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.

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 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.

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.

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.

• Housing & Urban Development Corp. is higher for the ninth straight day, on track for the longest winning streak since the period ended Dec. 28, 2017.

• HUDCO has gained a total of 10% during the streak while the Sensex Index increased 4.3%.

• The company's strategic activity over the past 3 months included 4 M&A deals and 2 investments.

Indian companies are seeing increasing signs of accelerating exports as most major economies rebound from the impact of Covid-19 and are planning to pursue large capex programs, Bank of America analyst Amish Shahwrites in a note.

• BofA says the U.S. Senate’s approval for $1 trillion infrastructure spending has potential to open up additional export opportunities for Indian companies

• A large share of the U.S. budget is expected to go toward core infrastructure such as highways, roads and bridges; this could provide openings for construction-linked capital goods suppliers like Cummins India and EPC firms such as Larsen & Toubro.

• India power-transmission and distribution contractors have opportunity in $73 billion spending planned for modernizing the U.S. electrical grid, as these companies have sufficient overseas experience

• L&T, Cummins India, Adani Ports and Container Corp. are among the preferred industrials stocks linked to the exports theme:BofA

• Indian companies are now looking to expand share of exports while their utilization levels remain low at 50%-85% of capacity;

• Some companies are planning M&A activity specifically geared toward export markets, the note says

United Breweries Ltd. is higher for the seventh straight day, on track for the longest winning streak since the period ended Aug. 25, 2020.

United Breweries has gained a total of 10% during the streak while Sensex Index increased 3.7%.

Relative strength index on the stock was 73, suggesting that the stock may be overbought.

Out of the 17 analysts tracking the company, 12 maintained 'buy', 3 maintained 'hold' and 2 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 3.7%.

Some SpiceJet airline employees went on strike at the Delhi airport on Friday morning over concerns related to their salaries and disbursement, PTI reports, citing unidentified people familiar with the matter.

• A SpiceJet spokesperson told PTI that the airline’s flight operations at the Delhi airport are functioning normally and that some employees met senior officials and the “matter is being resolved”

India’s state-owned Oil & Natural Gas Corp has been excluded from the world’s biggest sovereign wealth fund, due to the “unacceptable risk that the company is contributing to serious violations of the rights of individuals” in its joint ventures with South Sudan’s national oil company Nile Petroleum Corporation.

The exclusion was announced by Norges Bank late Thursday after a recommendation from the Council on Ethics, an independent body that investigates possible norm breaches in the wealth fund’s $1.4 trillion portfolio. The Norwegian wealth fund is the world’s single largest investor in listed companies, owning about 1.4% globally.

The ethics council said that companies operating in situations of war and conflict must be particularly careful when there’s a known risk for norm violations. “Such care also applies to their choice of business partners,” it said in its assessment.

ONGC told the Council on Ethics that “no incidents of human rights abuses have been reported within the joint ventures’ areas of operation”, and that there are no links between assaults on the civilian population and the company’s operations

Renaissance Jewelry New York Inc., a wholly owned subsidiary of Renaissance Global Ltd. has acquired the business of Everyday Elegance Jewelry.

Everyday Elegance reported a revenue of $1.2 million for FY20. According to an exchange filing by Renaissance Global, the acquisition is in-sync with the company’s strategy to expand presence in the high margin global branded jewellery space. An asset purchase agreement has already been signed with the target entity.

The cost of the acquisition was $0.9 million. This investment is through cash on the company’s balance sheet.

Everyday Elegance specializes in high quality metals like 14K gold, platinum, sterling silver, top grade diamond alternative gemstones like cubic zirconia moissanite. The company has a portfolio of over 200 products with strong presence in ecommerce marketplaces, predominantly amazon.com.

Reliance Industries Ltd., the nation’s most valuable company, rose as much as 4.38% to a record Rs 2,395.00 apiece in intraday day before settling with 4.1% gains. Trading volume climbed to nearly 140% of the three-month average.

The company’s Chairman Mukesh Ambani said on Friday that India and Reliance will aggressively pursue making green hydrogen the most affordable fuel. The fuel offers zero-carbon energy and is key to a sustainable world, he said. 

India’s benchmark bonds are headed for their best week since April, on the back of hefty liquidity and strong demand from mutual funds. The rupee is headed for its second successive week of gains.

