Sensex, Nifty Close Flat As Selloff In I.T. Stocks Offset Banking Stocks' Gains
India's stock benchmarks closed little changed after fluctuating between gains and losses in a volatile session, as gains in banking, consumer durables and power stocks were offset by losses in I.T., telecom and auto stocks.
The S&P BSE Sensex closed little changed at 58,250.26. The NSE Nifty 50 also closed flat at 17,353.50. Infosys Ltd. contributed the most to the index decline, decreasing 0.8%. Nestle India Ltd. had the largest drop, falling 2.6%. Today, 20 of 50 shares fell, while 30 rose.
The broader indices outperformed their larger peers with the S&P BSE MidCap rising 0.81% and S&P BSE SmallCap adding 0.55% respectively. Ten out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Power gaining 1.30%. On the flipside, S&P BSE Teck declined 0.75%
The market breadth was skewed in favour of bulls. About 1,820 stocks advanced, 1,359 declined and 164 remained unchanged.
“Domestic bourses witnessed modest contraction today mainly led by profit booking in IT and Auto stocks. Further, weak cues from global equities also weighed on investors’ sentiment. Textile stocks were in focus today as government approved PLI scheme worth Rs107bn for the sector”, wrote Binod Modi. The Head-Strategy at Reliance Securities added “market appears to be bit fatigue after sharp rebound in recent weeks. However, we continue to believe that high frequency key economic indicators for Aug’21 indicate a sustained economic recovery on YoY comparison.”
Oyo In Talks With Banks For Managing IPO: Business Standard
Travel technology firm Oyo has begun talks with JPMorgan, Citi and Kotak Mahindra Capital to manage its IPO, Business Standard reports, citing unidentified people familiar with the matter.
Oyo is expected to raise between $1.2b-$1.5b at a valuation range of $14b to $16b, Business Standard cites unidentified people close to the matter as saying.
Adani Power Maharashtra Wins Gondkhari Coal Block
Adani Power Ltd. announced that its wholly-owned subsidiary Adani Power Maharashtra Ltd. has emerged as the successful bidder for the commercial mining of Gondkhari coal block in Maharashtra, Adani Power said in an exchange filing.
Shares of Adani Power hit 5% upper circuit to Rs 97.75 apiece.
Of the 3 analysts tracking the company, 2 maintained 'buy' and 1 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 61.6%.
Goldman, JPMorgan Among 10 Banks Selected For LIC IPO
Goldman Sachs, JPMorgan, ICICI Securities, DSP Merrill Lynch and JM Financial are among the banks hired to manage India’s biggest initial share sale, according to the information released by the Disinvestment Ministry on Wednesday.
Other names include Kotak Mahindra Capital, Citigroup Global Markets India, Nomura Financial Advisory & Securities (India), Axis Capital and SBI Capital Market.
Names finalized from 16 investment banks that made pitches to the government.
Banks will start engaging with investors from this month.
Honeywell Automation Rises The Most In 10 Weeks
Shares of Honeywell Automation India Ltd. rose nearly 4%, the most in 10 weeks, to Rs 41,699 apiece, higher than any close since August 4.
Trading volume was 4,662 shares, about the same as the 20-day average.
Honeywell Automation trades at 66 times its estimated earnings per share for the coming year.
Analysts have five 'buy', one 'hold', and two 'sell' recommendations on the stock.