Sensex, Nifty Gain For The Third Consecutive Day After Session Of Milestones

India’s equity benchmarks close higher for the third consecutive session marked by milestones, in which both the NSE Nifty 50 and S&P BSE Sensex hit record highs in intraday trade. Gains in power, auto, banking and utility stocks aided the advance.

The S&P BSE Sensex index rose 0.13% to 60,135.78. The 30-stock index hit a record 60,476.13 in intraday trade. The NSE Nifty 50 Index crossed 18,000 mark for the first time in intraday trade, before closing with gains of 0.28% at 17,945.95, a record close for the index. The 50-stock gauge hit a record 18,041.95 in intraday trade. HDFC Bank Ltd. contributed the most to the index gain, increasing 1.9%. Tata Motors Ltd. had the largest increase, rising 8.6%. Today, 33 of 50 shares rose, while 17 fell.

The broader indices almost mirrored their larger peers, with both S&P BSE MidCap S&P BSE SmallCap gaining over 0.5%. Fifteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Utilities, S&P BSE Power and S&P BSE Auto indexes index gaining over 2.5%. On the flipside, S&P BSE Information Technology index shed nearly 3%

The market breadth was skewed in favour of bulls. About 1,958 stocks advanced, 1,473 declined and 161 remained unchanged.

Shares of Alembic Pharmaceuticals Ltd. climbed over 5.51% to Rs 819.8 apiece after the company received Establishment Inspection Report for its new injectable facility at Karakhadi from the U.S. Food and Drug Administration. The USFDA had carried out the inspection at the new facilities between January 28 and February 6, 2021.

In an exchange filing, Alembic Pharma said that the U.S. FDA found the company's responses to their observations adequate. Compliance verifications would be performed by U.S. FDA during reinspection of the facility in the next review cycle.

Ramkrishna Forgings Ltd. reported sequential growth in revenue and net profit in its September quarter numbers

Q2 Results (Standalone)

• Revenue at Rs 578.94 crore vs Rs 417.14 crore QoQ

• Net profit at Rs 50.11 crore vs Rs 24.61 crore QoQ

• EBITDA at Rs 139.18 crore vs Rs 95.32 crore QoQ

• Quarterly EPS for Q2FY22 is Rs 15.68 per share.

• Declared second interim dividend of Rs 0.50 per share.

Source: Exchange Filing.

Shares of ICICI Securities Ltd. rose 6.5% in intraday trade, the most in five months, to Rs 805 apiece.

• Trading volume on the stock was 81% above the 20-day average, for this time of the day.

• ICICI Securities trades at 22 times its estimated earnings per share for the coming year.

• Analysts have nine 'buy', no 'hold' and one 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.8%.

• India is unveiling an absolutely new area of growth with these digital companies for hungry global asset managers.

• A lot of money printed during the Donald Trump administration is invariably finding its way to the stock markets globally and India is one of the beneficiaries.

• Market sentiment accentuated by the Chinese government's regulatory crackdown on its technology companies.

• In the past when asset managers had money to invest, 90% of that went to China due to their growth and consumption story, but now 80% is coming to India.

• Expect old-economy companies partly driving mergers and acquisitions as they sell assets to pare debt.

Srinivas Balasubramanian, Senior Partner & Head of Corporate Finance, KPMG India to Bloomberg TV

Shares of Solar Industries India Ltd. rose 18% in intraday trade to Rs 2,847.9 apiece after the company informed that it received orders worth Rs 1,471 crore from Coal India Ltd. In an exchange filing, the company said that the orders pertained to the supply of bulk explosives over a period of two years.

• GMR Infrastructure Ltd., which is involved in the development and operation of airports, roads and power plants, climbed as much as 14.2% to the highest level since 2011. 

• Company said it will reduce corporate debt to zero, complete the de- merger of its airport business by Dec. and foray into new businesses, according to an investor presentation shared at the stock exchange

• Firm has reduced corporate debt to Rs 4,500 crore from Rs 6,700 crore between Jun’20 and Jun’21

• The presentation didn’t elaborate on timeline for reducing corporate debt to zero

• GMR Infra aims to generate free cash for its airport business in three years and monetize 2,000 acres of real estate; plans to enter tech-enabled consumer business such as energy distribution, smart metering, EV charging and energy trading, it said

• Company has two buys, four holds and no sell recommendations.

Source: Bloomberg

Affle India Ltd. has received issue notification for the grant of two patents from U.S. Patent & Trademark Office. In an exchange filing, Affle said the one patent is related to technology of 'creating decentralized repository of fraud IPs and publishers using Blockchain' and another is related to technology of 'click to install behaviour based detection of fraud'.

With these two patents, Affle has six patents in The U.S. apart from multiple patents pending across India, Singapore and the U.S.

