may be overbought.
IndusInd Bank trades at 16 times its estimated earnings per share for the coming year.
Analysts have 44 'buy', four 'hold' and two 'sell' recommendations on the stock.
S&P BSE Telecom Index Up Over 1%; Bharti Airtel Shares Little Changed
Bosch India Rises The Most In 17 Weeks; Auto Stocks Advance After PLI Scheme
Shares of Bosch India Ltd. rose 4.63%, the most in 17 weeks, to 15,255 apiece, higher than any close since August 4.
Trading volume was ten times the 20-day average for this time of the day.
Bosch India trades at 37 times its estimated earnings per share for the coming year.
Analysts have two ‘buy’, two ‘hold’ and two ‘sell’ recommendations on the stock.
Bosch India is the top gainer on NSE Nifty Auto index, which has risen after the government announced PLI scheme for the auto sector, focusing on EVs.
Vodafone Idea Rises Nearly 10% After Moratorium Announcement
Shares of Vodafone Idea Ltd. rose 9.5% to Rs 9.80 apiece after the cabinet approved a relief package for telecom industry. The relief package, which includes a freeze on the repayment of AGR dues and spectrum payment dues for four years. The companies opting for it will have to pay an interest at marginal cost of funds rate plus 2% starting from October.
The 4-year moratorium on repayment of dues is expected to free up vital capital for Vodafone Idea Ltd., which is struggling to survive.
An ICRA report released before the government’s announcements Wednesday, estimated a yearly cash flow benefit for about Rs 46,000 crore for the industry from the moratorium.
Of the 21 analysts tracking Vodafone Idea, 5 maintained ‘hold’ and 16 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 47.7%.
Opening Bell: Sensex, Nifty Open At Record Highs; Telecom Stocks Lead Advance
India's stock benchmarks opened at record highs, aided by gains in telecom, metal, auto and banking stocks, amid strong global cues.
The S&P BSE Sensex rose 0.28% to 58,889.50. The 30-stock index hit a record 58,907.78 in intraday trade. The NSE Nifty 50 also advanced by similar magnitude to a record 17,576.90. ITC Ltd. contributed the most to the index gain and had the largest increase, increasing 4.6%. In early trading, 37 of 50 shares rose, while 13 fell.
The broader indices outperformed their larger peers with the S&P BSE MidCap largely and S&P BSE SmallCap gaining 0.6%. Barring S&P Oil & Gas index, all the other 18 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Telecom index adding over 1.3%.
The market breadth was skewed in favour of bulls. About 1,681 stocks advanced, 588 declined and 105 remained unchanged.
Rupee Bonds May Drop as Crude Oil Prices Spike
India bonds may open lower as a sharp spike in crude prices may raise inflation worries in the net oil-importing nation.
FLOW WATCH: Indian govt’s offer to sell up to 10% stake in Hindustan Copper opens to non-retail investors.
USD/INR falls 0.3% to 73.4912 on Wednesday.
10-year yields fell 4bps to 6.16% on Wednesday.
Global funds buy net Rs 233 crore of Indian stocks Wednesday: NSE
They sold Rs 524 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 4 crore of corporate debt.
State-run banks sold Rs 682 crore of sovereign bonds on Sept. 15: CCIL data. Foreign banks sold Rs 521 crore of bonds.
Paras Defence Sets Price Range For Up To Rs 171 Crore India IPO
Paras Defence and Space Technologies Ltd. has set a price range of Rs 165-175 a share for its initial public offering that could raise as much as Rs 171 crore ($23.3 million), according to an advertisement in the Business Standard newspaper Thursday.
The Navi Mumbai-based company, which makes a range of defense and space engineering products at its two plants in Maharashtra, plans to raise as much as Rs 141 crore selling new shares in the IPO.
Its founders and shareholders are selling 1.72 million shares in an offer-for-sale as part of the IPO; founder Sharad Virji Shah is selling 1.25 million shares
Investors can bid for minimum 85 shares of face value Rs 10 each in the sale, which opens Sept. 21 and closes Sept. 23
Anand Rathi Advisors is the sole book running lead manager for the IPO.
