Sensex Closes Above 56,000-Mark For The First Time
India’s stock benchmarks closed at record and posted weekly gains aided by metal, pharma and capital goods stocks. Focus shifts to Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium later today, as investors gauge U.S. economic growth outlook and monetary policy normalization timeline.
The S&P BSE Sensex advanced 0.31% to 56,124.72, the first ever close above the 56,000-mark. The 30-stock index climbed to within 10 points of the record high in intraday trade. The NSE Nifty 50 added 0.41% to 16,705.20,again the first ever close above 16,700. The 50-stock index hit a record 16,722.05 in intra-day trade. Larsen & Toubro Ltd. contributed the most to the index gain, increasing 2.7%. UltraTech Cement Ltd. had the largest increase, rising 3.5%.
The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining 1%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Capital Goods gaining over 2% and S&P BSE Metal, S&P BSE Industrials, S&P BSE Basic Materials adding 1.5%.
The market breadth was skewed in favour of bulls. About 1,919 stocks advanced, 1,279 declined and 140 remained unchanged.
RBI Accepts Rs 34,000 Crore Of Bonds Vs Rs 31,000 Crore Plan
India’s central bank sold 5.63% 2026 bonds at a cutoff yield of 5.6981%; sold Rs 12,960 crore of bonds vs Rs 11,000 crore plan.
Sold new 2034 floater at 4.45%; sold Rs 3,000 crore as planned.
Sold 6.64% 2035 bond at 6.8273% cutoff yield; sold Rs 10,580 crore vs Rs 10,000 crore plan.
Sold 6.67% 2050 bond at 7.1526% cutoff yield; sold Rs 7,470 crore vs Rs 7000 crore plan.
Shriram Transport Gains As Company Mulls Fund Raise
Shares of Shriram Transport Finance Co. Ltd. added 2% to Rs 1,291 apiece after the company said it will consider raising of funds by way of issue of redeemable non-convertible debt securities in onshore market on private placement basis and/or public issue subject to market condition.
According to an exchange filing by Shriram Transport, the meeting of concerned committees will be held to approve the issue and allottment of the securities during the month ending September 30.
Of the 37 analysts tracking the company, 29 maintained 'buy', 5 maintained 'hold' and 3 maintained 'sell' recommendations. Ten analysts have revised target prices higher over the last month while 9 revised it lower. The overall consensus price of analysts tracked by Bloomberg implied an upside of 24.7%.
Sudarshan Chemical Advances As Govt Imposes Anti-Dumping Duty On Pearl Industrial Pigments
Shares of Sudarshan Chemical Industries Ltd. added 19% to Rs 704.40 apiece on the NSE after the government imposed an anti-dumping duty on natural mica-based pearl industrial pigments.
According to a CBIC (Central Board of Indirect Taxes and Customs) release, the product under consideration has been exported at price below normal value, resulting in dumping and adversely affecting domestic industry. CBIC also observed that there is a causal link between dumping of product under consideration and injury to domestic industry and recommended imposition of anti-dumping duty on imports.
The anti-dumping duty imposed shall be levied for a period of five years, according to the release. The decision is seen as a positive for Sudarshan Chemicals, as it is the sole producer of pigment in India.
All the 9 analysts tracking the company maintained 'buy' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.5%.
The share price crossed the 50-day simple moving average, indicating potential upward price momentum
Fortis Healthcare Climbs As Jefferies Expect Low Risk From SC Order
Shares of Fortis Healthcare Ltd. added nearly 6% to a 52-week high of Rs 293.80 apiece as brokerage firm Jefferies maintained 'hold' on the company's stock citing that the risk of negative surprise from court judgement in the case over the sale of controlling stake in the company to IHH Healthcare, was rather low.
Jefferies noted that there is low risk to IHH and RHT transactions from the upcoming judgement as due process was followed including a bidding process.
Jefferies expect a favourable judgement would lift the stay on IHH open offer and maintained 'hold' with the target price unchanged at Rs 249, an implied downside potential of 10.29%.
Of the 10 analysts tracking the company, 8 maintained 'buy' and 2 maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1.2%.