Sensex, Nifty Close At Record Aided By Telecom, Auto & I.T. Stocks
India's stock benchmarks closed at record highs aided by gains in telecom, auto, power and I.T. stocks. Cabinet approval for Production Linked Incentives (PLI) for Auto sector and relief measures for Telecom sector aided the rise.
The S&P BSE Sensex rose 0.82% to 58,723.20, a record close for the 30-stock index which hit a record 58,777.06 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to 17,519.45, a record close. The 50-stock index hit a record 17,532.70 in intraday trade. This is the first ever time Nifty crossed 17,500. Infosys Ltd. contributed the most to the index gain, increasing 1.5%. NTPC Ltd. had the largest increase, rising 7.2%. Today, 35 of 50 shares rose, while 15 fell.
The broader indices almost mirrored larger peers with the S&P BSE MidCap adding over 0.6% and S&P BSE SmallCap rising over 0.8%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Telecom index gaining 3.5% and S&P BSE Utilities index adding 2.3%.
The market breadth was skewed in favour of bulls. About 2,060 stocks advanced, 1,243 declined and 118 remained unchanged.
"We expect Nifty 50 to conquer 18,000 and above in the medium term. Last matured support for the index is seen at 17,080 above which we remain positive. Options concentration is seen at 17,000 put and 17,500 call – this is indicative of some resistance at 17,500-17,600 levels", Sahaj Agrawal wrote in a note. The Head of Research- Derivatives at Kotak Securities added "value is seen in Auto and Mid-cap Banking stocks; expect outperformance in the midcap space to continue".
Rupee Bonds Advance On Higher Treasuries
Indian bonds advance by the most in almost two months, tracking overnight gains in U.S. Treasuries. The rupee extended gains after the government allowed telecom firms to receive 100% foreign direct investment without any government clearances.
10-year yields fall 4bps, the most since July 26, to 6.16%; 5-year yield also drops 4bps to 5.6%
USD/INR drops 0.3% to 73.4912
S&P BSE Auto Index Closes With Nearly 1% Gain Following Govt's PLI Support For Sector
Cabinet Approves Relief Measures For Telecom Industry
Union Cabinet has approved relief measures for the telecom industry, says Telecom Minister Ashwini Vaishnaw.
Definition of adjusted gross revenue for telecom companies will be rationalised.
Non-telecom revenue will not be included in AGR.
India to allow 100% telecom FDI In Automatic Route.
India to allow unrestricted telecom spectrum sharing.
India spectrum duration to be 30 years from next auction.
India to create telecom airwave auction calendar.
Spectrum can be surrendered after 10 years in case of technology change.
India to simplify rules for setting up telecom towers.
India aiming for local core technology for 4G and 5G radio.
India allows telecom firms 4 years to clear dues to government.
Cabinet clears moratorium for telecom companies to repay dues.
Telecom companies to get 4-year moratorium to repay dues to the government.
Those who avail of the option will pay interest on the moratorium amount.
Stress in the telecom industry will now be resolved with this decision.
Move to lead to improved cashflows for telecom companies which then can be deployed for upgradation from 4G networks to 5G.
All dues, including AGR and spectrum-related dues, will be covered under the moratorium.
Interest will start accruing from Oct. 1 and the payment will be at the end of the year.
Government wants to promote healthy competition in the telecom sector.
There will be further reforms when the 5G spectrum auctions are held.
More choices for the customer is a stated commitment of the government.
The framework in the Supreme Court judgment on AGR dues has been maintained in rationalising the definition.
The judgment had said no past assessments should be done.
Any AGR definition changes will be prospective and be applicable from an appointed date.
Source: Cabinet Briefing
Watch Live: Cabinet Briefing By Union Ministers Ashwini Vaishnaw & Anurag Thakur
India Clears PLI Scheme For Automobile Sector, Drone Industry
Union Ministers Ashwini Vaishnaw & Anurag Thakur address the media on cabinet decisions taken today.
Incentives worth Rs 26,058 crore will be provided across the three sectors.
Outlay for the auto sector incentives will be Rs 25,938 crore.
Incentives worth Rs 120 crore will be given for the drone sector.
PLI-scheme will help enhance India's auto manufacturing capabilities and give a boost to electric vehicle production
The scheme is expected to draw fresh investments of Rs 42,500 crore in five years.
Incentives will drive incremental production worth over Rs 2.3 lakh crore.
Most companies in the auto industry will qualify for incentives under the scheme, says Union Minister Anurag Thakur.
Auto OEMs with over Rs 10,000 crore global revenue will qualify for the incentives.
Auto component makers with minimum Rs 500 crore revenue will be eligible to apply
Minimum investment threshold has been set at Rs 3,000 crore for automakers and Rs 150 crore for auto component makers.
Source: Cabinet Briefing
Rama Steel Tubes Shares Jump On Multiple Order Wins Worth Rs 42.9 Crore
Shares of Rama Steel Tubes Ltd. rose 3.21% to Rs 251 apiece after the company received orders from UPPCL (Lucknow), Jal Shakti Vibhag (Himachal Pradesh), NPCL (Noida) and BSES (New Delhi) aggregating to Rs 42.9 crore.
The orders are primarily for supply of electrical poles and G.I. pipes, the company said in an exchange filing, and added that the new orders will strengthen the company’s orderbook and credibility in the market.