Sensex, Nifty Close At Record For Third Straight Session Aided By RIL, I.T. Stocks

India's stock benchmarks closed at record for the third consecutive session, aided by gains in I.T., realty & consumer durables stocks.

The S&P BSE Sensex gained 0.29% to a 58,296.91, highest ever close. The 30-stock index rose to a record 58,515.85 in intraday trade. This is the first time Sensex has crossed 58,500 mark. The NSE Nifty 50 advanced by similar magnitude to 17,377.80. The 50-stock index hit a record 17,429.55 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.6%. Wipro Ltd. had the largest increase, rising 4.8%. Today, 26 of 50 shares rose, while 23 fell.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.2% and 0.6% respectively. Thirteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Realty adding 3% and S&P BSE Information Technology rising 1.5%.

The market breadth was skewed in favour of bulls. About 1,702 stocks advanced, 1,622 declined and 171 remained unchanged.

Shares of Welspun India Ltd. advanced 9.64% to Rs 138.25 apiece after the company received the US FDA 510(k) clearance for its 3 Ply Surgical Masks.

• The masks have been certified by BIS and CE already.

• Mask has all required certifications to supply to global markets including critical and medical uses.

• Surgical masks made with 100% polypropylene and offer 98% protection against bacterial load.

Source: Exchange Filing

Real Estate developer TARC Ltd. announced the successful completion of the sale of its warehousing asset in North Delhi to BREP Asia II EIP Holding Ltd, an affiliate of funds managed and/or advised by Blackstone Inc. for a total consideration of Rs 295 crore, the company informed exchanges.

The move is aligned to TARC’s strategy of focusing on core development projects to unlock value through its land parcels in the capital. TARC intends to use a part of the proceeds to fast track residential projects.

Shares of TARC climbed 5% to Rs 41 apiece. Trading volume was 2.3 times the 30-day average for this time of the day. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.

Shares of Ashoka Buildcon Ltd. rose 6.9% to Rs 107.30 apiece after the company received Letter of Award (LoA) from Adani Road Transport Ltd. The LoA pertains to the execution of civil and associated works on EPC basis of six laning of national corridor NH-19 from Pangarh to Palsit in West Bengal.

The accepted EPC contract price is Rs 1,567.45 crore, the company said in an exchange filing Saturday.

Of the 20 analysts tracking the company, 19 maintained ‘buy’ and 1 maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 49.3%.

TVS Motor Co. is higher for the seventh straight day, on track for the longest winning streak since the period ended June 21, 2016.

TVS Motor has gained a total of 7.2% during the streak. Today, the stock rose 1.75% to Rs 549.85 apiece.

During this streak, the company reported vehicle sales for August on September 1. August vehicle sales rose 1.1% YoY while exports grew 61% YoY.

Of the 41 analysts tracking the company, 24 maintained 'buy', 6 maintained 'hold' and 11 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.5%

Shares of Sobha Ltd. rose for the eighth straight day, on track for the longest winning streak since the period ended Feb. 16, 2017. In the past, the stock has fallen 2.4% on average in the week following eight straight days of gains.

Shares of Sobha gained a total of 42% during the streak while the S&P BSE Sensex Index increased 4.1%. Today, the stock rose 6.8% to Rs 822 apiece.

Relative Strength Index on the stock was at 84, suggesting that it may be overbought.

Shares of Gokaldas Exports Ltd. rose 5% to Rs 208.10 apiece after the company commenced commercial production at the new manufacturing unit in Tumkur, Karnataka.

• The unit will contribute about 4.5% to the current capacity on achievement of full ramp up and productivity.

• In an analyst call Sunday, Gokaldas Exports listed several opportunities to pick up share in global apparel trade and focused on measures brought in to improve efficiencies and customer engagement.

• The company said that it raised Rs 100 crore throught QIP and sale of unused property in FY2019 as it detailed its financial management and fund infusion amid the pandemic.

• Stock price volatility over the past year has been 65.9% vs company average of 53.5%.

• Shares of Bank of Maharashtra added over 7%, the steepest increase in three months, to Rs 19.35 apiece.

