Sensex, Nifty Close Unchanged As Financials, Pharma Stocks Cap Gains

India’s stock benchmarks closed almost unchanged after hitting record highs in intraday trade, as gains in metals, energy, FMCG and tech stocks were offset by the losses in financials, realty and pharmaceutical stocks.

The S&P BSE Sensex pared all the intraday gains to close little changed at 55,944.21. The 30-stock index rose to record 56,198.13 in intra-day trade. The NSE Nifty 50 also closed almost unchanged at 16,634.65, a record close for the 50-stock index. Nifty 50 hit a record 16,712.45 in intra-day trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 0.9 percent. Adani Ports & Special Economic Zone Ltd. had the largest increase, rising 3.7 percent.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap adding 0.6%. Ten out of 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Consumer Durables shedding over 1% and S&P BSE Realty and Telecom indices slipping nearly 1%. On the flipside, S&P BSE Oil & Gas, S&P BSE Power & S&P BSE Energy indices rose over 1%.

The market breadth was skewed in favour of bulls. About 1,992 stocks advanced,1,213 declined and 105 remained unchanged.

"Benchmark Nifty hit a fresh record high, but failed to close above the 16,700 mark due to profit booking at higher levels. Technically, post the strong pullback rally, the index has formed a double top kind of reversal formation near the 16,700 resistance level, which is broadly negative for the market. However, the larger texture of the market is still bullish, but for day traders the 16,700 level would act as a major hurdle. Above the same, the uptrend could continue up to 16,750-16,790 levels. On the flip side, a strong possibility of quick intraday correction up to 16,580-16,550 levels is not ruled out if the Nifty succeeds to trade below 16,620", wrote Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd in a note.

Delhivery Pvt, an Indian logistics and supply chain startup plans to file a draft prospectus as soon as October for its initial public offering that could raise $1 billion

The company, backed by SoftBank Vision Fund and Carlyle Group Inc., is targeting a Mumbai listing before March next year. The offering could include both new and existing shares.

Source: People with knowledge on the matter.

Founded in 2011, Delhivery handles more than 1.5 million packages a day through its 43,000-strong team across India, according to its website.

Cipla Ltd. has entered into a joint venture with Kemwell Biopharma Pvt Ltd. for incorporation of a joint venture company.

This firm will undertake the business of developing, applying for and obtaining licenses for the manufacturing, commercialization, import and export of biologic products as well as licensing and outsourcing activities.

Cipla will hold 60% stake in the JV company on a fully diluted basis and the incorporation is done with an objective to enter the respiratory biosimilars space, according to exchange filing by Cipla.

Shares of Cipla shed 0.6% to Rs 912.15 on 3 p.m. Of the 40 analysts tracking the company, 35 maintained 'buy', 4 maintained 'hold' and 1 analyst maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.4%

Shares of Sugar companies climbed after the union cabinet decided to increase the Fair & Remunerative Price (FRP) for sugarcane to Rs 290 per quintal.

If the recovery is below 9.5%, then the farmers will be provided Rs 275 per quintal.

Shares of Dalmia Bharat Sugar & Industries, Balrampur Chini, Shree Renuka Sugars, Triveni Engineering & Industries advanced following the announcement.

Finance Minister Nirmala Sitharaman emphasised better credit flow for exports and urged banks to come up with specific plans for better credit expansion in north eastern states. She also hailed the performance of PSU banks collectively and stated that signs of revival were visible in Indian economy.

Highlights From Finance Minister's Press Conference

• PSBs have been requested to have discussions on future business with exporters and export industry bodies.

• Have emphasised the need for better credit flow to export and export-oriented companies.

• Nothing to say on bank privatisation at the moment.

• At this stage it is a little too much to safely assess the impact of monsoon.

• We can see revival in the country, irrespective of rainfall.

• Have asked banks to do a credit outreach program this year in every district of the country after October.

• Collectively public sector banks have done well.

• Individually too some of the PSU Banks have performed well.

• Even though PSU Banks were going through the pandemic and implementing various government schemes, they have not let the amalgamation processes suffer.

Adani Transmission Ltd. is higher for the ninth straight day, on track for the longest winning streak since the period ended June 26, 2020.

• Adani Trans has gained a total of 37% during the streak while the S&P BSE Sensex Index increased 2.9%.

• The stock added 5% in this session. The Relative strength index on the stock was at 79; indicating it may be overbought.

Adani Total Gas Ltd. is higher for the 10th straight day, on track for the longest winning streak since the period ended May 30, 2019.

• Adani Total Gas Ltd has gained a total of 40% during the streak while the Sensex increased 2.8%.

• The Relative strength index on the stocks was at 79; suggesting that the stock may be overbought.

Shares of Kaveri Seed Co Ltd. advanced 6.65% to Rs 618.85 apiece after the company informed the exchanges that its board of directors approved the proposal for the buyback of company's full-paid equity shares of face value Rs 2 each, for an aggregate amount of Rs 120 Crore at a price not exceeding Rs 850.