• Traders are awaiting a Rs 26,000 crore debt sale later today

• The auction should be well bid today with the demand-supply equation turning a bit favorable, says Debendra Kumar Dash, head of fixed income at AU Small Finance Bank

• Shares of Blue Dart Express Ltd. rose 4.03%, the most in 15 weeks, to Rs 6,138 apiece. Blue Dart shares have risen for five consecutive sessions.

• Trading volume was 65,275 shares, quadruple the 20-day average of 14,959 shares for this time of the day.

• Blue Dart trades at 92 times its estimated earnings per share for the coming year.

• Analysts have eight 'buy', no 'hold' and two 'sell' recommendations on the stock.

Shares of TTK Prestige Ltd. advanced 2% to Rs 8900 apiece after the company completed the expansion of capacity at its plant at Karjan, Vadodara district in Gujarat.

In an exchange filing, the company said that the capacity expansion is with respect to non-stick cookware with an added capacity of 4 million pieces. The commercial production from this expanded capacity has begun from today.

Of the 11 analysts tracking the company, eight maintained ‘buy’, 2 maintained ‘hold’ and 1 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.9%.

Maruti Suzuki India Ltd. will undertake a recall of some petrol variants of Ciaz, Ertiga, Vitara Brezza, S-Cross and XL6 to inspect for a possible defect in motor generator unit, according to a stock exchange filing.

• The cars were made between May 4, 2018 and Oct. 27, 2020

• Maruti will inspect/replace motor generator unit of the cars for free; replacement of the affected part will start from November first week

• Affected vehicle owners would be receiving a communication from Maruti Suzuki authorized workshops; customers should avoid driving in water logged areas and direct water spray on electrical/electronic parts in the vehicle until then.

India's stock benchmarks rose, aided by gains in metals, auto, realty and energy stocks and are on course for best weekly gains since May. Sentiment improved due to positive economic data as the August services PMI rose to the highest in 18 months.

The S&P BSE Sensex rose 0.23% to 57,983.49. The 30-stock index had hit a record 58,115.69 in intraday trade. This is the first time the Sensex crossed the 58,000 mark. The NSE Nifty 50 advanced by similar magnitude to 17,283.20. Reliance Industries Ltd. contributed the most to the index gain, and had the largest increase, rising 3.2%. In midday trading, 28 of 50 shares rose, while 22 fell.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.3%. Fourteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Energy adding 2.6%.

The market breadth was skewed in favour of bulls. About 1,743 stocks advanced, 1,335 declined and 142 remained unchanged.

ESDS Software Solutions Ltd. seeks to raise Rs 322 crore ($44.1 million) selling new shares in an initial public offering, while its shareholders plan to sell as many as 21.5 million shares in an offer-for-sale, according to its draft prospectus on issue manager Axis Capital’s website.

• Shareholders seeking to sell shares in the IPO include GEF ESDS Partners LLC selling up to 4.23 million shares, South Asia Growth Fund II L.P. selling up to 16.9 million shares; founder Sarla Prakashchandra Somani is selling 400,000 shares in IPO.

• The Mumbai-based IT company, which provides cloud services, is considering a pre-IPO placement to raise 600 million rupees; new share issue in IPO will be lower if that sale happens.

• IIFL Securities is the other bank managing the offering.

The S&P BSE Sensex is little changed after gaining as much as 0.5%; Nifty is trading flat.

• Thirteen of 19 sector sub-indexes are still trading in the green, led by a gauge of energy stocks

• Measure of finance companies fell 0.4%

• HDFC Bank and Housing Development Finance were biggest drags on Sensex

Steel Strips Wheels Ltd. has approved subdivision of equity shares from 1 share of face value of Rs 10 each to 2 equity shares of face value of Rs 5 each. The record date for the purpose of subdivision of shares will be decided after getting the approval from shareholders.

The company expects the share split to provide enhanced liquidity to the shares in the stock market and encourage participation of small investors, according to an exchange filing by Steel Strips Wheels.

The relative strength index on the stock was 76, suggesting that it may be overbought.

Cost of electrolysis for green hydrogen is currently high, but it’s expected to fall in coming years, Reliance Industries Chairman Mukesh Ambani said in a virtual speech at an industry event on climate change.

