Sensex, Nifty Register Longest Stretch Of Losses In Two Months

India's equity benchmarks closed lower for the third consecutive session making it the longest losing streak in two months, dragged by losses in metals, information technology and auto stocks.

The S&P BSE Sensex Index shed 0.48% to 59,126.36 while the NSE Nifty 50 Index declined by similar magnitude to 17,618.15. The index dropped to the lowest closing level since Sept. 22. Infosys Ltd. contributed the most to the index decline, decreasing 1.0%. Power Grid Corp. of India had the largest drop, falling 2.6%. Today, 40 of 50 shares fell, while 10 rose.

The broader indices outperformed their larger peers with the S&P BSE MidCap gaining over 0.3% and S&P BSE SmallCap adding 0.56%. Thirteen of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Bankex index and S&P BSE Metal index shedding nearly 1%.

The market breadth was skewed in favour of bulls. About 1,844 stocks advanced, 1,425 declined and 155 remained unchanged.

"Investors booked profit on the expiry day due to lack of fresh triggers and tepid global cues. Benchmark Nifty is hovering within the range of 17,600-17,780 and on intraday charts it has formed a lower top formation which is largely negative. However, the medium term structure is still positive. The intraday trading setup suggests 17,700 could act as a strong resistance level, and below the same the correction could continue up to 17,500-17,450 levels. On the flip side, beyond 17,700 the immediate hurdle would be the 17,750 level. On the contrary, any revival could lift the index up to 17,800", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. wrote in a note.

Shares of Sterling and Wilson Solar Ltd. shed nearly 5% in intraday trade to Rs 394.05 apiece after the company’s promoters Shapoorji Pallonji and Company and Khurshed Daruvala facilitated the repayment of the balance outstanding loans of Rs 741 crore along with interest accrued till day, by Sterling and Wilson and its subsidiary Sterling and Wilson International FZE to the company. With this the entire outstanding loans of Rs 2,563 crore along with interest accrued till date has been repaid.

Trading volume on the stock was 1.9 times the 30-day average volume for this time of the day.

Shares of JMC Projects India Ltd. rose 20% to Rs 119.6 apiece after the company secured new order worth Rs 1,849 crore.

In an exchange filing, JMC Projects provided the breakup of the orders, as follows.

• B&F Projects in India worth Rs 857 crore

• Social Housing Project in Maldives worth Rs 992 crore.

With the above orders, the order inflows for this year have reached Rs 7,959 crore.

All the six analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.6%.

Trading volume on the stock was 14 times the 30-day average volume for this time of the day. Shares of JMC Projects crossed above 50-day simple moving average, indicating potential upward price momentum.

Shares of Dilip Buildcon Ltd. rose nearly 4% in intraday trade to Rs 559.9 apiece after the company informed the exchanges that National Highways Authority of India completed its probe on the accident at project site at Anandapuram-Pendurthi-Anakapalli NH05 in Andhra Pradesh on July 14, 2021.

The temporary restriction imposed on Dilip Buildcon from participating in NHAI bids will end on October 12.

Dilip Buildcon is required to pay a penalty of Rs 3 crore with NHAI.

Of the 12 analysts tracking the company, nine maintained ‘buy’, two maintained ‘hold’ and one maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.1%.

Trading volume on the stock was 1.9 times the 30-day average volume for this time of the day.

• Amish Mehta to take over as MD & CEO of CRISIL Ltd.

• Appointment effective October 1, 2021.

• Mehta joined CRISIL in October 2014 as president and CFO.

• Outgoing CEO Ashu Suyash had resigned in July to pursue an entrepreneurial venture.

Source: Press Release

• Bharti Airtel Ltd. has announced plans to invest Rs 5,000 crore to build seven new data centers.

• Bharti Airtel intends to triple Nxtra data centre capacity to 400 MW by 2025.

• Bharti will fund the data center capex via internal accruals and money it received from Carlyle by selling a stake in the business; will tap debt market if needed.

Source: Exchange Filing by Bharti Airtel

Citigroup Inc. has brought forward its call of a 15bps hike in India’s reverse repo rate to October from December earlier, it said in a note to clients.

• Increasing size and cut-off rates of recent variable reverse repo auctions might have indicated RBI’s willingness to normalize the liquidity management “operations” earlier than expected, economists Samiran Chakraborty and Baqar Zaidi write in the note

• Oct. MPC meet was expected to be a modest nudge toward normalization, but RBI’s liquidity management over the last fortnight has opened up other possibilities

• RBI has not only done higher than expected variable rate reverse repo auctions, but it has also set the cut-off rate in the latest 7-day VRRR auction at 3.99%, substantially higher than the 3.4-3.5% range set earlier.