• Trading volume was 11.2 million shares, triple the 20-day average of 4.13 million shares for this time of the day.

• In the past year, the stock had a similar or greater gain 13 times at the close.

• India’s top energy companies, Petronet LNG Ltd. and ONGC Videsh Ltd., are having discussions about buying a stake in Russia’s planned liquefied-gas project Arctic LNG 2 as their government seeks to secure supplies of the cleaner burning fuel.

• Talks about acquiring a joint 9.9% stake from Novatek PJSC are still continuing and no final decisions have been made.

• Source: Member of the Indian Energy Delegation in Moscow

Prime Minister Narendra Modi is pushing for a gas-based economy by doubling the share of the super-chilled fuel to 15% of the country’s energy mix by 2030, which would boost imports of the fuel.

Russia, which vies for a global leadership in liquefied-gas supplies and aims to build a number of production plants in the Arctic with a focus on deliveries to Asia, would be a natural LNG ally for the South Asian nation.

• Petronet LNG, ONGC Videsh and Novatek didn’t immediately respond to requests for comment.

India’s Supreme Court has rejected 63 Moons Technologies Ltd.’s request to urgently halt sale of Dewan Housing Finance Corp. to Piramal Enterprises Ltd’s unit.

• Top court asks National Company Law Appellate Tribunal to complete hearing in two months on 63 Moons’ petition against the approval to sale

• Top court’s three-judge panel headed by L.N. Rao says it is not expressing any view on merits of the case

• NCLAT is scheduled to hear the case on Sept. 15, lawyers inform top court during hearing

Shares of IndiaMart InterMesh Ltd. rose 8.74%, the most in five sessions, to Rs 8,849 apiece. Trading volume was 8.5 times the 30-day average for this time of day.

Relative Strength Index on the stock was 80, suggesting that it may be overbought.

IndiaMart trades at 76 times its estimated earnings per share for the coming year.

Analysts have seven 'buy', four 'hold' and two 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12.3%.

Since its inclusion in the derivatives segment(F&O Contracts) on NSE on August 27, IndiaMart InterMesh shares have risen 23%

Parsvnath Developers Ltd. has relaunched its unsold stock of ready to move-in floors and plot of the 2006 Integrated Township ‘ Parsvnath City’ project in Jodhpur, spread over 110 acres.

In an exchange filing, the company said that the project is relaunched to unlock the value after obtaining all the necessary sanctions and approvals in the township. The company has also applied for its RERA registration.

Shares of Parsvnath Developers advanced 4% to Rs 15.45 apiece in early trade before paring gains. At 1 PM, shares of Parsvnath Developers were up 1%. Stock price volatility over the past year has been 55.7% compared to 41.1% overall average for the stock. Shares of Parvsnath Developers added 200% in 2021 so far compared to 23.1% rise for Sensex.

NMDC Ltd. has fixed lump ore price as Rs 6,150 per tonne. This is for lump ore of 65.5%, 6-40 mm category.

In an exchange filing, the company said it has priced fines (64%, -10 mm) at Rs 5,160 per tonne. The above prices are excluding Royalty, DMF, NMET, Cess, Forest Permit Fee and other taxes.

Of the 24 analysts tracking the company, 13 maintained 'buy', 6 maintained 'hold' and 6 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 29%.

Shares of Indian Railway Catering & Tourism Corp Ltd. rose 6% to a record Rs 3,040.00 apiece.

• Trading volume was 3 times the 30-day average for this time of the day.

• Relative Strength index on the stock was at 78, suggesting that it may be overbought.

• Of the 9 analysts tracking the company, 8 maintained ‘buy’ and 1 maintained ‘hold’ recommendation.

• The overall consensus price of analysts tracked by Bloomberg implied a downside of 3.1%

India's stock benchmarks rose, aided by gains in realty, energy and auto stocks, amidst mixed global cues following the weaker-than-expected U.S. payroll data for the month of August.

