Sensex Ends Above 58,000; Nifty Logs Best Week Since February
India's stock benchmarks closed at record and registered best weekly gain in months, aided by gains in energy, oil & gas and metal stocks. Sentiment improved due to positive economic data as the August services PMI rose to the highest in 18 months.
The S&P BSE Sensex gained 0.48% to a 58,129.95, highest ever close. The 30-stock index rose to a record 58,194.79 in intraday trade. This is the first time Sensex has crossed 58,000 mark. The NSE Nifty 50 advanced by similar magnitude to 17,323.60. The 50-stock index hit a record 17,340.10 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain and had the largest move, increasing 4.1%. Today, 35 of 50 shares rose, while 15 fell.
The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.4%. Fifteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Energy adding over 3.5% and S&P BSE Oil & Gas gaining 2.25%.
For the week, Sensex rose 3.6%, the best weekly gain since May. Nifty advanced 3.70% in the past five sessions, the best weekly gain since February.
The market breadth was skewed in favour of bulls. About 1,732 stocks advanced, 1,467 declined and 139 remained unchanged.
"Buying action continued as positive global markets are helping the sentiment to remain bullish in local markets. Benchmark Nifty has formed a strong bullish candle on weekly charts which is broadly positive. On daily and intraday charts, it also maintains a breakout continuation formation indicating further uptrend from current levels. While the short-term trend remains positive, some profit booking could be in the offing as traders may prefer to book some profits near the 17500 resistance level", Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. wrote in a note.
Tata Motors Opens 70 New Sales Outlets Across South India
Shares of Tata Motors Ltd. added 1.1% to Rs 296.45 apiece after the company opened 70 new sales outlets across South India in one go.
In a statement, Tata Motors said that the new outlets have been strategically mapped to key emerging markets in southern region.
With the addition of new showrooms, Tata Motors’ network in South India will be 272 and retail footprint across the country will grow to 980.
Of the 33 analysts tracking the company, 20 maintained ‘buy’, 7 maintained ‘hold’ and 6 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 20.4%
India Sells Rs 26,000 Crore Of Bonds As Planned: RBI
India sells Rs 14,000 crore of 6.1% 2031 bonds at 6.1699% cutoff yield vs 6.18% estimated in a Bloomberg survey.
Sells Rs 3,000 crore of 4.26% 2023 bonds at 4.0721% vs 4.10% est.
Sells Rs 9,000 crore of 6.76% 2061 bonds at 7.0227% vs 7.05% est.
PM: Mazagon Dock Will Partner Zvezda For Construction Of Commercial Ships
Shares of Mazagon Dock Shipbuilders Ltd. jumped 8.77%, the most in nearly 3 months, to Rs 262.35 apiece after Prime Minister Modi said that the company will partner with Russian Firm Zvezda for the construction of the some of the most important commercial ships in the world, during his virtual address at Eastern Economic Forum 2021.
Shriram City Jumps 17% to 52-Week High; Volume Triples
Shares of Shriram City Union Finance Ltd. rose 17.25% to 52-week high of Rs 2,482 apiece. The rise comes ahead of an extraordinary shareholder meeting scheduled on September 8.
Trading volume was triple the average for this time of day.
Trading volume was 267,243 shares, triple the 20-day average of 85,610 shares for this time of day.
The relative strength index on the stock was above 70, indicating it may be overbought.
Shriram City trades at 14 times its estimated earnings per share for the coming year.
Analysts have 14 'buy', two 'hold' and no 'sell' recommendations on the stock.