Relief Package For Telecom Sector Likely To Aid Vodafone Idea’s Survival
Union cabinet approved a relief package for Telecom sector on Wednesday. The package includes a freeze on repayment of AGR dues and spectrum payment dues for four years. Companies opting for it will have to pay an interest at marginal cost of funds rate plus 2% starting October 1.
India’s moratorium on repayment of telecom sector dues could free up vital capital for operators, especially Vodafone Idea Ltd., that’s struggling to survive.
India Shifts Focus To EVs With Rs 26,000 Crore PLI Scheme
Union cabinet slashed the outlay for PLIs for the auto sector by half to about Rs 26,058 crore and announced incentives worth Rs 120 crore for the drone sector.
Union Minister Anurag Thakur said that the PLI scheme for auto sector will bring fresh investments of over Rs 42,500 crore in five years and increment production of over Rs 2.3 lakh crore.
Here are the two components of the scheme for auto industry
Champion OEM Incentive Scheme, a sales value linked scheme applicable on EVs and hydrogen fuel cell vehicles.
Component Champion Incentive Scheme, a sales value linked scheme for automotive technology components, kits, vehicle aggregates.
Sunteck Realty Plans Luxury Township In Kalyan; Project To Generate Rs 9,000 Crore In 7-8 Years
Sunteck Realty Ltd. plans to develop a 50-acre land parcel at Shahad (Kalyan). The company would develop an aspirational luxury integrated residential township under the asset light JDA model with Amar Dye Chem Ltd. In an exchange filing before market hours Thursday, Sunteck Realty said that it expected the project to generate Rs 9,000 crore revenue over the next 7-8 years, further strengthing the cash flow and balance sheet.
This is the fourth acquisition of highly value-accretive projects by Sunteck since the advent of Covid-19 pandemic, after the project acquisitions at Vasai, Vasind and Borivali.
Lupin To Pay $248 Million To Plaintiffs To Settle The Glumetza Suit In The U.S.
Lupin Ltd. has agreed to settle the lawsuit in the U.S. alleging that the 2012 settlement of patent litigation regarding Glumetza, a drug for diabetes treatment, delayed the availability.
Lupin will pay the plaintiffs of the law suit, $150 million to Direct Purchaser Group and $98 million to the Retailer Opt-Out Group, subject to court’s approval. Lupin said that the settlement will not have a significant impact on the financial position of the company.
SREI Infrastructure CEO Rakesh Bhutoria Resigns Effective September 15
SREI Infrastructure Finance has announced that Rakesh Kumar Bhutoria has stepped down from the position of Chief Executive Officer (CEO) of the company.
In an exchange filing post market hours Wednesday, the company said that Rakesh Bhutoria’s resignation is effective from the close of working hours on September 15. The company will be shortly announcing a replacing for the position.
Bhutoria has stepped down due to “salary payment issues arising out of the Trust and Retention Account” the shadow lender says in its statement.
SGX Nifty Hints At Flat Start; Coal India, Hindustan Copper In Focus
Asian stocks were steady early Thursday amid a climb in energy shares and as some of the anxiety about the recovery from the pandemic eased. Treasury yields held an advance.
Japanese and South Korean stocks fluctuated while Australia rose. U.S. futures were little changed after the S&P 500 posted the biggest jump since August, avoiding a break of its 50-day moving average. The dollar remained lower.
India’s SGX Nifty 50 Index futures for September delivery little changed at 17,534.00, while MSCI Asia Pacific Index -0.4%. The NSE Nifty 50 Index gained 0.8% on Wednesday to 17,519.45.
Oil steadied after rallying on a U.S. report showing a bigger-than-expected decline in crude stockpiles, signaling a tightening market. New Zealand’s dollar and bond yields advanced after economic growth beat estimates.
Chinese stocks listed in the U.S. slid a sixth day and U.S. casino firms with exposure to Macau tumbled. Officials have signaled tighter curbs on operators in the gaming hub, again spotlighting Beijing’s regulatory curbs.
Back home, Indian government’s offer-for-sale for up to 10% stake in Hindustan Copper to non-retail investors opens. EID Parry, Chambal Fertilisers, TV Today are holding their annual shareholders’ meeting. Foreign investors bought net Rs 1,630 crore of stocks on Tuesday, according to NSDL website.