Sensex, Nifty Advance For Second Session Aided By RIL, HDFC Bank, Bajaj Twins

India’s stock benchmarks closed higher for the second consecutive session, aided by gains in index heavyweights RIL and HDFC Bank as well as Bajaj twins as Bajaj Finserv received an in-principle approval from SEBI to set up mutual fund.

The S&P BSE Sensex rose 0.73% and closed at a record 55,958.98. The 30-stock index rose to 56,023.22 in intra-day trade. The NSE Nifty 50 advanced by a similar magnitude to 16,624.60, a record close for the 50-stock index. HDFC Bank Ltd. contributed the most to the index gain, increasing 2.3%. Bajaj Finserv Ltd. had the largest increase, rising 7.8%.

The broader indices outperformed their larger peers with the S&P BSE MidCap and the S&P BSE SmallCap adding over 1.5%. Sixteen out of 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal and S&P BSE Materials gaining over 2%

The market breadth was skewed in favour of bulls. About 2,149 stocks advanced,1,027 declined and 122 remained unchanged.

Banking stocks rose with 10 out of 12 constituents of NSE Nifty Bank advancing in this session.

• AU Small Finance Bank Ltd. shares added over 5.5% while IDFC First Bank Ltd. stock gained over 4.5%.

• Shares of index heavyweight HDFC Bank Ltd. rose over 2%

Shares of Kabra Extrusiontechnik Ltd., manufacturer of plastic extrusion machinery, climbed 18.46%, the most in nearly six months, to Rs 253.75 apiece after the company announced that its battery division, Battrixx, received single largest order to supply 8000 battery packs.

Battrixx will supply the battery packs for electric two-wheelers (Joy-E-Bike) produced by WardWizard Innovations, an auto manufacturing company in EV segment.

Shares of Linde India Ltd. rose 6.62% to hit a record high, Rs 2,168.50 apiece.

• Trading volume was 4,16,997 shares, quadruple the 20-day average of 1,11,275 shares for this time of day.

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

• Linde India trades at 51 times its estimated earnings per share for the coming year.

Shares of ABB India Ltd. rose 3% to Rs 1,725 apiece after the company informed the exchanges that it expanded manufacturing capacity for Low Voltage (LV) motors at its Faridabad facility which is powered by renewable energy.

According to an exchange filing by ABB India, the expansion will increase plant capacity by over 20% and would strength the company’s presence in the region as well as global markets.

Of the 31 analysts tracking the company, 14 maintained ‘buy’, 8 maintained ‘hold’ and 9 maintained ‘sell’ recommendations. Eleven analysts have revised target prices higher over the past month. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1.2%.

Shares of Lupin Ltd. advanced nearly 2% to Rs 943.20 apiece after the company launched Luforbec drug 100/6 dose pressurized metered dose inhaler in UK markets. The drug is used for the treatment of adult asthma. Lupin is approved to manufacture the drug in Pithampur in India and Coral Springs in the U.S.

Luforbec drug is the first branded generic alternative to Fostair. The NHS spent over 177 million euros on Fostair in the twelve months to May 2021.

• Infosys announced the signing of a new minimum 3-year core technology contract with UCAS, the admissions service for UK higher education.

• The partnership is crucial to support and deliver a stable platform for students planning higher education.

• UCAS supports 7 lakh applicants every year.

Shares of Optiemus Infracom Ltd advanced 5% to Rs 147.35 apiece after the company announced strengthening of ties through strategic partnership between its wholly owned subsidiary, Optimus Electronics Ltd. and Taiwan’s Wistron to manufacture mobile devices, IT hardware and automotive-EV products.

In an exchange filing, the company said that the alliance will work towards creating a joint hub in India for design solutions product development and smart meters manufacturing.

• Optiemus Electronics and Wistron will work toward design and manufacturing of tablets, laptops, hearables, wearables, telecom products, IoT/Industrial IoT, smart meters. Optiemus has a capacity to make 2 million devices a month, according to the filing.

• Optiemus Electronics has PLI (Production-Linked Incentive) for both mobile phone manufacturing and IT hardware manufacturing.

• The company plans to invest Rs 1,350 crore targets to achieve a revenue of Rs 38,000 crore in multiple product segment in the next 3-5 years.

India’s stock benchmarks advanced, aided by gains in Bajaj twins following an In-Principle nod by SEBI for Bajaj Finserv to sponsor mutual fund. Banking, metal and technology stocks also aided the rally.