The S&P BSE Sensex rose 0.22% to 58,258.62. The 30-stock index had hit a record 58,515.85 in intraday trade. This is the first time the Sensex crossed the 58,500 mark. The NSE Nifty 50 advanced by similar magnitude to 17,366.05. Nifty 50 hit a record 17,429.55 in intraday trade as the 50-stock index crossed 17,400 for the first time. Reliance Industries Ltd. contributed the most to the index gain and had the largest move, increasing 2.1%. In midday trading, 28 of 50 shares rose, while 22 fell.

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.4%. Twelve out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Realty adding 1.5%.

The market breadth was skewed in favour of bulls. About 1,687 stocks advanced, 1,497 declined and 169 remained unchanged.

Shares of Ahluwalia Contracts India Ltd. advanced over 6.5% to Rs 408 apiece after the company secured a new order worth Rs 890 crore.

In an exchange filing, the company said that the order pertained to the construction of Animal Science University at Patna. With the latest order, the total order inflow for Ahluwalia Contracts in FY2021-22 stood at Rs 1,119 crore.

Of the 13 analysts tracking the company, 11 maintained ‘buy’ and 2 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12%.

Alembic Pharmaceuticals Ltd. has announced that its joint venture, Aleor Dermaceuticals Ltd. received the U.S. FDA’s final approval for Metronidazole Gel USP, 1%.

• Aleor Dermaceuticals is a 60-40 joint venture between Alembic Pharma and Orbicular Pharmaceutical Technologies Pvt. Ltd.

• The approved ANDA (Abbreviated New Drug Application) is therapeutically equivalent to the reference listed drug product, Metrogel Gel used to treat inflammatory lesions of rosacea.

• Metronidazole Gel USP, 1% has an estimated market size of $29 million for twelve months ending June 2021, according to IQVIA.

• Alembic Pharma has a cumulative total of 149 ANDA approvals from U.S. FDA.

• Shares of Alembic Pharma advanced over 1.2% to Rs 784.25 apiece. Of the 19 analysts tracking the company, 7 maintained ‘buy’, 7 maintained ‘hold’ and 5 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.5%.

Indian bonds advanced for a sixth day in the longest gaining streak since April, supported by the highest banking-system liquidity in more than a decade and waning expectations of the Federal Reserve reducing asset purchases anytime soon after weak jobs data. The rupee is steady.

• 10-year yields fell by 1bp to 6.15%; down by 10bps last week, the biggest weekly drop since April.

• USD/INR steady at 73.0450 on Monday; down 1.86% in the last two weeks.

• Global Funds bought net Rs 769 crore of India stocks Friday: NSE

• They sold Rs 186 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 272 crore of corporate debt.

• State-run banks sold Rs 3,550 crore of sovereign bonds on Sept. 3: CCIL data. Foreign banks bought Rs 840 crore of bonds.

Shares of ICICI Lombard General Insurance Co Ltd. shed over 3.5%, the steepest intraday decline in over 5 weeks to Rs 1,645.35 apiece.

IRDAI granted final approval for the demerger of the general insurance business of Bharti AXA General Insurance Company to ICICI Lombard by way of a scheme of arrangement.

The demerger and transfer of general insurance business shall be effective within three days from the date of the final approval, the company said in an exchange filing.

Of the 25 analysts tracking the company, 16 maintained ‘buy’, 4 maintained ‘hold’ and 5 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 0.5%.

Maturities across the India sovereign yield curve were little changed in Monday morning trading.

• The 4-year yield remained unchanged at 5.182%

• The 10-year yield was little changed at 6.153%

• The 14-year yield was little changed at 6.683%

• The 4-year-10-year yield spread was 97.1bps, vs previous close 97.5bps

Shares of Unison Metals Ltd. advanced 4.98% to Rs 85.35 apiece on the BSE, after the company approved the issue of bonus equity shares in the proportion of 4:1, that is 4 fully paid-up equity shares for every 1 fully paid-up equity share held by the shareholders on the record date. The record date to receive bonus will be communicated later, the company said in an exchange filing.

Shares of HFCL Ltd. added 3.85% to Rs 71.45 apiece after the company informed exchanges post market hours Friday that it approve the fundraising plan.

