Sensex Closes Above 56,000-Mark For The First Time
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 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%.
UltraTech Cement Up Most In Six Months
Shares of UltraTech Cement Ltd. advanced 3.94%, the most in six months, to Rs 7,594.80 apiece. The stock was the best performer among its peers.
Trading volume was 3,75,629 shares, 80% above the 20-day average of 2,08,724 shares for this time of the day.
UltraTech Cement trades at 32 times its estimated earnings per share for the coming year.
Analysts have 35 'buy', six 'hold' and two 'sell' recommendations on the stock.
The overall consensus price of analysts tracked by Bloomberg implied an upside of 7%.
HAL Gains 8%; Trading Volume Surges
Shares of Hindustan Aeronautics Ltd gained 8.48% to Rs 1,399 apiece, extending gains for the fourth consecutive session.
Trading volume was 2.11 million shares, quadruple the 20-day average of 5,25,693 shares for this time of the day.
The relative strength index on the stock was above 70, indicating it may be overbought.
Analysts have 5 'buy', no 'hold' and no 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of over 18%
CAMS Rises The Most In Six Weeks
Shares of Computer Age Management Services Ltd. advanced 9.15%, the steepest rise in nearly 6 weeks. to Rs 3,539 apiece. CAMS informed exchanges post market hours Thursday that International Financial Services Centres Authority (IFSC), Gandhinagar authorized the company to undertake "administration, asset management support services and trusteeship services".
According to an exchange filing by CAMS, GIFT City Multi Services - SEZ had already given the approval to the company, extending the facilities, entitlements admissible to units in GIFT City.
CAMS stated that it is already in the process of setting up an office at GIFT city to provide Asset Management Support Services for financial institutions which have set up/setting up operations in GIFT City.
Of the 7 analysts tracking the company, 5 maintained 'buy' and 2 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19%.
Nifty Hits A Record High In Intraday Trade
NSE Nifty 50 index hit a record high 16,712.60 in intraday trade.
Ultratech Cement Ltd., Larsen & Toubro Ltd. & Hindalco Industries contributed the most to index gains, adding over 3%.
Top India Refiner Says Enough Legroom for All Types of Energy
Indian Oil Corp., the nation’s biggest refiner, is aggressively rolling out new projects to cater to the surge in demand and also to emerge as a future-ready energy giant, Chairman Shrikant Madhav Vaidya says at the company’s annual shareholders’ meeting.
The company and its unit Chennai Petroleum will invest Rs 1 lakh crore to expand refining capacity by over 25m tons/year in next 4-5 years.
Various forecasts show India’s fuel demand climbing to 400 million tonnes-450 million tonnes by 2040, from 250 million tonnes now.
Demand recovery in petroleum products helping a turnaround in refinery operations; IOC refineries operated at 88.6% capacity in June quarter as against 68.5% a year earlier.
Gasoline sales have already crossed pre-Covid level and diesel is likely to reach there in 2-3 months.
IOC Sees Pre-Covid diesel demand returning in a quarter.
IOC is focusing on integrating refining processes to yield more chemical products per barrel of oil and working on alternative energy options.
Looking for new opportunities in the renewable energy; company has more than 65 MW solar power capacity and 167 MW wind power.
GoAir Gets Initial Share Sale Nod From India’s Market Regulator: Bloomberg
Go Airlines India Ltd. has got the green light from the nation’s market regulator to raise Rs 3,600 crore ($485 million) through an initial public offering.
GoAir’s share sale was put on hold in June by the Securities and Exchange Board of India. The airline now expects to file a preliminary prospectus in about three weeks.
Source: Person familiar with the matter.
A GoAir spokesman and representative from Sebi didn’t immediately respond to requests for comment.
A share sale would come at an opportune time for debt-laden GoAir, which is losing money and plans to rely on proceeds from the IPO to repay debt and dues to creditors including Indian Oil Corp.
The carrier, in the process of rebranding itself as GoFirst, has obligations that totaled around Rs 8,160 crore as of mid-April, according to its draft preliminary prospectus.
ICICI Lombard Gains Most in Two Months as Debentures Redeemed
Shares of ICICI Lombard General Insurance Co. climbed over 6% to Rs 1,56- apiece as the firm fully redeemed Rs 425 crore of non-convertible debentures.
Rating companies Crisil Ltd. and ICRA Ltd. withdrew ratings on the debt instrument as it was fully redeemed, according to company’s exchange filings
Stock’s trading volume 3x the 3-month, full day average.
Analysts have 15 'buy', 5 'hold' and 5 'sell' ratings.