According to an exchange filing by the company, the indicative maximum number of shares proposed to be bought back at the maximum buyback size and price would be be 14,11,780 shares.

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 an upside of 24.2%

Shares of Linde India Ltd. added 7% to hit a record Rs 2,444.80 apiece as it extended gains for the ninth consecutive session.

• Trading volume was 7,98,522 shares, seven times the 20-day average of 1,08,320 shares for this time of the day.

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

• Linde India trades at 57 times its estimated earnings per share for the coming year. Analysts have two buy, no hold and no sell recommendations on the stock.

Shares of Borosil Renewables Ltd. gained as much as 4.9% to Rs 309 apiece after the glassware company's board of directors approved a resolution for raising up to Rs 500 crore in fresh capital.

The funds could be raised either through a public offer, rights issue, issuance of American or global depository receipts, issuance of foreign currency convertible bonds, qualified institutional placement or a preferential issue or through a combination of these methods, it said in an exchange filing.

India’s stock benchmarks rose for the third session, aided by gains in energy, metals, technology and FMCG stocks.

The S&P BSE Sensex rose 0.14% to 56,034.91. The 30-stock index hit a record high 56,198.13 in intraday trade. The NSE Nifty 50 advanced 0.25% to 16,665.70. The 50-index also hit a record high 16,712.45 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.3 percent. Adani Ports & Special Economic Zone Ltd. had the largest increase, rising 3.1 percent.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining over 0.6%. Twelve out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Energy and S&P BSE Oil & Gas adding over 1.5%. S&P BSE Metal index rose over 1%.

The market breadth was skewed in favour of bulls. About 2,054 stocks advanced, 1,002 declined and 133 remained unchanged.

JSW Steel USA Ohio Inc. plans to raise long-term funds of more than 30 years in the U.S. municipal bond markets, Indian parent JSW Steel said in an exchange filing. JSW Steel USA Ohio is a wholly owned indirect subsidiary of JSW Steel.

The Jefferson County Port Authority will be issuing special, limited obligations bonds, the proceeds of which will be used for extending a loan to JSW Ohio. JSW Steel shall provide a guarantee on behalf of JSW Ohio, which will be utilized to secure the repayment of the bonds.

The proceeds of the loan will be used to refinance or reimburse the cost of modernization of an electric arc furnace and the caster modernization.

Shares of JSW Steel added 1.35% to Rs 701 apiece. Of the 32 analysts tracking the company, 18 maintained 'buy', 9 maintained 'hold' and 5 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.5%.

Shares of Allied Digital Services Ltd. jumped 10% to Rs 65.45 apiece after the company won a six year contract worth Rs 650 crore to transform IT operating model and infrastructure landscape across workplace management, for a global automotive giant.

According to an exchange filing by the company, the contract would span work in many countries. Shares of Allied Technologies advanced 61.6% in 2021so far compared to 18% gains for Sensex.

Hindustan Aeronautics Ltd. rose 4.7% to Rs 1,215, higher than any close since Aug. 19, 2020, from Rs 1,160.

• Trading volume was 1.03 million shares, five times the 20-day average of 215,759 shares for this time of day.

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

• Analysts have five buy, no hold, and no sell recommendations on the stock.

Shares of Star Cement Ltd. declined 6% to Rs 109.20 apiece after the company's stock turned ex-share buyback today. The company has fixed Thursday as the record date for share buyback.

Star Cement had earlier fixed today as the record date before it revised it to tomorrow.

The company's board had earlier approved the buyback up to 82 lakh shares at Rs 150 per share through the tender offer route for an aggregate consideration of Rs 123 crore

India’s 10-year benchmark bond extended losses, with the yield rising to the highest since March.

10-year bond yield rose 1bp to 6.26% after rising to 6.27% earlier, the highest since March 10; yields are up 4bps in four sessions to Wednesday

Jindal Steel & Power Ltd. plans to spend $2.4 billion on expansion projects in Odisha over the next six years. The company targets to almost double production capacity by 2025, according to an investor presentation with stock exchanges.

• Jindal Steel & Power Ltd. intends to raise steel production capacity to 15.9 million tonnes by 2025 from 8.5 million tonnes now through brownfield expansions at a cost of $390 a ton.

• Expansion plans also include investment in cost saving projects.The company planst to raise its pellet plant capacity to 21 million tonnes by March 2024 fom 9 million tonnes right now.

Shares of Jindal Steel & Power advanced 2.66% To Rs 382.65 apiece. Out of the 26 analysts tracking the company, 23 maintained 'buy', 2 maintained 'hold' and 1 maintained 'sell' recommendations. Nine analysts have revised the target price higher over the past month.

The overall consensus price of analysts tracked by Bloomberg implied an upside of 47.5%. Shares of Jindal Steel & Power added 41.8% in 2021 so far compared to 72.15% gains for S&P BSE Metal index

Shares of HDFC Life Insurance Co. rose 3.09% to Rs 691.85 apiece.