Shares of companies related to India’s power sector rose after the government said the country has sufficient quantity of coal to meet needs of generation facilities. 

Separately, brokerage Jefferies India, said in a note that the current coal shortage should be temporary

Jefferies remains positive on NTPC, Power Grid 

Coal India Ltd. rose as much as 10%, Adani Power climbed as much as 3.1%, Tata Power surged more than 9%, NTPC +4%, Power Grid climbed as much as 9.9%, JSW Energy +2.9%, Torrent Power +7.7%, Reliance Power as much as 5%

Power plants have 7.2 million tonnes of coal reserves that can last four days and Coal India, a supplier to such stations, has a stock of 40 million tons, the coal ministry said on Sunday. Coal dispatches were constrained due to a prolonged monsoon rainfall, it said.

India is ahead of all other major APAC markets this year, and is now set to overtake the U.K. to become the world’s fifth-largest stock market. With roughly 3%-4% away, that’s a milestone that's likely to be achieved soon.

Source: Bloomberg

India's stock benchmarks hit record highs, aided by gains in index heavyweight Reliance Industries Ltd., auto, metal, banking and power stocks.

The S&P BSE Sensex rose 0.62% to 60,432.43. The 30-stock index hit a record 60,442.53 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude and crossed 18,000 mark for the first time. The 50-stock gauge hit a record 18,034.65 in intraday trade. HDFC Bank Ltd. contributed the most to the index gain, increasing 1.4%. Tata Motors Ltd. had the largest increase, rising 9.6%. In midday trading, 40 of 50 shares rose, while 10 fell.

The broader indices almost mirrored their larger peers with both S&P BSE MidCap S&P BSE SmallCap indexes rising over 1%. Sixteen of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Realty index and S&P Auto index rising over 3%

The market breadth was skewed in favour of bulls. About 2,061 stocks advanced, 1,242 declined and 173 remained unchanged

• India’s capital markets regulator has issued an observation letter on the draft prospectus of One MobiKwik Systems Ltd., paving the way for digital wallet and payments startup’s as much as Rs 1,900 crore ($253 million) initial public offering to take subscriptions.  

• Securities and Exchange Board of India also approves IPO filings of SJS Enterprises Ltd. and Skanray Technologies Ltd., according to details updated on the regulator’s website

• Shares of Antony Waste Handling Cell Ltd. rose nearly 7.6% to Rs 377.7 apiece after the company said that the total operating revenue grew 9% QoQ, in its September quarter business update.

• Core operating revenues rose by 33% YoY

• Total tonnage handled grew 12% QoQ while total waste processed in Q2 rose 4% QoQ and 12% YoY.

Shares of Power Mech Projects Ltd. jumped nearly 7% to Rs 1,077 apiece after the company received Letter of Intent worth Rs 448.60 crores. In an exchange filing, Power Mech Projects said that the order worth Rs 391 crore pertained to the operation and maintenance of 2X660 Mega Watt thermal power plant in Tuticorin. Another order worth Rs 57.50 crore was related to miscellaneous civil works for screening plant in Chhattisgarh for NMDC.

Indian bonds fell for a second day after the central bank surprised the markets on Friday by halting bond purchases under its Government Securities Acquisition Programme or GSAP. Higher oil prices and U.S. Treasury yields also weighed on sentiment. The rupee slipped.

10-year yields rise 1bp to 6.33% on Monday after surging by 5bps on Friday

USD/INR rose 0.2% to 75.12

Shares of Prestige Estates Projects Ltd. rose 4.21% in intraday trade to Rs 502 apiece after the company announced its update for the September quarter. The group has registered highest quarterly sales of Rs 2,111.9 crore, up 88% YoY. Collections rose 35% YoY to Rs 1,551.5 crore. Sales for H1FY22 was Rs 2,845.8 crore and collections at Rs 2,573.8 crore, the company said in an exchange filing.

Of the 20 analysts tracking the company, 19 maintained 'buy' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 15.2%. Trading volume on the stock was 1.6 times the 30-day average volume, for this time of the day.

Shares of Tata Power Co Ltd. rose over 9% to Rs 192.9 apiece. Trading volume was double the 20-day average volume, for this time of the day.

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

• Tata Power trades at 32 times its estimated earnings per share for the coming year.

• Analysts have 19 'buy', two 'hold' and three 'sell' recommendations on the stock.

The rise comes amid the coal shortage concerns. Multiple reports said that Tata Power arm, Tata Power Delhi Distribution Ltd. informed its users to use electricity judiciously due to limited availability in generation plants across Northern region.

India’s divestment plays and lenders to debt-laden airline Air India rise after the government selected Tata Group’s $2.4 billion bid for privatizing the loss-making national carrier.