HFCL intends to raise funds up to Rs 750 crore, by way of private placement or preferential issue or publish issue or rights issue or QIP or through any other permissible ways, subject to approval from shareholders. The annual general meeting is scheduled on September 30.

Zydus Cadila announced that its subsidiary received tentative approval from the U.S. FDA for its new drug application for Sitagliptin base 25, 50 and 100 mg tablets. The tablets are used to treat diabetes. Sitagliptin base contains the active moiety Sitagliptin in a different form that used in the branded reference product, Januvia (registered trademark of Merck).

Of the 35 analysts tracking the company, 17 maintained ‘buy’, 8 maintained ‘hold’ and 10 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 7.4%

Lupin Ltd. has announced a commercial partnership with non-profit drug developer, TB Alliance to manufacture highly drug-resistant anti-tuberculosis medicine. TB Alliance has granted Lupin, a non-exclusive license to manufacture the anti-tuberculosis drug pretomanid. In an exchange filing, Lupin said it intended to commercialise the medicine in approximately 140 countries and territories, including many of the highest TB burden countries around the world.

Shares of Lupin added 0.8% to Rs 977.15 apiece.Out 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 9.7%.

Shares of Ashapura Minechem Ltd. hit lower circuit, declining as much as 5% after a unit of Guinea’s military seized power and suspended the country’s constitution.

Ashapura has operations in Guinea through its unit Société Guinéenne des Mines de Fer. The West African nation is a key source of bauxite, the raw material used to make aluminum.

Shares of the mining company fell 5% to Rs 138.15 apiece on the news.

Shares of Barbeque Nation Hospitality Ltd advanced 4.7% to Rs 1,161.95 apiece after approving a nearly Rs 100 crore fund raise through the preferential issue of equity shares to multiple investors.

• In an exchange filing, Barbeque Nation said that its board has approved the allotment of 11,77,855 fully paid up shares of face value of Rs 5 each at a premium of Rs 844 per share, by preferential allotement to three allottees, (i) Massachuetts Institute of Technology, (ii) 238 Plan Associates LLC and (iii) Motilal Oswal Equity Opportunities Fund Series – II.

• The company has received in-principle approvals from BSE Ltd. and NSE Ltd. for issue of equity shares on preferential basis.

• Both the analysts tracking the company maintained a ‘buy’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4.7%.

Shares of Alok Industries Ltd. rose 13.9%, the most in 10 weeks, to Rs 25.40 apiece.

Trading volume was 3.98 million shares, five times the 20-day average of 8,79,253 shares for this time of the day.

Share price crossed above the 200-day simple moving average, indicating potential upward price momentum.

Shares of Engineers India Ltd. added 3.76% to Rs 74.60 apiece after the company bagged an order worth Rs 1,039 crore.

In an exchange filing post market hours Friday, Engineers India said that it secured an order from Chennai Petroleum Corporation Ltd. for the execution of services for 9 MMTPA Cauvery Basin Refinery (CBR) project at Nagapattinam, Tamil Nadu.

The total project schedule is 42 months for mechanical completion. Of the 14 analysts tracking the company, 11 maintained ‘buy’, 1 maintained ‘hold’ and 2 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 35.9%.

Shares of Mahindra & Mahindra Financial Services Ltd. advanced 5.54% to Rs 174.30 apiece after the company posted improvement in collection efficiency and disbursements in the month of August.

• In an exchange filing, Mahindra & Mahindra Financial Services said that disbursements in August were at Rs 2,150 crore, 57% higher for a year earlier.

• Collection efficiency was about 97% compared to 95% efficiency in July.

• Customer cash flows improved while the company witnessed a meaningful reduction in NPA contractions.

• The company also said that the liquidity position as on date was comfortable.

• 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 an upside of 1.8%.

India's stock benchmarks opened higher, led by gains in energy, power and realty stocks, amidst mixed global cues as investors digest weaker-than-expected August U.S. payroll data.

