Sensex, Nifty Close At Record Aided By Gains In I.T., FMCG Stocks
India's stock benchmarks closed at record, aided by gains in I.T., FMCG, consumer durables and real estate stocks. Focus now shifts to key U.S. payroll report due later today to assess the strength of the economic recovery and a possible timeline for U.S. Federal Reserve for paring stimulus.
The S&P BSE Sensex gained 0.90% to a 57,852.54, highest ever close. The 30-stock index rose to a record 57,892.37 in intraday trade. The NSE Nifty 50 advanced by similar magnitude to 17,234.15. This is the first ever close for Nifty 50 above 17,200. The 50-stock index hit a record 17,245.50 in intraday trade. Tata Consultancy Services Ltd. contributed the most to the index gain, increasing 3.3%. Shree Cement Ltd. had the largest increase, rising 6.5%. Today, 37 of 50 shares rose, while 13 fell.
The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining over 0.8%. Barring S&P BSE Auto and S&P BSE Oil & Gas, all the other 15 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE FMCG, S&P BSE Information Technology, S&P BSE Consumer Durables adding over 1.5%.
The market breadth was skewed in favour of bulls. About 1,980 stocks advanced, 1,214 declined and 146 remained unchanged.
"Markets were back in action after yesterday's small correction and benchmark Nifty found support near 17,050 level. After a muted opening the index successfully cleared the intraday resistance of 17,150 and is comfortably trading above the same which is largely positive. The intraday rally indicates further uptrend from the current levels but the market has formed a double top kind of formation. For the trend following traders, 17,150 would be the key support level, and above the same the uptrend structure could continue up to 17,300-17,350 levels. On the flip side, if the Nifty slips below 17,150, it may trigger a quick intraday correction till 17,100-1,7075 levels",Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. wrote in a note
S&P BSE Auto Index: Lone Sectoral Loser
Container Corporation Rises The Most In A Month
Shares of Container Corporation of India Ltd. added 7.20%, the most in a month, to Rs 738.10 apiece.
Trading volume was 4.26 million shares, triple the 20-day average of 1.59 million shares for this time of the day.
Container Corp trades at 41 times its estimated earnings per share for the coming year.
Analysts have 23 'buy', nine 'hold' and four 'sell' recommendations on the stock.
S&P BSE Information Technology Index: Top Sectoral Gainer
Adani Green Energy Raises $750 Million Through 3-Year Notes
Adani Green Energy Ltd. raised $750 million to fully fund its equity needs for its under construction pipeline as it continued to ramp up focus on ESG. It has priced its maiden ListCo senior green bond issuance of $750 million through 3-year notes, at a fixed coupon of 4.375%. The issuance was oversubscribed 4.7 times.
According to the company’s exchange release, the funds will be used for equity portion of capex for under construction projects. Under the structure, Adani Green Energy can draw up to $1,700 million over the course of time subject to the covenants of the structure. The notes were rated Ba3 (stable) by Moodys. The entire pipeline is now funded, thereby setting the stage for the company to become the world’s largest renewable energy platform by 2030.
Vineet Jain, MD & CEO of Adani Green Energy said that the oversubscription is testimony of the confidence of overseas investors on the company.