• Global efforts are on to make green hydrogen the most affordable fuel by bringing down its cost initially below $2/kg.

• India and Reliance will aggressively pursue this target and will achieve it well before the end of this decade.

• Green hydrogen to attract significant investments, green hydrogen is a zero-carbon energy and key to sustainable world.

• World needs to achieve absolute emissions reduction to mitigate climate change.

• India can easily have 1,000 GW of solar generation using just 0.5% of its land.

• Reliance has started developing the clean energy projects at Jamnagar.

• Reliance to develop end-to-end renewable energy ecosystem.

Bharti Airtel Ltd.’s $2.8 billion rights issue is credit positive for the company as the fresh capital will keep leverage stable amid growing investments in 5G, ongoing cash payments for spectrum and a settlement payment related to the AGR dispute, according to Moody’s.

Moody’s expects proceeds from the transaction to be used for debt repayment, capital spending and growth initiatives such as more aggressive subscriber growth to wrest market share from India’s struggling third-largest operator, Vodafone Idea.

The equity transaction is credit neutral for Bharti’s 31.7% shareholder, Singapore Telecommunications, Moody’s said in a note.

Vijaya Diagnostic Centre Ltd.'s initial share sale subscribed more than three times on the final day of subscription, at the time markets closed Friday.

Subscription Details: Day 3

The IPO was subscribed 3.36 times as of 3 p.m. on Sept. 3.

• Institutional investors: 9.73 times.

• Non-institutional investors: 0.41 times.

• Retail investors: 1.01 times.

• Employees: 0.78 times.

Investors continued to bid for shares of Ami Organics Ltd. in its Rs 570-crore initial public offering on the final day of subscription.

Subscription Details: Day 3

The IPO was subscribed 41.17 times as of 3 p.m. on Sept. 3.

• Institutional investors: 49.80 times

• Non-institutional investors: 97.91 times

• Retail investors: 11.97 times

Follow the live subscription updates here:

• Vijaya Diagnostic Centre IPO Day 3 Subscription Updates

• Ami Organics IPO Day 3 Subscription Updates

Shares of IRB Infrastructure Developers Ltd. added 4% to Rs 174.90 apiece after the company emerged as a preferred bidder for the construction of six lanes of 20,060 km highway hybrid annuity project in Tamil Nadu. The cost outlay for the project is Rs 909 crore. This is the fourth hybrid annuity project for IRB Infra.

The project is part of India’s ambitious ‘Bharatmala Pariyojana’.

The concession will comprise 730 days for construction and 15 years Operations & maintenance rights thereafter.

In an exchange filing post market hours Thursday, the company said its order book will stand at Rs 14,189 crore upon the award of this project.

Of the 11 analysts tracking the company, 10 maintained ‘buy’ and 1 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8%.

Shares of SH Kelkar & Co Ltd. added nearly 13% to Rs 170 apiece after it won an order in the home care segment from a large global MNC player in domestic FMCG market.

In an exchange filing, the company said that the company’s robust R&D capabilities led to the filing of patents in the field of fragrance and novel aroma molecules, which paved the way for this order win.

SH Kelkar had temporarily suspended operations at its Mahad unit on July 22 due to unprecedented rains. The company said that the operations and productive activities at the unit have restarted in a calibrated manner from September 1.

All the five analysts tracking the company maintained ‘buy’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.7%.

IHS Markit released India’s August composite purchasing managers’ index.

• Index rose to 55.4 from 49.2 in July; Year ago 46; Highest reading since April 2021.

• New orders rose to 55.5 vs 49.8 in July, highest reading since April 2021 and reversed contraction trend,

• Employment rose vs prior month to the highest reading since March 2020

Shares of RailTel Corp of India Ltd. added nearly 4.7% to Rs 131 apiece after it receive a contract from Indian Air Forcce.

• In an exchange filing, RailTel Corp said that the contract from Directorate of Information Technology, Indian Air Force, Ministry of Defence pertained to the implementation of secure OPS Network.

• The contract value was Rs 299.95 crore, inclusive of GST.

• The work will be executed over a period of 12 months, the company said.

