Sensex, Nifty Close Higher Aided By Gains In Auto, I.T., Banking Stocks
India's stock benchmarks closed higher aided by gains in auto, I.T., banking and consumer discretionary stocks.
The S&P BSE Sensex rose 0.12% to 58,247.09. The 30-stock index hit a intraday high of 58,482.62, slightly below the record high of 58,553.07 reached on September 7. The NSE Nifty 50 advanced by a similar magnitude to 17,380. The 50-stock index hit a record 17,438.55 in intraday trade. Tata Consultancy Services Ltd. contributed the most to the index gain, increasing 1.1%. IndusInd Bank Ltd. had the largest increase, rising 4.0%. Today, 31 of 50 shares rose, while 19 fell.
The broader indices outperformed their larger peers with the S&P BSE MidCap adding over 1% and S&P BSE SmallCap rising 0.6%. Fourteen out of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Teck, S&P BSE Auto, S&P BSE Utilities & S&P BSE Consumer Discretionary indexes gaining over 1%.
The market breadth was skewed in favour of bulls. About 1,945 stocks advanced, 1,301 declined and 150 remained unchanged.
"Nifty Media index gained ~12% mainly led by sharp rally in Zee Entertainment following growing expectations of improvement in corporate governance standard after large investors sought the ouster of select directors of the company", wrote Binod Modi in a note. The Head Strategy at Reliance Securities added "ease of retail inflation at 5.3% for August offers comfort as this should essentially aid RBI to maintain its soft monetary policy stance to support ongoing recovery in economic momentum. Unlike developed markets, faster ramp-up in vaccination process and relatively lower daily caseload offer India an edge over other markets and therefore domestic bourses are resilient despite pressure in global equities."
HAL, Rolls Royce Sign Deal For Adour Engine Parts To Support International Customers
Hindustan Aeronautics Ltd. and Rolls Royce signed an agreement for Make in India Adour engine parts to support Roll Royce’s international customer base.
The partnership is expected to strengthen the ecosystem of Rolls Royce for Adour engines in India by utilizing the capabilities of HAL in the manufacturing of the engines for Indian customers over several decades, HAL said in an exchange filing.
Earlier during Aero India 2021, HAL and Rolls Royce signed an MoU to establish an Authorised Maintenancce Centre for Adour engines at HAL.
Shares of HAL rose 2.60% to Rs 1,441.75 apiece. The relative strength index on the stock was above 70, suggesting that it may be overbought.
All the five analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.2%
Escorts Climbs The Most In 11 Months; RSI Above 70
Shares of Escorts Ltd. added over 7%, the most in 11 months, to Rs 1,478 apiece.
In an exchange filing Tuesday, Escorts said it reinforced its relationship with IndusInd Bank with a formal Memorandum of Understanding to provide one of the best financial offerings to the customers.
The two companies will work together to provide financial programs to enable customers to invest in modern farm machinery to enhance the productivity and farm income.
Trading in the company's call options was triple the average. Trading volume was double the average for this time of the day.
The relative strength index on the stock was above 70, indicating it may be overbought.
Analysts have 16 'buy', five 'hold' and four 'sell' recommendations on the stock.
IndusInd Bank: Top Gainer In Nifty Bank Index
BLS International Empanelled To Process Ayushman Bharat Cards; Shares Advance
Shares of BLS International Services Ltd. added nearly 6.4% to Rs 260 apiece after that company got empanelled to process Ayushman Bharat cards under Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) by National Health Authority, Ministry of Health & Family Welfare.
The AB-PMJAY scheme offers financial security against medical treatment costs, medicines, diagnostics and pre-hospitalisation expenses.
In an exchange filing, the company confirmed the development and said it will start processing Ayushman Bharat cards across India for people to avail healthcare services at any of the empanelled hospitals, effective immediately. The cover includes cashless and paperless access to healthcare services for the beneficiary at the point of service.
The relative strength index on the stock was 81, suggesting that it may be overbought.