• Trading volume was 3.08 million shares, six times the 20-day average of 5,19,400 shares for this time of day.

• The company trades at 92 times its estimated earnings per share for the coming year.

• Analysts have 28 'buy', 9 'hold' and 2 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.9%.

Shares of Adani Ports and Special Economic Zone Ltd. climbed 2.82% to Rs 715 apiece after the company informed the exchanges post market hours Tuesday that it received order from Andhra Pradesh Maritime Board intimating the approval for the proposal to acquire 10.4% stake in Gangavaram Port Ltd by the company.

• GPL has a capacity of 64 MMT of cargo and reported an operational revenue of Rs 1,057 crore in the financial year 2020-21.

• The transaction is expected to be completed in 1 month.

• Of the 25 analysts tracking the company, 22 maintained 'buy' and 3 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21%.

Shares of Jubilant Pharmova Ltd. advanced 4.10%, the most since Aug 11, to Rs 618.70 apiece after about 2 million shares changed hands on NSE, according to data compiled by Bloomberg

Trading volume was almost triple the 20-day average for this time of the day.

Of the 8 analysts tracking the company, 6 maintained 'buy', 1 maintained 'hold' and 1 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 35%

India’s stock benchmarks advanced, aided by metal stocks, amid positive global trade. Investors await the Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium later in the week as they look the gauge the growth outlook of the U.S. central bank.

The S&P BSE Sensex rose 0.34% to 56,148.51. The NSE Nifty 50 advanced by similar magnitude to 16,680.20. Housing Development Finance Corp. contributed the most to the index gain, increasing 0.8%. Tata Motors Ltd. had the largest increase, rising 2.3%

The broader indices outperformed their larger peers with the S&P BSE MidCap adding 0.6% and the S&P BSE SmallCap gaining 1%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal and S&P BSE Power adding over 1%.

The market breadth was skewed in favour of bulls. About 1,816 stocks advanced, 553 declined and 80 remained unchanged.

Indian bonds may extend losses amid elevated oil prices as well as U.S. Treasury yields.

• USD/INR little changed at 74.1913

• 10-year yields up 1bp at 6.25% on Tuesday; yields have surged 3bps in the last three trading sessions and are up ~20bps since end-March amid rising expectations of policy normalization by the RBI.

• Given the RBI’s focus on sustaining growth rather than just revival and expected easing in near term inflation pressure, upticks in short tenor rates to either price in an earlier trajectory to normalization and/or sharper pace of rate hikes may still be a receive, Citi says in a note.

• Given the overall cautious approach of the RBI to normalization, the swap curve may steepen further reflecting concerns that policy may remain behind the inflation curve and real rates may remain negative for a prolonged period.

Vijaya Diagnostic Centre Ltd.’s shareholders are seeking to sell as many as 35.7 million shares in its initial public offering, according to its Red Herring Propsectus on issue manager Edelweiss Financial’s website.

• Founder S. Surendranath Reddy will sell up to 5.1 million shares, while investors Karakoram Ltd. will offload up to 29.5 million shares and Kedaara Capital will sell up to 1.1 million shares in IPO

• Hyderabad-based diagnostic chain isn’t selling any new shares in the IPO

• ICICI Securities and Kotak Mahindra Capital are the other banks managing the IPO, which constitutes 35% of the equity of the company.

Asian stocks rose on Wednesday after another record for U.S. shares on improving confidence in the economic recovery from the pandemic. Treasuries were steady and the dollar edged higher.

Equities advanced in Japan and Hong Kong, including a further rebound in Chinese technology stocks. U.S. futures fluctuated after the S&P 500 and the Nasdaq 100 closed at all-time highs, with Best Buy Co. the latest U.S. retailer to report robust consumer demand.

India’s SGX Nifty 50 Index futures for August delivery rose 0.3% to 16,672.00, while MSCI Asia Pacific Index gained 0.3%. The NSE Nifty 50 Index gained 0.8% on Tuesday to 16,624.60.

In commodity markets, oil and iron ore retained gains in part on China’s success in stamping out virus flare-ups, which is easing some of the concerns about the impact of the delta variant on demand.

In the latest steps following China’s regulatory crackdown, the Securities and Exchange Commission said it will demand that the more than 250 Chinese companies trading in U.S. markets better inform investors about political and regulatory risks. The Nasdaq Golden Dragon China Index surged overnight after solid results from JD.com Inc. lured investors

Company earnings, expanding vaccinations and support from monetary policy are repairing sentiment after a bout of jitters over the economic outlook caused by the fast-spreading delta strain. The next key read on the central bank outlook is due later this week when Federal Reserve Chairman Jerome Powell speaks at the Jackson Hole symposium.

Back home, P&G Hygiene is scheduled to report earnings on Wednesday. Kotak, Cipla, are among companies holding their annual shareholders’ meeting. Foreign investors sold net Rs 1,355 crore of stocks on Monday, according to NSDL website.