Sensex, Nifty Close At Record Highs For Third Day Led By RIL, Tata Steel
India’s stock benchmarks closed at record for the third consecutive trading session aided by gains in Tata Steel Ltd. and index heavyweight Reliance Industries Ltd. There was relief on the macro-economy front as wholesale inflation eased for the second straight month in July.
The S&P BSE Sensex gained 0.26% to 55,582.58, a record close for the 30-stock index which hit a new high of 55,680.75 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to close at a record 16,563.05. The 50-stock index had hit a high of 16,589.40 in intraday trade.
Index heavyweight Reliance Industries provided the biggest boost to both indexes, rising as much as 2.67% in intraday trade following a Bloomberg report that said that Saudi Aramco is in advanced talks for an all-stock deal to acquire a stake in the Indian company’s oil refining and chemicals business. Tata Steel gained the most, advancing nearly 4%.
The broader indices underperformed larger peers with S&P BSE MidCap shedding 0.18% and S&P BSE SmallCap slipping 0.6%. Thirteen out of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Telecom falling 1%. On the flip side, S&P BSE Metal gained nearly 2%.
The market breadth was skewed in favour of bears. About 1,168 stocks advanced, 2,124 declined and 139 remained unchanged.
"Despite weak global market conditions, Indian markets maintained the bullish momentum amid sharp intraday volatility. On daily charts, benchmark index Nifty has formed a breakout continuation formation. The texture of the chart suggests the 16,450-16,400 level would act as a key support level for the day traders. As long as the index is trading above the same, the uptrend texture is likely to continue up to 16,600-16,640 levels. In the near future, the market may consolidate near 16,600 resistance level", Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. wrote in a note.
Cadila Slips After Report Regulator Wants More Trials Of Vaccine
Cadila Healthcare Ltd. shed the most in more than five months after a media report said India’s drug regulator wanted more trials of a two-dose regime of its Covid-19 vaccine called ZyCov-D.
Shares fell as much as 6.17% to Rs 524 apiece, trading volume 46% greater than 3-month, full-day average.
A panel of India's drug regulator met Saturday to consider Cadila's application for emergency use of double-dose and triple-dose regimes of its vaccine and concluded stage III trials were needed, according to a media report.
HDFC To Raise Deposits To Finance Green & Sustainable Housing
Housing Development Finance Corporation Ltd. has launched “Green & Sustainable Deposits” to safeguard the environment from climate change. These fixed deposits will be directed towards financing of Green and sustainable housing credit solutions and services, according to a statement from the company.
Eligibility: Individuals (Residents & NRIs)
Period of Deposits: 36-120 months.
Interest Rates: Up to 6.55% per annum. Senior citizens will be eligible for an additional 0.25% per annum on deposits up to Rs 2 crore.
Triveni Turbine Gains Over 12% Post June Quarter Numbers
Shares of Triveni Turbine Ltd advanced 12.94%, the steepest rise in intraday trade in nearly six months, to Rs 133.50 apiece, after the company reported sequential growth in net income and revenue in the June quarter, post market hours Friday.
First Quarter Results (Consolidated)
Net income at Rs 27.75 crore vs Rs 23.28 crore QoQ
Revenue at Rs 184.06 crore vs Rs 178.53 crore QoQ
Total costs at Rs 153.49 crore vs Rs 159.15 crore QoQ
Other income at Rs 5.55 crore vs Rs 4.24 crore QoQ
All the six analysts tracking the company maintained ‘buy’ recommendations with the consensus price implying an upside of 11.9%
Gold Slips As UBS Tells Investors To Get Out Before Losses Worsen
Gold dropped as the U.S. dollar edged higher, with UBS Group AG warning investors to rethink their bullion holdings as the global economy recovers and the greenback strengths into next year.
"The message must be: if you have a tactical position, get out; if you have a strategic position, hedge it", said Dominic Schnider, head of commodities and Asia Pacific foreign exchange at UBS Global Wealth Management CIO Office.