Sensex, Nifty Snap Winning Streak Dragged By I.T., Metal Stocks
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India's stock benchmarks snapped winning streak after advancing to record highs in intraday trade, as technology and metal stocks dragged.
The S&P BSE Sensex fell 0.37% to 57,338.21 and snapped a four-day winning streak. The 30-stock index had hit a record 57,918.71 in intraday trade. The NSE Nifty 50 declined by similar magnitude to 17,076.25, snapping a seven-day winning streak, joint longest in 2021. The 50-stock index hit a record 17,225.75 in intraday trade. Infosys Ltd. contributed the most to the index decline, decreasing 1.7%. Mahindra & Mahindra Ltd. had the largest drop, falling 3%. Today, 25 of 50 shares fell, while 25 rose.
The broader indices outperformed their larger peers with the S&P BSE MidCap adding 0.9% and S&P BSE SmallCap gaining 0.2%. Thirteen of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Realty adding 5.5%. On the flipside, S&P BSE Metal shed 1.8% and S&P BSE Information Technology index declined 1.35%.
The market breadth was skewed in favour of bears. About 1,509 stocks advanced, 1,668 declined and 153 remained unchanged.
“Heavy selling pressure in metals and I.T. was the prime reason for moderation in Nifty. real estate stocks were in focus today as ongoing traction in sales volume attracted investors towards this space”, Binod Modi wrote in a note. The Head – Strategy at Reliance Securities added that “while 1QFY22 GDP expanded 20.1% indicating a sharp recovery, there has been sharp contraction in sequential comparison due to second wave of COVID-19 and growth is still lagging from pre-pandemic level. Hence, economy still needs policy support from government and RBI, which is likely to persist".
NMDC August Sales At 2.91 Million Tonnes
NMDC Ltd. reported sales for Aug. of 2.91 million tonnes vs. 1.79 million tonnes YoY
August sales at 2.91 million tonnes, up 63% YoY
August production 3.06 million tonnes, up 89% YoY
S&P BSE Realty Index Up The Most Since February 1
TVS Motor August Vehicle Sales 2,90,694 Units
TVS Motor Company Ltd. registered sales of 2,90,694 units in August vs 2,87,398 units YoY.
August total two-wheeler sales at 2,74,313 units vs 2,77,226 units YoY
Domestic two-wheeler sales at 1,79,999 units vs 2,18,338 units YoY
Expect retails to improve as Covid curbs are eased and festive season boost.
Motorcycle sales at 1,33,789 units vs 1,19,878 units YoY
Scooter sales at 87,059 units vs 87,044 units YoY
Production and sales of premium two-wheelers were severely affected due to semiconductor shortage.
Total exports at 1,09,927 units vs 68,347 units YoY
Three-wheeler sales at 16,381 units vs 10,172 units YoY
Credit Suisse Picks Havells India, Voltas As Top Bets In Consumer Durables Sector
Shares of India’s consumer durables makers advanced after a Credit Suisse note which said that rapid changes in the sector provide scope for large companies to strengthen their presence.
Credit Suisse said that Indian electrical and consumer durables sectors represented a Rs 6 lakh crore opportunity, with 15% CAGR (FY20-25E).
Credit Suisse picked up Havells India Ltd. and Voltas Ltd. as the companies with highest potential due to the presence that they have already established in the market.