Sensex, Nifty Snap Two-Day Winning Streak Dragged By Metal & I.T. Stocks

India’s equity benchmarks closed lower, dragged by losses in metal, information technology, healthcare, auto and realty stocks, as surge in energy costs spurred inflation concerns.

The S&P BSE Sensex Index shed 0.93%, the steepest single-day decline since July 19, to 59,189.73. The NSE Nifty 50 Index logged the most single-day loss decline since September 20 to 17,646. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.9%. SBI Life Insurance Co. had the largest drop, falling 4.0%. Today, 41 of 50 shares fell, while 9 rose.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap shedding 1.2% and S&P BSE SmallCap falling 0.5%. All the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Metal index falling nearly 3%.

The market breadth was skewed in favour of bears. About 1,440 stocks advanced, 1,848 declined and 158 remained unchanged.

"A number of macro indicators are close to technically critical levels – potential upside breakouts in Dollar index, Crude and Developed Market bond yields could get confirmed this week. The global backdrop is indeed a somewhat worrisome one with surging energy prices meeting slowing demand conditions, and a global supply chain crunch across basic materials", S Hariharan, Head - Sales Trading, Emkay Global Financial Services, wrote in a note, before adding "the valuation premium of mid & small caps over Nifty stocks are at levels similar to early 2018, implying that incremental money flow is likely to be directed towards large caps".

• Cabinet approves Rs 1,985 crore bonus for Railway staff.

• India approves Production-Linked Bonus for Railway employees.

• Cabinet approves Rs 4,445 crore textiles park plan.

• Zee has complained against limited time granted to it by NCLT for filing reply on Invesco’s petition

• NCLT Mumbai yesterday asked Zee to file its reply by October 7.

• NCLT proceedings should be stayed until NCLAT decides its appeal, Zee says.

Computer Age Management Services Ltd. has been permitted as a Central Record Keeping Agency (CRA) to use Aadhaar-based eKYC services as Authentication User Agency, for National Pension Scheme (NPS) by Pension Fund Regulatory & Development authority, the company said in an exchange filing.

Sun TV Network Ltd. is higher for the sixth straight day, on track for the longest winning streak since the period ended June 23, 2020.

Sun TV has gained a total of 8.8% during the streak while the S&P BSE Sensex Index fell 0.2%. Today, the stock rose 1.98% to Rs 545 apiece.

Of the 22 analysts tracking the company, 19 maintained 'buy', five maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 6.8%

Tata Steel BSL Ltd. Achieved highest ever crude steel production in Q2, up 5% YoY.

In its business update, Tata Steel BSL said that the production stood at 11,95,000 tonnes compared to 11,40,000 tonnes YoY. Sales was at 11,08,000 tonnes compared to 12,74,000 tonnes YoY.

Tata Steel said that the recently launched ‘Tata Steelium Super’ will enhance the company’s presence in retail segment, going forward.

Shares of Tata Steel Ltd. declined 2% to Rs 1,290 apiece. The company’s steel production grew 3% YoY in the quarter-ended September. Overall deliveries rose by 12% QoQ, the company said in its business update.

India crude production volume was 4.73 million tonnes vs 4.59 million tonnes YoY

India delivery volume at 4.64 million tonnes vs 5.05 million tonnes YoY

The company said it achievement deliveries volume growth across ‘automotive and special products’ segment, branded products and retail segment, industrial products and projects segment.

Of the 34 analysts tracking the company, 29 maintained ‘buy’, four maintained ‘hold’ and one maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 35.1%.

Shares of Cyient Ltd. rose nearly 3% to Rs 1,084.95 apiece after the company announced the appointment of Rajaneesh Kini as Senior Vice President & Chief Technology Officer.

In an exchange filing, Cyient said that Rajaneesh will be responsible for shaping the company’s technological vision. Rajaneesh has over two decades of experience in Engineering across various industry verticals and has expertise in VLSI, Embedded, Cloud software, data platforms, connectivity, security engineering. Rajaneesh had previously headed the Global ER&D Solutions Delivery business for Wipro Ltd.

India's stock benchmarks edged higher as they shrugged off a volatile start, aided by gains in banking and oil & gas stocks.

The S&P BSE Sensex rose 0.29% to 59,920.61. The NSE Nifty 50 advanced by a similar magnitude to 17,866.95. HDFC Bank Ltd. contributed the most to the index gain, increasing 1.6%. Tata Consumer Products Ltd. and UPL Ltd. had the largest increase, rising 3.1%. In midday trading, 20 of 50 shares rose, while 30 fell.

The S&P BSE MidCap underperformed its larger peers and remained little changed while S&P BSE SmallCap outperformed Sensex and Nifty, adding 0.75%. Twelve of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Finance, Bankex and Oil & Gas indexes adding nearly 1%.