Shipping Corp., led the gains in some companies in which the government has either started the procedure of stake divestment or proposes sale

Shipping Corp. shares rise as much as 7.4%; most since May 5

Bharat Petroleum +1.2%; Dredging Corp. +1.9%, IDBI Bank 3.2%

Spicejet gains as much as 3%

Most lenders to Air India also advance

Bank of Baroda +2.4%; Punjab National Bank +1.4%; Canara Bank +1.6%; State Bank of India +3.5%; Union Bank +0.8%, IndusInd Bank +1.7%

Source: Bloomberg

Shorter-term India sovereign securities gained in Monday morning trading.

• The 4-year yield fell 1.2bps to 5.33%

• The 10-year yield rose 0.8bps to 6.326%

• The 14-year yield rose 0.9bps to 6.835%

• The 4-year-10-year yield spread was 99.6bps, vs previous close 97.6bps

Break-up of quarterly crude steel production

• -Combined crude steel production at 5.07MT, up 29% YoY

• -Standalone steel production at 4.10 MT, up 6% YoY

• - Indian operations’ production stood at 4.92 MT, up 26% YoY

• -Ohio units’ production stood at 0.15 MT, up 7.5 times YoY

Source: Exchange Filing

Shares of Sunteck Realty Ltd rose 3.65% in intraday trade to Rs 514.9 apiece after the company announced operational update for September quarter. The Mumbai-based luxury realty developer has posted pre-sales growth of 55% QoQ to Rs 272 crore.

Collections rose 20% QoQ to Rs 207 crore while collection efficiency improved to 85% of pre-sales in the first half of the fiscal, as against 68% in the corresponding period last year.

In an exchange filing, Sunteck Realty said that it is confident of maintaining sturdy growth in pre-sales driven by new launches and projects across the pricing spectrum in Mumbai Metropolitan Region.

In the last 18 months, Sunteck has acquired four projects at Vasai, Vasind, Borivali and Shahad. A 50-acre project in Kalyan, in joint development with Amar Dye Chem Ltd, announced in September quarter is expected to generate a top line of Rs 9,000 crore over next 7-8 years, strengthening cash flow and balance sheet of the company.

All the 10 analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 1.3%. The relative strength index on the stock was 71, suggesting it may be overbought

• NSE Nifty 50 Index Hits Record 17,951.55

• NSE Nifty 50 Index Near The 18,000 Mark

Shares of Sterling & Wilson Solar Ltd. climbed over 17% in intraday trade to Rs 509.1 apiece after Reliance Industries Ltd. said that its wholly-owned subsidiary Reliance New Energy Solar Ltd., has executed agreements with Shapoorji Pallonji and Company Pvt Ltd., Khurshed Daruvala and Sterling & Wilson Solar Ltd. to acquire 40% stake in Sterling & Wilson Solar through a series of transactions, the company said in an exchange filing on Sunday.

Reliance Industries has provided details of the transactions.

Subscription to 2,93,33,333 equity shares of face value of Rs 1 each of Sterling & Wilson Solar at Rs 375 per share, aggregating to Rs 1099.99 crore, by way of preferential issue to be made by Sterling & Wilson Solar.

Purchase of 1,84,00,000 shares of Sterling & Wilson Solar from Shapoorji Pallonji & Company at Rs 375 per share, aggregating to Rs 690 crore.

Acquisition of up to 4,91,37,420 shares of Sterling & Wilson Solar at Rs 375 per share, aggregating to Rs 1842.65 crore, from public shareholders of Sterling & Wilson Solar in the open offer to be made by Reliance New Energy, as per SEBI Regulations.

Purchase of additional equity shares from Shapoorji Pallonji & Company and Khurshed Daruvala, the current promoters of Sterling & Wilson Solar at Rs 375 per share.

The acquisition plan requires approval from CCI, SEBI, shareholders of Sterling & Wilson Solar.

The relative strength index on the stock was 79, suggesting that it may be overbought. Trading volume on the stock was 18.5 times the 30-day average volume for this time of the day.

India's stock benchmarks opened lower, dragged by losses in information technology stocks following the Q2 numbers of Tata Consultancy Services Ltd., post market hours on Friday.

The S&P BSE Sensex shed 0.16% to 59,964.64. The NSE Nifty 50 also declined by similar magnitude to 17,872.90.

The broader indices outperformed their larger peers with the S&P BSE MidCap little changed and S&P BSE SmallCap gaining 0.5%. Sixteen of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Auto index gaining 1.70%. On the flipside, S&P Information Technology index shed over 3.6%.

The market breadth was skewed in favour of bulls. About 1,807 stocks advanced, 602 declined and 106 remained unchanged.