The S&P BSE Sensex rose 0.41% to 55,784.87 The NSE Nifty 50 advanced by similar magnitude to 16,560.00. HDFC Bank Ltd. contributed the most to the index gain, increasing 1.4%. Bajaj Finserv Ltd. had the largest increase, rising 8.3%.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining over 0.7%. Fifteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal and S&P BSE Oil & Gas adding over 1.5%.

The market breadth was skewed in favour of bulls. About 1,762 stocks advanced, 1,280 declined and 119 remained unchanged.

Tata Power Renewable Energy Ltd, 100% subsidiary of Tata Power Co Ltd., announced commissioning of 150 MW solar power project in village Loharki in Rajasthan.

• According to an exchange filing by the company, the project has been completed within the stipulated timelines and plant would generate more than 350 million units annuals.

• The project is expected to result in a reduction of 3.34 lakh tons of carbon emission every year.

Of the 23 analysts tracking Tata Power, 18 maintained ‘’buy’, 3 maintained ‘hold’ and 2 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.1%. Shares of Tata Power advanced 66% in 2021 so far.

Metal stocks advanced with S&P BSE Metal index being the top sectoral gainer, adding over 1.5%. Shares of NMDC Ltd., Hindalco Industries Ltd. rose 3% while Tata Steel Ltd. gained over 2%

India’s oil refineries increased crude processing in July after demand started recovering with the fall in Covid-19 infections and easing restrictions on people movement, according to oil ministry data.

• Indian refiners had cut run-rates to 89.6% in June, and 83.3% in July 2020.

• The nation’s refineries processed 19.38m tons of crude during July, a 5.3% gain from June and 9.6% higher than a year earlier.

• State-run Indian Oil, the nation’s biggest refiner, operated its nine refineries at an average rate of 95.74%, while its unit Chennai Petroleum had a lower run-rate of 83.78%

• Hindustan Petroleum, which had work going on at both its refineries in Mumbai and Visakhapatnam, operated at an average rate of 59.59%

• Bharat Petroleum’s Kochi plant operated at 82.56%, while Mumbai plant achieved 122.92% of declared capacity

• Private refiners Reliance Industries and Nayara Energy reduced crude processing during July from the previous month

Shares of Meghmani Organics Ltd. advanced 5% to Rs 103.25 apiece. This is the fourth consecutive session in which the stock hit 5% upper ceiling.

On Wednesday, Meghmani Organics and Meghmani Finechem Ltd. got listed on the exchanges after the demerger of agrochemical and pigment business.

Shares of Meghmani Finechem hit 5% upper circuit for the fourth consecutive session, as well.

Shares of Asian Granito India Ltd. climbed 6.29%, the most in 2 months, to Rs 162.30 apiece after the company’s board approved the issue of equity shares through rights issue under Fast Track Mode.

Trading volumes was quadruple the 30-day average for this time of the day. Shares of Asian Granito declined 45% in 2021 so far compared to 17.5% gains for Sensex.

RBI has imposed a monetary penalty of Rs 27.5 lakh on Dhanlaxmi Bank Ltd for non-compliance with certain provisions issued by RBI on crediting the eligible amounts to the Depositor Education and Awareness Fund.

According to an exchange filing by Dhanlaxmi Bank, RBI’s action pertained to deficiencies in regulatory compliance and not related to any transaction entered into by the bank with the customers.

Shares of Bajaj Finserv Ltd. advanced 3.75% to a 52-week high of Rs 15,845 apiece after the company informed exchanges that it received an In-Principle approval from Securities and Exchange Board of India for sponsoring a mutual fund.

Bajaj Finserv would be setting up an Asset Management Company and the Trustee company, directly or indirectly (through its subsidiary), in according with the SEBI regulations, exchange filing by the company showed.

The relative strength index on the stock was 81, suggesting that it may be overbought. Of the 11 analysts tracking the company, 7 maintained 'buy' and 4 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.5%.

Shares of Nucleus Software Exports Ltd. gained over 9%, the most in 7 weeks, to Rs 573 apiece after the company announced that it will empower Kerala-based private sector lender South Indian Bank Ltd, by providing digital solution to revamp the bank’s retail lending landscape.

Digital first approach to retail lending will be a key area of focus, exchange filing by Nucleus Software showed. The company will offer FinnOne Neo, a lending solution custom-built for lending across retail and corporate sectors, to South Indian Bank.

Shares of Affle India Ltd. rose over 4% to Rs 3,998.90 apiece after the decline of similar magnitude in the previous trading session.