The market breadth was skewed in favour of bulls. About 1,894 stocks advanced, 1,264 declined and 150 remained unchanged.

Shares of Deepak Nitrite Ltd. rose 7.58% in intraday trade to Rs 2,873.1 apiece. Trading volume was triple the 20-day average for this time of the day.

Shares of the company rose 20% in the last three sessions. The relative strength index on the stock was above 70, indicating it may be overbought.

Deepak Nitrite trades at 38 times its estimated earnings per share for the coming year.

Analysts have six ‘buy’, one ‘hold’ and two ‘sell’ recommendations on the stock. The consensus price of analysts tracked by Bloomberg implied a downside of 21.9%.

Shares of Renaissance Global Ltd. rose 2% to Rs 807.6 after the company said that its direct-to-consumer business posted revenue of Rs 20.4 crore in the September quarter.

In an exchange filing, Renaissance Global said that direct-to-consumer business grew 128% YoY. The company expects the margins in to direct-to-consumer business to be 20-22%.

• Grasim Industries Ltd. has 2.34 million shares change hands in a bunched trade.

• Buyer and seller details are not known immediately.

Source: Bloomberg

Indian bonds and the rupee edged lower as oil prices holding near a seven-year high and an overnight jump in U.S. Treasury yields weighed on sentiment.

• 10-year yields rose 2bps to 6.28% on Wednesday

• USD/INR rose 0.2% to 74.5750 on Wednesday; up 0.6% this week

A potential merger with the Indian unit of Sony Group Corp. is the best deal on the table but Zee Entertainment Enterprises Ltd. is open to offer from other bidders.

• This is the best deal for shareholders at this point in time as we are interested in maximization of values for all our stakeholders including shareholders, the company and the consuming public.

• Company is open to 'consider if there is another deal on the table'.

• We, as a board, have taken decisions based on applicable laws of land and what we think is good for shareholders.

• As of now, the due diligence process has already commenced and is progressing speedily. Post that, we will take it to shareholders for approval.

-R Gopalan, Chairman of Zee Entertainment Enterprises Ltd. to Bloomberg TV

• Shares of Radico Khaitan Ltd. rose nearly 5% in intraday trade, the most in eight weeks, to Rs 949.4 apiece.

• Trading volume was double the 20-day average volume for this time of the day.

• Radico Khaitan trades at 39 times its estimated earnings per share for the coming year.

• Analysts have 12 ‘buy’, one ‘hold’ and one ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.9%

Tata Consultancy Services Ltd. announced extension of its long-standing partnership with State Bank of India Ltd., for another five years.

As part of the new contract, TCS will maintain and SBI’s core banking application, trade finance, financial reports and inclusion with new features and additional functionalities, TCS said in an exchange filing.

TCS will leverage its deep understanding of SBI’s business and technology landscape and improve customer experience. TCS is currently helping build Bharat Craft- an online B2B e-commerce platform which would serve as a marketplace for MSMEs. The project is being jointly driven by SBI and Government of India.

Yields rose across the India sovereign yield curve in Wednesday morning trading.

• The 4-year yield rose 1.6bps to 5.323%

• The 10-year yield rose 1.9bps to 6.28%

• The 14-year yield rose 1.8bps to 6.786%

• The 4-year-10-year yield spread was 95.7bps, vs previous close 95.4bps

Source: Bloomberg

Shares of MTAR Technologies Ltd. rose 3% in intraday trade to Rs 1,522.2 apiece after CRISIL upgrade the credit rating of the company.

In an exchange filing, MTAR Tech said that CRISIL Ratings upgraded its ratings on bank facilities to CRISIL A-/Stable/CRISIL A2+ due to the company’s healthy business risk profile, strong order book, relationship with customers, export diversity and operating profitability.

All the three analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.6%.

• Shares of Tata Elxsi Ltd. rose nearly 7.5% in intraday trade, the most in seven weeks, to Rs 6,272 apiece.

• Trading volume was triple the 20-day average volume for this time of the day.

• The relative strength index on the stock was above 70, indicating it may be overbought.

• Tata Elxsi trades at 77 times its estimated earnings per share for the coming year. Analysts have two ‘buy’, two ‘hold’ and one ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied a downside of 33.9%.

Shares of Hindustan Copper Ltd. rose over 11% in intraday trade to Rs 133.7 apiece. Trading volume was eight times the 20-day average volume for this time of the day.

Vedanta’s Founder Anil Agarwal said that his company will look to bid for buying the government’s stake in Hindustan Copper when the firm is put for privatization. Speaking an event, Agarwal confirmed that Vedanta was interest in Hindustan Copper and are doing due diligence.