High fuel prices are having an “unfavorable impact” on Mahindra Logistics Ltd.’s operations, Chief Executive Officer Rampraveen Swaminathan said in an interview to Bloomberg Television on Friday.

• “Higher fuel prices and commodity prices have been a challenge. There’s a fair amount of disruption across all supply chains right now,” Swaminathan said.

Mahindra Logistics aims to be carbon neutral by 2040, the CEO said

Company is focused on last-mile cargo mobility space for electrification

• “That’s a program for which we are committed to roll out 3,000 vehicles over the next few years. We have a fleet of 500 vehicles right now. We are seeing a lot of positive interest,” said Swaminathan

• 20%-25% of last-mile business is trending toward electrification, he said.

Shares of Mahindra Logistics added 1% to Rs 745.15 apiece in intraday trade before paring the gains. Of the 13 analysts tracking the company, 9 maintained 'buy', 2 maintained 'hold' and 2 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 10.5%.

• Indian e-commerce retailer Snapdeal Pvt is considering an IPO that could raise $400 million, joining a growing list of startups preparing to tap capital markets as the nation's digital economy booms.

• The SoftBank Group Corp backed company is speaking with advisers about a potential listing in Mumbai that could value it at as much as $2.5 billion.

• IPO could take place as soon as next year.

• Discussions are still at an early stage, and the firm could decide not to proceed with the plan.

Source: People Familiar With The Matter

Representatives for Snapdeal and SoftBank declined to comment.

Indian stocks rose, with the benchmark equity index on course for its best week since May, as a pick up in the pace of vaccinations supported the record run in equities.

The S&P BSE SENSEX Index rose 0.37% to 58,069.08 as of 10:10 a.m. in Mumbai, extending its weekly advance to 3.4%, while the NSE Nifty 50 Index also climbed by a similar magnitude on Friday. Both indexes are set for fresh peaks, with Reliance Industries Ltd. providing the biggest boost. All but one of 19 sectoral indexes compiled by BSE Ltd. surged, led by a gauge of realty stocks.

An abundance of cash is driving gains in stocks, while India has stepped up Covid-19 vaccinations, according to government data.

Shares of MT Educare Ltd. shed 5.10% to Rs 7.45 apiece after the company defaulted on repayment of principal and interest amount to its lenders Xander Finance Private Ltd., Axis Bank and SVC Co-operative Bank.

In an exchange filing, the company said that the current default in principal amounted to Rs 6.25 crore and interest amounted to Rs 2.22 crore. The total amount of outstanding borrowings from banks and financial institutions stood at Rs 89.55 crore.

MT Educare said that the delay in repayment of principal and interest was due to the disruption in the business activities of Education sector because of Covid restrictions.

Shares of Zen Technologies Ltd. added 10% to Rs 153.80 apiece after the company bagged a new order worth Rs 155 crore from Indian Air Force.

• In an exchange filing, Zen Technologies said that the order pertained to the supply of Counter Unmanned Aircraft Systems (CUAS). The order will be carried out in a 12 month time frame.

• Zen Technologies said that this is first significant order for the company in anti-drone space and it secured the order after withstanding stiff competition from foreign companies partnering with Indian firms.

• The relative strength index on the stock was 86, indicating that it may be overbought.

• Shares of Zen Technologies jumped 20% for the last two sessions.

• Shares of Exide Industries Ltd. jumped 15% to Rs 204.90 apiece after HDFC Life Insurance Co. approved the acquisition of Exide Life Insurance Co. for Rs 6,697 crore.

• Exide Industries is the holding company for Exide Life.

India's stock benchmarks opened at record highs amid positive global cues as U.S. initial jobless claims fell to the lowest level since the early days of the pandemic. Investors await Services and Composite PMI data to assess the strength of economic recovery.

The S&P BSE Sensex rose 0.34% to a 58,050.61. This is the first time the 30-stock index crossed 58,000. Sensex hit a record high of 58,114.28 in intraday trade. The NSE Nifty 50 advanced by similar magnitude to 17,302.95. This is the first time Nifty has crossed 17,300. The 50-stock index hit a record 17,311.95 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.4%. Eicher Motors Ltd. had the largest increase, rising 3.4%. In early trading, 29 of 50 shares rose, while 21 fell.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 0.5%. Barring S&P BSE Teck, all the other 18 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Energy adding over 1%

The market breadth was skewed in favour of bulls. About 1,663 stocks advanced, 527 declined and 94 remained unchanged.