Mid-Day Market Update: Sensex, Nifty At Day's Highs, L&T Leads Advance
India’s stock benchmarks advanced after a muted start aided by metals, pharma stocks, as they are look poised for weekly gains. 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 rose 0.2% to 56,057.12. The NSE Nifty 50 also advanced by similar magnitude to Rs 16,683.45. Larsen & Toubro Ltd. contributed the most to the index gain and had the largest move, increasing 4.1%.
The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining 0.7%. Barring S&P BSE Energy, all the other 18 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Telecom and S&P BSE Capital goods adding over 2%.
The market breadth was skewed in favour of bulls. About 1,824 stocks advanced, 1,232 declined and 153 remained unchanged.
Large Cap Outperformance to Drive Nifty Toward 17,200: ICICI Securities
India’s large cap stocks are likely to outperform, gradually driving the key NSE Nifty 50 Index toward 17,000-17,200 in coming months, analysts led by Dharmesh Shah wrote in note.
Recommends sticking to “buying on decline” strategy.
“Temporary breather after ~8% rally over past four weeks would present incremental buying opportunity to build quality portfolio from medium term perspective,” according to the note.
Brokerage doesn’t expect index to breach key support of 15,900.
Declines in Nifty mid-, small-cap indexes indicate pause in upward momentum; consolidation to offer incremental buying opportunity.
Carborundum Universal Extends Gains, Hits 52-Week High
Shares of Carborundum Universal Ltd. rose over 5% to 52-week high of Rs 800 apiece after it decided to make a strategic investment in PLUSS Advanced Technologies Pvt Ltd. Carborundum Universal plans to acquire 72% stake in PLUSS for an aggregate amount of Rs 115 crore approximately.
PLUSS is a specialty materials research and manufacturing company involved in the fields of phase change materials for thermal energy storage and specialty polymeric additives to enhance material properties.
According to an exchange filing during market hours Thursday, Carborundum Universal expected the transaction to be completed by October 31.
Shares of Carborundum Universal rose 3% in previous session and continued to advance in today's session. Of the 10 analysts tracking the company, 9 maintained 'buy' and 1 maintained 'hold' recommendation. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1.3%. The relative strength index on the stock was 76, suggesting that it may be overbought.
Zen Technologies Climbs 12% To 52-Week High After New Drone Rules
Shares of Zen Technologies Ltd. advanced 12% to a 52-week high of Rs 107.75 apiece. The stock added 13.11% in the previous trading session.
Zen Technologies is a listed company with a core business of anti-drone systems, drones, and training solutions. Indian government relaxed rules on the use of drones, making it easier to acquire licenses. Payloads of up to 500 kilograms are now allowed, while operations need only five authorisations to fly drones, instead of 25 earlier, according to a statement from the Ministry of Civil Aviation on Thursday. The new drone rules are expected to be a positive for Zen Technologies.
L&T Advances Over 4%; Motilal Oswal Financial Services Raises Target Price
Shares of Larsen & Toubro Ltd. added 4.33% to Rs 1,664.90 apiece. The stock was the top gainer in NSE Nifty 50 index. This rise comes after Motilal Oswal Financial Services raised the target price of the stock to Rs 1,950 from Rs 1,595.75 earlier, implying a potential upside of 22.20%.
The brokerage firm pointed out that L&T is well placed to benefit from macro improvement as its core E&C business is poised to take advantage from any capex upcycle. The order inflows hit by the pandemic would improve as the economy opened up, according to a note by Motilal Oswal Financial Services.
Spotting multi catalysts emerging for L&T such as asset monetization for Hyderabad Metro and Nabha Power, FCF generation in core business, improvement in order inflows and improved execution, the brokerage firm insisted that there were no fundamental reasons for the relative underperformance of L&T's shares.
Of the 43 analysts tracking the company, 41 maintained 'buy', 1 maintained 'hold' and 1 maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.5%.
India May Sell 5.63% 2026 Bond at 5.71% Cutoff Yield: Survey
India is likely to sell Rs 11,000 crore of 5.63% 2026 bond at a cutoff yield of around 5.71%, according to the median estimate in a Bloomberg survey of five banks and securities firms.
Cutoff yield for Rs 10,000 crore of 6.64% 2035 bond seen around 6.84%.
Cutoff yield for Rs 7,000 crore of 6.67% 2050 bond seen around 7.19%.
Cutoff price for Rs 3,000 crore of 2034 floating rate bond seen around Rs 103.
Apollo Micro Systems Advances On Rs 59.62 Crore Order Win
Shares of Apollo Micro Systems Ltd. advanced over 4% after the company bagged supply order worth Rs 59.62 crore.
In an exchange filing, the company said that the order related to the supply of security and surveillance systems.