• With RBI allowing the sharp increase in the 7-day VRRR, the probability of upward adjustment in the reverse repo rate to normalize the corridor has increased materially

• Modest chance that the VRRR program could be expanded to include tenors beyond 14 days. RBI could also signal a slightly altered monetary policy stance by substantially lowering the 3Q GSAP purchase target to INR 500b (could be even lower) and retain the operational flexibility of doing OMOs if necessary

• MPC will also make a distinction between these “operational” changes and the core thrust of monetary policy. Highlighting soft and uneven recovery and the emerging global growth risks, the MPC could reiterate their bias of supporting growth through an extended period of accommodative monetary policy

Tata Steel Ltd. has announced that its indirect wholly owned subsidiary T S Global Holdings Pte. Ltd. has executed definitive agreements with Toptip Holding Pte Ltd. to divest its entire stake in NatSteel Holdings for an equity value of Rs 1,275 crore ($172 million). The sale process has been completed today, Tata Steel said in an exchange filing..

• NatSteel’s wires business in Thailand has been retained by Tata Steel as part of the downstream wires portfolio.

• Tata Steel, which has already received the sale consideration, will use it for reduction of offshore debt.

India's stock benchmarks remained little changed, as gains in realty, consumer durables and pharma stocks were offset by the losses in energy and auto stocks ahead of the monthly F&O expiry.

The S&P BSE Sensex rose 0.1% to 59,469.27. The NSE Nifty 50 also traded largely unchanged at 17,700.15. Housing Development Finance Corp. contributed the most to the index gain, increasing nearly 1%. Bajaj Finance Ltd. had the largest increase, rising 1.2%. In midday trading, 19 of 50 shares rose, while 31 fell.

The broader indices almost outperformed their larger peers with the S&P BSE MidCap gaining over 0.4% and S&P BSE SmallCap adding 0.7%. Ten of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Auto index shedding 0.5%. On the flipside, S&P BSE Realty and S&P BSE Cosnumer Durables indexes rose over 1%

The market breadth was skewed in favour of bulls. About 1,896 stocks advanced, 1,212 declined and 171 remained unchanged.

Tata Consultancy Services Ltd. has been selected by The Multi Commodity Exchange India Ltd. (MCX), as the technology solution provider. TCS will help MCX build a new technology core and transform the trading and post-trade functions.

In an exchange filing, TCS said it will design and deploy cutting-edge solution to integrate multiple systems to transform MCX’s operations end-to-end. To enable high throughput trading, TCS will use the Deutsche Borse T7 trading platform.

Post-trade activities like clearing, risk management, delivery and settlement will also be transformed by TCS.

Mahindra & Mahindra Ltd. has announced that the Mahindra XUV700 Booking will start from October 7. The complete variant line-up announced by the company showed MX series is priced at Rs 11.99 lakh and AX series is priced at Rs 12.99 lakh. All the prices will be applicable for the first 25,000 bookings.

Shares of AurionPro Solutions Ltd. rose 2.72% to Rs 205.8 apiece after the company announced a strategic order win from Haryana State Transport Department for the implementation of NCMC Open Loop Automatic Fare Collection System.

In an exchange filing, AurionPro said that it will deliver the project in consortium with AU Small Finance bank as FI partner. AurionPro will be responsible for automated fare collection system and online reservation system. The total order value will be more than Rs 40 crore, spread over five years. Haryana State Transport has fleet of 3,488 luxury buses and manages footfall of over 40 crore passengers every year.

Shares of Tera Software Ltd. rose 5% to Rs 52.5 apiece after the company secured work orders worth Rs 396.47 crore from Dakshinanchal Vidyut Vitran Nigam Ltd. and Pashchimanchal Vidyut Vitran Nigam Ltd.

In an exchange filing, Tera Software said that the orders pertained to door-to-door meter, on the spot bill generation, bill distribution and collection in Agra, Aligarh, Meerut, Saharanpur and Noida distribution zones covering 56.1 lakh consumers in Uttar Pradesh.

Trading volume on the stock was 2.2 times the 30-day average volume for this time of the day.

Solar Industries leads gains in companies that manufacture defence-related products after the Indian government approved proposals for purchases of missile systems, ammunition and helicopters.

• Solar Industries, which makes bombs and warheads, gained as much as 7.54%, the most since Sept. 14

• India’s defence-acquisition panel approved the purchase of 25 “advanced light” helicopters for about Rs 3,850 crore ($447m) and spending Rs 1,700 crore for medium range surface-to-air missile system, according a statement on Wednesday

  • The proposal also includes Rs 1,300 crore for ammunition used for field guns, while about Rs 4,960 crore will be spent on “terminally guided” ammunition

India’s Supreme Court will start hearings from Oct. 17 of the rare case to re-examine its 2019 verdict that allowed Adani Power Mundra Ltd.to terminate power supply contracts and seek compensatory tariff for past dues from state power distribution companies.