The S&P BSE Sensex rose 0.49% to a 58,413.77. The 30-stock index hit a record 58,480.20 in intraday trade. The NSE Nifty 50 advanced by similar magnitude to 17,398.80. Nifty hit a record 17,421.55 in in intraday trade, the first time the 50-stock index has crossed 17,400 mark. Reliance Industries Ltd. contributed the most to the index gain and had the largest move, increasing 3.4%. In early trading, 37 of 50 shares rose, while 13 fell.

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.7%. Barring S&P BSE Metal index, all the other 18 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Energy adding over 1.51%

The market breadth was skewed in favour of bulls. About 1,726 stocks advanced, 630 declined and 113 remained unchanged.

• The price increase for select models announced by Maruti Suzuki India Ltd. comes into effect from today.

• The company said that the price hike is due to the increase in various input costs.

• In an exchange filing, Maruti Suzuki said that the weighted average price increase in Ex Showroom Prices (Delhi) across select models is 1.9%.

VA Tech Wabag Ltd. secured an order worth $11.45 million from Dialog E&C Sdn. Bhd., Malaysia.

The order pertains to the establishment of a new Effluent Treatment Plant (ETP) for Pengerang Integrated Complex in Johor, Malaysia, VA Tech Wabag said in an exchange filing.

It will be constructed for PRPC Utilities and Facilities Sdn Bhd (PRPC UF), a subsidiary of Petronas Refiner & Petrochemical Corporation.

Wabag will be the technology vendor and will design the ETP comprising of two-stage biological treatment, advance oxidation process, ammonia stripper and drier facility for sludge treatment.

The company has earlier executed a $200 million state-of-the-art Integrated ETP for Pengerang Integrated Complex to ensure the reduction of contaminants below regulatory threshold.

S Natarajan, S&M Head - India Cluster at VA Tech Wabag said that the further consolidated the company's position as a pure play water technology player in the Oil & Gas segment and in South East Asian market.

Of the 4 analysts tracking the company, 2 maintained 'buy' and 2 maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 24.5%

India’s rupee and government bonds could add to recent gains after Saudi Arabia cut oil prices for sales to Asia next month by more than twice the expected amount. As a major importer of oil, India benefits from lower prices.

• USD/INR little changed at 73.0188 on Friday; down 1.86% in the last two weeks

• 10-year yields fell 2bps to 6.16% on Friday; fell by 10bps last week, the biggest weekly drop since April

• Global funds bought net Rs 769 crore of India stocks Friday: NSE

• They sold Rs 186 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 272 crore of corporate debt

• State-run banks sold Rs 3,550 crore of sovereign bonds on Sept. 3: CCIL data. Foreign banks bought Rs 840 crore rupees of bonds

Most Asian stocks rose on Monday amid an ongoing rally in Japan sparked by the planned exit of the prime minister and as traders mulled slower U.S. hiring that may delay a reduction in stimulus.

Japanese shares climbed more than 1%, following a three-decade high for the Topix on hopes of better pandemic management and more spending by Prime Minister Yoshihide Suga’s successor. Hong Kong and China also advanced. The dollar ticked up.

S&P 500 futures slipped. The gauge ended little changed Friday, the Nasdaq 100 edged up to a record and Treasury yields rose as investors digested disappointing U.S. payroll growth and faster-than-projected wage increases. U.S. markets are closed on Monday for the Labor Day holiday and there is no Treasuries cash trading.

India’s SGX Nifty 50 Index futures for September delivery rise 0.2% to 17,390.00, while MSCI Asia Pacific Index +0.5%. The NSE Nifty 50 gained 0.5% on Friday to 17,323.60.

The U.S. economy added 235,000 jobs in August -- the smallest gain in seven months -- as the delta virus variant spread. The soft report seems likely to prompt Federal Reserve policy makers to delay considering a move to scale back asset purchases at their September meeting. It also points to a challenging period of slower economic reopening and elevated price pressures.

Oil extended losses after Saudi Arabia slashed crude prices for Asian buyers. Elsewhere, gold was steady and Bitcoin was near $52,000.

Back home, Nuvoco Vistas is scheduled to report earnings on Monday. Britannia is holding their annual shareholders’ meeting. Foreign investors bought net Rs 1,330 crore of stocks on Sept. 2, according to NSDL website.