The company's strategic activity over the past 3 months included 9 M&A deals, 7 investments and 1 other deal, according to Bloomberg data.
Shares of Apollo Micro Systems shed 10.9% in 2021 so far compared to 18.2% for Sensex.
SAIL Gains 3%, 1.76 Million Shares Changed Hands In Bunched Trade
Shares of Steel Authority of India Ltd. rose 3.47% to Rs 119.25 apiece.
About 1.76 million shares changed hands in a bunched trade.
Details of buyers and sellers are not known.
Speaking at a corporate event Thursday, SAIL's Chairman Soma Mondal said that the company is looking to bring down its borrowings to Rs 20,000 crore by the end of the current financial year.
Of the 26 analysts tracking the company, 20 maintained 'buy', 3 maintained 'hold' and 3 maintained 'sell' recommendations. The overall consensus price target of analysts tracked by Bloomberg implied an upside of 48%
BHEL Gains After Signing MoU With JSC Rosoboronexport
Shares of Bharat Heavy Electricals Ltd. added nearly 3% to Rs 53.45 apiece after the company announced that it signed a Memorandum of Understanding with JSC Rosoboronexport, post market hours Thursday.
The two companies intend to implement joint projects and activities to produce spare part and components for Russian-origin equipment installed onboard the Indian Navy Aircraft carrier, Vikramaditya, and maintainenance of systems and equipment of Vikramaditya, and on other issues of mutual interest, according to an exchange filing by Bharat Heavy Electricals.
Of the 27 analysts tracking the company, 1 maintained 'buy', 4 maintained 'hold' and 22 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 28.5%
Nalco Advances After Rating Upgrade
Shares of National Aluminium Co Ltd. advanced 7.36% to Rs 84.60 apiece after Kotak Institutional Equities upgraded the company to 'buy' from 'sell' citing strong global aluminum prices, China's disrupted supply and scope for potential expansion.
Kotak said Nalco is the only pure equity play on aluminum-alumina commodity in India with high sensitivity to commodity prices given its higher cost structure.
Of the 10 analysts tracking the company, 7 maintained 'buy', 1 maintained 'hold' and 2 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 6%
Torrent Power Up Most in 11 Weeks, Trading Volume Surges
Torrent Power Ltd. rose 4.4% to Rs 493.85 apiece.
Trading volume was 1.13 million shares, quadruple the 20-day average of 262,991 shares for this time of day.
Analysts have seven 'buy', four 'hold' and two 'sell' recommendations on the stock.
SpiceJet Climbs As India Lifts Ban On Boeing's 737 Max Jet
Shares of SpiceJet Ltd. advanced 4% to Rs 73.90 apiece after India's aviation regulator lifted its ban on Boeing Co.'s 737 Max Jet. SpiceJet has 13 Boeing Max aircraft in its fleet.
Of the nine analysts tracking the company, 1 maintained 'buy', 4 maintained 'hold' and 4 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 0.8%
Adani Green Declines After Announcing Plans To Raise Funds Via Bond Sale Overseas
Shares of Adani Green Energy Ltd. declined over 4.5% to Rs 998 apiece after the company announced plans to raise up to $750 million via bond sale overseas. The company approved issuing U.S. dollar denominated foreign currency bonds which may be issued in one or more tranches overseas.
The bonds may be listed in any one or more stock exchanges in India or overseas. The company will use proceeds from the bond sale for onward lending to subsidiaries, including step-down subsidiaries, for capital expenditure requirements to fund the development of utility scale projects, according to an exchange filing by the company.
Aurobindo Pharma Rises On USFDA Nod For Cancer Injection
Shares of Aurobindo Pharma Ltd. rose over 1.5% to Rs 710 apiece after the company announced that its subsidiary Eugia Pharma Specialities Ltd. received an approval from USFDA for its Cyclophosphamide Injection. The product will be available in ready-to-use injection prepared.
In an exchange filing, Aurobindo Pharma said that the product would be launched in the U.S. market in the near term and will be manufactured in India.
The injection is used for malignant lymphomas, leukemias, mycosis fungoides, neuroblastoma, adenocarcinoma etc.
The approved product has an addressable market size of $170 million for the twelve month ending June 2021, according to IQVIA.
Of the 31 analysts tracking the company, 25 maintained 'buy', 3 maintained 'hold' and 3 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 36.6%
Opening Bell: Sensex, Nifty Open Lower As Markets Await Fed Taper Timeline
India's stock benchmarks opened lower as investors turned cautious amid hawkish comments from some Federal Reserve officials ahead of the Jackson Hole symposium and geopolitical tension stemming from Afghanistan. Focus shifts to Federal Reserve Chairman Jerome Powell's speech at the symposium later today, as investors gauge U.S. economic growth outlook and monetary policy normalisation timeline.