• A five-judge constitution bench headed by Chief Justice N.V. Ramana will hear a curative petition filed by a Gujarat state-owned utility firm

• Court gives time to Adani Power to file its written response to Gujarat Urja Vikas Nigam Ltd.’s petition to reopen the case

Source: Bloomberg

Indian bonds trade steady ahead of the central bank’s last tranche of debt purchases in the current quarter via its government-securities-acquisition program. Traders also await a decision this week on whether the nation’s bonds win an inclusion into the FTSE Russell’s index.

• 10-year yields steady at 6.20%; 5-year yield also little changed at 5.65%

• USD/INR rose 0.2% to 74.30

• The RBI plans to buy Rs 15,000 crore of 7.26% 2029 bond, 6.1% 2031 bond, and 6.64% 2035 bond on Sept. 30 as part of its government securities acquisition program (GSAP)

  • It plans to sell an equivalent amount of 8.15% 2022 bond, 8.08% 2022 bond, and 8.13% 2022 bond

Most yields along the India sovereign yield curve rose, with 5-year bonds moving the most in Thursday morning trading.

• The 4-year yield fell 0.5bps to 5.293%

• The 10-year yield was little changed at 6.209%

• The 14-year yield was little changed at 6.717%

• The 4-year-10-year yield spread was 91.6bps, vs previous close 90.8bps

Shares of Ashoka Buildcon Ltd. rose 3.70% to Rs 101 apiece after the company acquired further stake (the balance 40%) in equity share capital of Ashoka Bettadahalli Shivamogga Road Pvt. Ltd. namely 20,000 equity shares of Rs 10 each for an agreement consideration of Rs 2 Lakh.

Post the acquisition, Ashoka Bettadahalli Shivamogga Road Pvt Ltd. will be a wholly owned subsidiary of the company, Ashoka Buildcon said in an exchange filing post market hours Wednesday.

Ashoka Bettadahalli is currently executing the four lanning of Tumkur-Shivamogga section in NH-206 under Bharatmala Pariyojana in Karnataka.

Of the 19 analysts tracking the company, 18 maintained ‘buy’ and one maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 58.5%.

Shares of Glenmark Pharmaceuticals Ltd. rose nearly 2% in intraday trade to Rs 518.65 apiece, after the company Glenmark received marketing approval for its nasal spray Ryaltris in 13 countries across the European Union and United Kingdom. In an exchange filing, Glenmark Pharma said that it will launch Ryaltris directly in the markets of Czech Republic, Slovakia, Poland and the UK.

Ryaltris is used to treat seasonal and perennial allergic rhinitis in adults and children over 12 years of age.

During FY21-22, Glenmark also received regulatory nod for Ryaltris in Philippines, Zambia, Ecuador and Peru. The nasal spray is under review with the U.S. FDA.

Of the 25 analysts tracking the company, 14 maintained ‘buy’, nine maintained ‘hold’ and two maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 27%.

Shares of Federal Bank Ltd. rose 6% in intraday trade, the most in five months, to Rs 86.25 apiece after the company informed that CARE Ratings reaffirmed ‘CARE AA; Stable’ rating in respect to the bank’s ‘Basel III-Tier II Bonds’ of Rs 500 crore.

In an exchange filing, Federal Bank detailed the rationale behind the rating affirmation. The bank’s long standing track record of operations, growth in franchise with established depositor base in South India, diversification of business into other states, comfortable capitalization levels, experienced management team, adequate profitability, operating efficiency metrics and liquidity profile were the key rating drivers.

Trading volume was five times the 20-day average for this time of the day.

Of the 38 analysts tracking the company, 35 maintained ‘buy’, two maintained ‘hold’ and one maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.2%.

Shares of Birla Corporation Ltd. rose 4.85% in intraday trade, the most in 10 weeks, to Rs 1,429 apiece. Trading volume was the 13 times the 20-day average for this time of the day.

Birla Corp trades at 19 times its estimated earnings per share for the coming year.

Analysts have 22 ‘buy’, no ‘hold’ and no ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16%.

The Chairman of MP Birla Group Harsh Vardhan Lodha said that the company planned to raise its annual cement production capacity to 30 million tonnes by 2027, during the company’s annual general meeting on Wednesday. He also stated that the details of the plans would be announced after the approval by the board of directors. The 30 million tonnes target is an enhancement of the earning 25 million tonnes target that the company had set for 2025.