Indian bond traders will assess a report that the government plans to borrow more than Rs 30,000 crore ($4 billion) to repay the debt of Air India, a move that may raise annual bond sales. 

• The decision to sell bonds to repay the residual debt of Air India may happen at an opportune time, the Economic Times reported, citing a senior official with knowledge of the matter

• 10-year yields rose 5bps to 6.32% on Friday as higher oil prices and U.S. treasury yields added to concerns about the normalization of Reserve Bank of India’s monetary policy after it halted a key bond buying program on Friday

• USD/INR rose 0.3% to 74.9938 on Friday.

• Global funds sell net Rs 64.01 crore of India Stocks Friday: NSE

• They sold Rs 884 crore of sovereign bonds under limits available to foreign investors, and added Rs 81crore of corporate debt

• State-run banks bought Rs 7,840 crore of sovereign bonds on Oct. 8: CCIL data. Foreign banks sold Rs 3,310 crore of bonds.

• ICICI Bank has 4.73 million shares change hands in a pre-market trade

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

Sunteck Realty Ltd. has announced operational update for September quarter. The Mumbai-based luxury realty developer has posted pre-sales growth of 55% QoQ to Rs 272 crore.

Collections rose 20% QoQ to Rs 207 crore while collection efficiency improved to 85% of pre-sales in the first half of the fiscal, as against 68% in the corresponding period last year.

In an exchange filing, Sunteck Realty said that it is confident of maintaining sturdy growth in pre-sales driven by new launches and projects across the pricing spectrum in Mumbai Metropolitan Region.

In the last 18 months, Sunteck has acquired four projects at Vasai, Vasind, Borivali and Shahad. A 50-acre project in Kalyan, in joint development with Amar Dye Chem Ltd, announced in September quarter is expected to generate a top line of Rs 9,000 crore over next 7-8 years, strengthening cash flow and balance sheet of the company.

Glenmark Pharmaceuticals Ltd. has launched bioequivalent version of Tiotropium Bromide dry powder inhaler (DPI) under the brand name Tavulus in Spain. The inhaler is used for the treatment of chronic obstructive pulmonary disease (COPD).

In an exchange filing, Glenmark Pharma said that Tiotropium DPI had a market size of $ 433 million in the European Union in the 12-month period ended 2021. Studies show that nearly 25 lakh people suffer from COPD in Spain.

Glenmark Pharma is planning to launch the product in UK, Ireland, Sweden, Finland and Norway under the brand name Tiogiva while the product willbe sold as Tavulus in Denmark and Netherlands, and Tiotropium Glenmark in Germany

Reliance Industries Ltd. said that its wholly-owned subsidiary Reliance New Energy Solar Ltd., has executed agreements with Shapoorji Pallonji and Company Pvt Ltd., Khurshed Daruvala and Sterling & Wilson Solar Ltd. to acquire 40% stake in Sterling & Wilson Solar through a series of transactions, the company said in an exchange filing on Sunday.

Reliance Industries has provided details of the transactions.

1. Subscription to 2,93,33,333 equity shares of face value of Rs 1 each of Sterling & Wilson Solar at Rs 375 per share, aggregating to Rs 1099.99 crore, by way of preferential issue to be made by Sterling & Wilson Solar.

2. Purchase of 1,84,00,000 shares of Sterling & Wilson Solar from Shapoorji Pallonji & Company at Rs 375 per share, aggregating to Rs 690 crore.

3. Acquisition of up to 4,91,37,420 shares of Sterling & Wilson Solar at Rs 375 per share, aggregating to Rs 1842.65 crore, from public shareholders of Sterling & Wilson Solar in the open offer to be made by Reliance New Energy, as per SEBI Regulations.

4. Purchase of additional equity shares from Shapoorji Pallonji & Company and Khurshed Daruvala, the current promoters of Sterling & Wilson Solar at Rs 375 per share.

The acquisition plan requires approval from CCI, SEBI, shareholders of Sterling & Wilson Solar.

• Shares of companies related to India’s power sector may move after government said the country has sufficient quantity of coal to meet demand of power plants. 

• Separately, brokerage Jefferies India Pvt, in a note wrote that the current coal shortage should be temporary.

• “Seasonally, Nov-Dec sees Coal India production ramp up and demand trends normalize,” according to the note.

• Brokerage remains positive on NTPC, Power Grid. 

• In Focus: Coal India Ltd., Adani Power, Tata Power, NTPC, Power Grid, JSW Energy, Torrent Power, Reliance Power

• Power plants have 7.2 million tonnes of coal reserves that can last four days and Coal India Ltd., a supplier to such stations, has a stock of 40 million tons, the coal ministry said on Sunday

• Coal dispatches were constrained due to a prolonged monsoon rainfall, it said