The company informed exchanges during market hours Monday that the board of directors of the company will consider and approve the split of equity shares in their meeting on Thursday.

The relative strength index on the stock was 28, suggesting that it may be oversold. Of the 6 analysts tracking the company, 4 maintained 'buy' and 2 maintained 'hold' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 49.8%

Shares of Ujjivan Small Finance Bank Ltd. advanced 8.40% to Rs 20 apiece.

• The stock tumbled in the past two sessions after the resignation of Nitin Chugh as chief executive at the company.

• The relative strength index on the stock is 20, suggesting that it may be oversold.

• Of the 18 analysts tracking the company, 10 maintained ‘buy’, 5 maintained ‘hold’ and 3 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 48.5%.

Shares of GAIL India Ltd. added over 5%, the most in 15 weeks, to Rs 148 apiece.

• Trading volume was 3.11 million shares, double the 20-day average of 1.34 million shares for this time of the day.

• GAIL India traded at 8.4 times its estimated earnings per share for the coming year.

• Analysts have 35 'buy', 2 'hold' and no 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 28.4%.

India’s stock benchmarks advanced amid positive global trade following the full approval granted by U.S. Food and Drug Administration for the Pfizer-BioNTech covid vaccine.

The S&P BSE Sensex rose 0.26% to 55,697.97. The NSE Nifty 50 advanced by similar magnitude to 16,549.95. Reliance Industries Ltd. contributed the most to the index gain, increasing 0.6 percent. Hindalco Industries Ltd. had the largest increase, rising 3.0 percent.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining over 0.7%. Fifteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal and S&P BSE Oil & Gas adding over 1.5%.

The market breadth was skewed in favour of bulls. About 1,187 stocks advanced, 1,042 declined and 87 remained unchanged.

Indian bonds may open lower as a surge in crude prices threaten to weigh on the nation’s inflation and finances. Bond investors will also await a Rs 11,200 crore ($1.5b) sale of state debt. 10-year yields rose 1bp to 6.24% on Monday; 5-year yield steady at 5.69%

India plans to raise Rs 6 Lakh Crore ($81 billion) by leasing out state-owned infrastructure assets over the next four years to fund new capital expenditure without pressuring government finances, Finance Minister Nirmala Sitharaman said on Monday.

The National Monetisation Pipeline (NMP) marks an encouraging and long-awaited initiative by the central government to monetise brownfield assets to fund medium-term infrastructure needs, Radhika Rao, India economist at DBS Bank, wrote in a note.

• Whilst such initiatives have been undertaken in the past, expectations are that a clear visibility over the asset pipeline, pre-set annual targets and regular assessments will contribute to making the program more effective than earlier initiatives.

• While the FY22 fiscal math has already set the divestment target at a high of INR1.75t, next year’s budget might also resort to a higher projection to factor in the targeted.

• If effective, the NMP will help achieve two birds with one stone - fund crucial infrastructure projects yet keep fiscal consolidation plans on track - the glide path aims to narrow the deficit to below -4.5% of GDP by FY26.

USD/INR fell 0.2% to 74.2125 on Monday. Global Funds sold net Rs 1,360 crore of India stocks Monday.

Asian stocks rose on Tuesday after a boost to the U.S. vaccination drive allayed some concerns over the delta strain’s economic impact, lifting Wall Street. The dollar held a drop and oil steadied after surging.

MSCI Inc.’s Asia-Pacific share gauge climbed for a second day, aided by jumps in Japan as well as Chinese technology stocks, with South Korea also advancing. Equities in China overall posted a modest gain after the central bank in a statement called for more credit support for the real economy.

U.S. futures nudged higher after American equities extended a rebound on full approval for the Pfizer Inc.-BioNTech SE shot, which raises the prospect of more vaccine mandates to underpin economic reopening.

India’s SGX Nifty 50 Index futures for August delivery rose 0.6% to 16,586.50, while MSCI Asia Pacific Index gained 1.2%. The NSE Nifty 50 Index gained 0.3% on Monday to 16,496.45.

Commodities held a surge — including oil’s biggest jump in nine months overnight in New York — in a return of the reflation trade linked to the recovery from the pandemic. Treasuries were steady ahead of the Jackson Hole symposium.

Elsewhere, gold was around the highest in more than two weeks and Bitcoin traded near $49,000.

Back home, Aptus Value and Chemplast Sanmar will debut after IPO. Maruti, Wabco are holding their annual shareholders’ meeting. Foreign investors bought net Rs 517 crore of stocks on Aug. 20, according to NSDL website.