• HDFC Life Insurance Company Ltd. has approved the acquisition of 100% of the share capital of Exide Life Insurance Company Ltd. for a total consideration of Rs 6,687 crore.

• Rs 725.97 crore will be payable in cash and the balance by way of issue of 80.7 crore shares of face value of Rs 10 each of the company at a price of Rs 685 per share to Exide Industries Ltd.

• Upon completion of the transaction, the target is proposed to be merged into HDFC Life and will be initiated upon completion of the acquisition.

• Approval of shareholders for the proposed issue is sought to be obtained at an extra-ordinary general meeting to be held on September 29.

• Acquisition is expected to be completed before June 30, 2022.

• HDFC Life expects the transaction to result in value creation for customers, employees, shareholders and distribution partners.

• Vibha Padalkar, MD & CEO, HDFC Life said that the amalgamation provided an opportunity to realise synergies arising out of complementary business models.

• Exide Life's MD & CEO Kshitij Jain said that the transaction was a testimony to the reputation the company has built.

Source: Exchange filing by HDFC Life

• India bond traders are awaiting a Rs 26,000 crore debt sale later today. Bonds have rallied this week, while the rupee is headed for its second successive week of gains.

• One of the largest banks in India believes investors can safely hold onto their sovereign debt as yields aren’t poised to rise soon, even with some policy makers starting to talk about tightening.

• Investors shouldn’t worry about surprise losses and can keep their positions for now, as record low rates and an abundance of cash should help eke out more profit in coming quarters, Ashish Parthasarathy, treasurer at HDFC Bank Ltd., the country’s biggest lender by market value, said in an interview.

• U.S. Dollar/Rupee little changed at 73.0675 on Thursday, down 0.8% so far this week.

• 10-year yields fell 3bps to 6.17% on Thursday, down 8bps so far this week.

• Global funds bought Rs 170 crore of sovereign bonds under limits available to foreign investors, and added Rs 68 crore of corporate debt

• State-run banks sold Rs 2,360 crore of sovereign bonds on Sept. 2: CCIL data. Foreign banks sold Rs 1,060 crore of bonds.

Asian stocks were steady on Friday and the dollar held a drop after cyclicals led Wall Street to a record high ahead of a U.S. jobs report that will shape views on the outlook for Federal Reserve monetary policy.

Equities gained in Japan but dipped in China and Hong Kong. U.S. futures fluctuated after energy shares helped the S&P 500 to a new peak. The U.S. 10-year treasury yield was little changed and the dollar was at a four-week low.

Chinese technology stocks retreated, with investors continuing to weigh Beijing’s regulatory crackdown. President Xi Jinping said the nation will set up a new stock exchange to provide financing for innovative smaller firms. Traders were also monitoring the latest twists at indebted developer China Evergrande Group.

The payrolls report will color expectations about when the Fed might start tapering pandemic-era stimulus and how long it can wait before hiking interest-rates. The U.S. probably added 725,000 jobs in August — a more moderate pace versus the prior two months, but stronger than early 2021.

India’s SGX Nifty 50 Index futures for September delivery rose 0.1% to 17,271.00, while MSCI Asia Pacific Index gained 0.3%. The NSE Nifty 50 gained 0.9% on Thursday to 17,234.15.

The jobs figures are another potential test of the prevailing calm in financial markets, which so far have weathered risks to economic reopening from coronavirus variants and the prospect of less expansive monetary policy. Goldman Sachs Group Inc. strategists said concerns about economic expansion are overdone, pointing to possible gains in cyclical assets in the near future.

Elsewhere, oil was near $70 a barrel on bets that the market can absorb additional supply from OPEC+ as the U.S. Gulf grapples with Hurricane Ida’s impact. Bitcoin slipped back toward $48,000 after briefly surpassing $50,000 a day earlier.

Back home, Markit India Services PMI and Composite PMI for August will be released. Jindal Steel, PNB Housing, Lodha, AIA Engineering are among companies holding their annual shareholders’ meeting. Foreign investors bought net Rs 639 crore of stocks on Wednesday, according to NSDL website.