Shares of Hindustan Copper cross above the 50-day as well as 200-day simple moving average, indicating potential upward price momentum.

Shares of Bajaj Finance Ltd. rose 2% in intraday trade to Rs 7,880.6 apiece after the company said that assets under management (AUM) stood at Rs 1,66,900 crore (all figures provisional) in the September quarter compared to Rs 1,37,090 crore YoY.

In an exchange filing, Bajaj Finance also stated that its liquidity positioned remained strong with the consolidated liquidity surplus at Rs 16,500 crore as of September 30, 2021. Deposit book stood at Rs 28,700 crore compared to Rs 21,669 crore YoY, in the September quarter.

Of the 30 analysts tracking the company, 14 maintained ‘buy’, nine maintained ‘hold’ and seven maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 17.4%

Shares of Coal India Ltd. rose nearly 3% in intraday trade to Rs 203.8 apiece, before paring the gains, after the company’s board accorded an in-principle approval to pre-feasibility report to set up integrated greenfield aluminium project in Odisha.

In an exchange filing, Coal India said that approval also accounted for the setting up of associated power plant by the company’s subsidiary Mahanadi Coalfields.

Of the 28 analysts tracking the company, 21 maintained ‘buy’, four maintained ‘hold’ and three maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.2%.

• Shares of Bosch Ltd. rose 7.51% in intraday trade, the most in over four months, to Rs 16,634.75 apiece, higher than any close since February 11.

• The relative strength index on the stock was 77, suggesting it may be overbought. Trading volume was five times the 20-day average volume for this time of the day.

• Bosch India trades at 39 times its estimated earnings per share for the coming year.

• Analysts have two ‘buy’, two ‘hold’ and two ‘sell’ recommendations on the stock.

Shares of Marico Ltd. rose 3.81% in intraday trade, the most in over a month, to Rs 579.2 apiece after the company said that the consumer sentiment remained healthy in India business.

In its quarterly update, Marico said that revenue growth in the quarter was in low twenties while volume growth was close to double-digits on a 2-year CAGR basis. In an exchange filing, Marico said gross margins are expected to be marginally better than the previous quarter, but would be under pressure on a YoY basis as input costs continue to rise. Marico expected modest bottom line growth in the quarter.

Of the 41 analysts tracking the company, 28 maintained ‘buy’, nine maintained ‘hold’ and four maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.2%

Shares of Force Motors Ltd. rose over 5% in intraday trade to Rs 1,559.4 apiece after the company shares its business update for September.

The company’s total production stood at 2,159 units. Domestic sales during September was 1,968 units while exports came in at 272 units

Trading volume on the stock was 2.7 times the 30-day average volume for this time of the day.

India's stock benchmarks opened higher, aided by gains in oil and gas and power stocks, amid mixed global cues as rising U.S. treasury yields and surge in energy costs spur inflationary concerns.

The S&P BSE Sensex rose 0.24% to 59,885.58. The NSE Nifty 50 also advanced by similar magnitude to 17,871.50. Housing Development Finance Corp. contributed the most to the index gain, increasing 0.9%. Oil & Natural Gas Corp. had the largest increase, rising 4.4%. In early trading, 39 of 50 shares rose, while 11 fell.

The broader indices outperformed their larger peers with the S&P BSE MidCap adding over 0.5% and S&P BSE SmallCap gaining 0.7%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Power and S&P BSE Oil & Gas indexes gaining over 1.4%.

The market breadth was skewed in favour of bulls. About 1,842 stocks advanced, 426 declined and 66 remained unchanged.

Indian bonds and the currency may extend Tuesday’s losses as oil prices holding near a seven-year high and an overnight jump in U.S. Treasury yields weigh on sentiment. Traders will also assess Moody’s raising the nation’s outlook to stable from negative.

• 10-year yields rose 1bp to 6.26% on Tuesday

• USD/INR rose 0.2% to 74.4487 on Tuesday

• Global funds sell net Rs 1,920 crore of India stocks Tuesday: NSE

  • They sold Rs 159 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 1,590 crore of corporate debt

  • State-run banks bought Rs 676 crore of sovereign bonds on Oct. 5: CCIL data. Foreign banks sold Rs 1,480 crore of bonds.

HDFC Bank is seeking a strategic investor in its non-banking subsidiary, HDB Financial Services, Economic Times reports, citing unidentified people familiar with the matter.

• The bank has hired Morgan Stanley for the search and expects a unit valuation of as much as $9b

• Initially plans to offer a 20% to 25% stake in the unit

• The bank had ended plans to list the affiliate

• HDFC Bank spokesperson declined to comment; HDB Financial Services didn’t respond to queries: ET