The S&P BSE Sensex fell 0.17% to 55,854.56. The NSE Nifty 50 declined by similar magnitude to 16,619.15. ICICI Bank Ltd. contributed the most to the index decline, decreasing 1.1%. Mahindra & Mahindra Ltd. had the largest drop, falling 1.2%.
The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.4%. Thirteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal adding over 1%.
The market breadth was skewed in favour of bulls. About 1,389 stocks advanced, 829 declined and 85 remained unchanged.
Ami Organics Sets Price Range For Up To Rs 570 Crore India IPO
Ami Organics Ltd. has set a price range of Rs 603-610 a share for its initial public offering that could raise as much as Rs 570 crore ($77 million), according to a newspaper advertisement Friday.
The Surat, Gujarat-based specialty chemicals maker plans to raise as much as Rs 200 crore selling new shares in the IPO, while its founders and shareholders are selling 6.06 million shares in an offer-for-sale as part of the IPO
Investors can bid for minimum 24 shares of face value 10 rupees each in the sale
Ami Organics India IPO to Be open for subscriptions September 1-3
Intensive Fiscal Services Pvt., Ambit Pvt. and Axis Capital are managing the sale.
Bond Traders Await Rs 31,000 crore Debt Sale
India’s bond traders are awaiting a Rs 31,000 crore sale of sovereign debt to gauge demand. RBI won’t announce a policy shift without first preparing the market for it, Governor Shaktikanta Das was cited as saying in a media interview.
Central bank is in no hurry to reverse course on record low interest rates despite concern about mounting inflation, Das said in the pre-recorded TV interview aired Thursday.
USD/INR closed little changed Thursday at 74.2225.
Indian 10-year yields rose 1bp Thursday to 6.25%.
RBI will hold a Rs 3 lakh crore 13-day variable reverse repo auction.
Global Funds sold a net Rs 1,970 crore of Indian stocks Thursday: NSE
They bought Rs 85 crore of sovereign bonds under limits available to foreign investors, and offloaded Rs 230 crore of corporate debt.
State-run banks bought Rs 2,330 crore of sovereign bonds on Aug. 26: CCIL data. Foreign banks sold Rs 2,800 crore of bonds.
BOND SALES/PURCHASES:
India to Sell Rs 10,000 crore of 6.64% 2035 Bonds
India to Sell Rs 11,000 crore of 5.63% 2026 Bonds
India to Sell Rs 7,000 crore of 6.67% 2050 Bonds
India to Sell Rs 3,000 crore of FRB 2034 Bonds
SGX Nifty Hints At Gains; Adani Green, Infosys, SpiceJet In Focus
Most Asian stocks dipped on Friday amid hawkish comments from some Federal Reserve officials ahead of the Jackson Hole symposium and as traders assessed geopolitical tension stemming from Afghanistan.
Shares retreated in Japan and Hong Kong and were steady in China. Chinese technology stocks wavered following a week of big swings as Beijing pursues its regulatory crackdown on private industries.
U.S. futures fluctuated after the S&P 500 fell from a record, in part as some Fed officials said the time to start tapering stimulus is near. Meanwhile, President Joe Biden vowed retaliation for deadly blasts outside Kabul airport that stoked tension as the U.S. evacuates the area. The dollar held a climb.
India’s SGX Nifty 50 Index futures for September delivery rose 0.1% to 16,683.50, while MSCI Asia Pacific Index advanced 0.2%. The NSE Nifty 50 Index closed little changed on Thursday at 16,636.90.
Treasury yields edged lower. Traders are awaiting Chair Jerome Powell’s speech at the symposium for clues on how the Fed might pare bond purchases. A flood of Treasury options set to expire Friday raise the prospect for volatility. Separately, Biden’s advisers are said to be considering recommending Powell for a second term.
The recovery from the pandemic and elevated inflation are supporting calls for monetary policy normalization. But the recent spread of the delta virus strain has complicated economic reopening. Markets are waiting to see how Powell balances these competing factors in his comments, in part as investors grapple with whether to embrace reflation themes or more defensive assets.
Elsewhere, oil advanced as it headed toward its strongest week since February. Gold held below $1,800 an ounce. Bitcoin was trading around $47,500.
Back home, P&G Health may react as the companies reported quarterly results after the market closed on Thursday. Indian Oil, Grasim, HCL Tech, Berger Paints are among the companies holding their annual shareholders’ meeting. Foreign investors sold net Rs 887 crore of stocks on Wednesday, according to NSDL website.