Birla Corp’s current production capacity is 15.6 million tonnes and is expected to reach 20 million tonnes by the end of the current fiscal year.

Shares of GMR Infrastructure Ltd. rose nearly 3.7% in intraday trade to Rs 39.4 apiece after the company's shareholders and secured creditors approved the amalgamation and arrangement among GMR Power Infra, GMR Infra and GMR Power and Urban Infra and their respective shareholders during the NCLT convened meetings.

The relative strength index on the stock was 79, suggesting that it may be overbought. Trading volume was 2.9 times the 30-day average volume for this time of the day.

Of the six analysts tracking the company, two maintained 'buy' and four maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 10.4%

Shares of Zee Entertainment Enterprises Ltd. shed over 2.5% to Rs 302.1 apiece ahead of NCLT hearing on Invesco's plea against the company seeking an EGM to remove non-independent directors and add six new additional independent directors.

Invesco, along with OFI Global China Fund LLC, holds about 18% stake in Zee. NCLT will hear Invesco's petition later today.

Of the 23 analysts tracking the company, 18 maintained 'buy', four maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.4%. The relative strength index on the stock was 71, suggesting it may be overbought.

Shares of Persistent Systems Ltd. rose over 6% in intraday trade to Rs 3,763.05 apiece after the company's wholly owned subsidiary, Persistent Systems Inc., USA announced plans to acquire Software Corporation International and its affiliate Fusion360 LLC for $53 million.

In an exchange filing post market hours Wednesday, Persistent Systems said that its subsidiary will also acquire Shree Infosoft, India along with certain assets of Shree Partners LLC, USA, for $6.87 million. The acquisitions are expected to be completed within 2-5 weeks.

Of the 32 analysts tracking the company, 16 maintained 'buy', nine maintained 'hold' and seven maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 14.2%

• Shares of Central Bank of India rose 18.63% to Rs 25.15 apiece.

• Trading volume was 12 times the average for this time of the day.

• Over the past month, UCO Bank and Indian Overseas Bank came out of the PCA regime, making Central Bank of India, the only lender under the framework.

India's stock benchmarks opened little changed, as gains in metal, realty and telecom stocks were offset by losses in auto stocks, amid mixed global cues.

The S&P BSE Sensex shed 0.07% to 59,369.61. The NSE Nifty 50 also declined by similar magnitude to 17,693.05. Reliance Industries Ltd. contributed the most to the index decline, decreasing 0.8%. Oil & Natural Gas Corp. had the largest drop, falling 1.3%. In early trading, 31 of 50 shares fell, while 19 rose.

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap adding over 0.3% . Fourteen of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Realty adding nearly 1%

The market breadth was skewed in favour of bulls. About 1,643 stocks advanced, 529 declined and 91 remained unchanged.

• A unit of Adani Green Energy Ltd. has agreed with Essel Green Energy Pvt. to acquire 40 MW operating solar project in Odisha for Rs 219 crore($29.5 million) enterprise value, according to a statement to stock exchanges.

• The project has a long-term power purchase agreement with Solar Energy Corp. for 4.235 rupees per unit, with remaining PPA life of about 22 years.

• Adani Green’s renewable capacity will become 19.8 GW after the deal.

Glenmark Pharmaceuticals Ltd. received marketing approval for its nasal spray Ryaltris in 13 countries across the European Union and United Kingdom. In an exchange filing, Glenmark Pharma said that it will launch Ryaltris directly in the markets of Czech Republic, Slovakia, Poland and the UK.

Ryaltris is used to treat seasonal and perennial allergic rhinitis in adults and children over 12 years of age.

During FY21-22, Glenmark also received regulatory nod for Ryaltris in Philippines, Zambia, Ecuador and Peru. The nasal spray is under review with the U.S. FDA

Indian bonds traders will look forward to the last tranche of bond purchases in the current quarter by RBI under its government-securities-acquisition program. Traders will also await a decision this week on whether the nation’s bonds make it to FTSE Russell’s bond index.

• The RBI plans to buy Rs 15,000 crore of 7.26% 2029 bond, 6.1% 2031 bond, and 6.64% 2035 bond on Sept. 30 as part of its government securities acquisition program (GSAP)

  • It plans to sell an equivalent amount of 8.15% 2022 bond, 8.08% 2022 bond, and 8.13% 2022 bond

• USD/INR rose 0.1% to 74.1500 on Wednesday

• 10-year yields fell 2bps to 6.21% on Wednesday

• Global funds bought Rs 200 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 201 crore of corporate debt

• State-run banks bought Rs 612 crore of sovereign bonds on Sept. 29: CCIL data. Foreign banks bought Rs 308 crore of bonds