Sensex, Nifty Snap Seven Day Winning Streak In A Volatile Session

Indian equity benchmarks snapped a seven-day winning streak weighed down by selloff in the final hour of trade.

The S&P BSE Sensex index shed nearly 0.1% to 61.716.05. This after the 30-stock index hit a record 62,245.43 in intraday trade. The NSE Nifty 50 Index declined 0.32% to close at 18,418.75. The 50-stock gauge hit a record 18,604.45 in intraday trade.

The broader indexes underperformed their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap declining nearly 2%. Barring S&P BSE Energy, S&P BSE Information Technology, S&P BSE Capital Goods and S&P Teck indexes, all the other 15 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty index falling over 4.5%.

The market breadth was skewed in favour of bears. About 983 stocks advanced, 2,382 declined and 124 remained unchanged.

• Ride-hailing app Ola's CFO Swayam Saurabh and COO Gaurav Porwal have left the company last week, reports Moneycontrol, citing unidentified people familiar with the matter.

• Ola and Porwal denied plans to exit last week and an Ola spokesperson was yet to respond to Moneycontrol's queries on Saurabh.

Shares of Inox Wind Ltd. fell 8% in intraday trade to Rs 118 apiece after the company entered into a share purchase agreement with its subsidiary Inox Wind Infrastructure Services Ltd. to acquire the entire issued and paid up equity share capital of Resco Global Wind Services Ltd.

After the acquisition, Resco Global shall become a direct wholly owned subsidiary of Inox Wind.

In an exchange filing, Inox Wind said that the acquisition is being done as part of the company strategic business plan and will be completed before October 30, 2021.

Shares of Network 18 Media & Investment Ltd. rose over 5% in intraday trade to Rs 88 apiece after the company reported sequential growth in net income and revenue in the quarter-ended September.

HeidelbergCement India Ltd. reported net income for the second quarter that beat the average analyst estimate.

September quarter results:

• Net income at Rs 59.56 crore vs estimate of Rs 56.7 crore (Bloomberg consensus); down 13% QoQ

• Revenue at Rs 576.47 crore vs estimate of Rs 536 crore; up 3.7% QoQ

• Total costs at Rs 499.42 crore vs Rs 452.6 crore QoQ

• Other income at Rs 13.86 crore vs Rs 10.51 crore

Commentary & Context

• Total operating cost per ton increased by 6.7% YoY due to rise in fuel, packaging and diesel costs.

• Company signed a long-term PPA to source 22 Gigawatt hours per annual of solar power for its Jhansi plant.

Analysts have 14 'buy', five 'hold' and three 'sell' recommendations on the stock.

India's stock benchmarks advanced to record and overcame intraday volatility, aided by gains in information technology and capital goods stocks

The S&P BSE Sensex rose 0.60% to 62,134.16. The 30-stock index hit a record 62,232.35 in intraday trade. This is the first time Sensex crossed 62,000. The NSE Nifty 50 index also advanced by similar magnitude to 18,563.65. The 50-stock gauge hit a record 18,604.45 in intraday trade.

The broader indices underperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap indexes gaining 0.2%. Ten of the 19 sectoral indexes compiled by the BSE Ltd. advanced, with S&P BSE Information Technology index gaining 2.36%.

The market breadth was skewed in favour of bears. About 1,337 stocks advanced, 1,913 declined and 137 remained unchanged.

• Shares of Swan Energy Ltd. rose 2.58% in intraday trade to Rs 136 apiece after the company executed a Share Purchase Agreement with Veritas (India) Ltd. to acquire 7,40,000 equity share of Veritas Polychem Pvt Ltd. at Rs 10 each.

• Veritas Polychem will become a subsidiary of Swan Energy post the SPA.

Shares of MPS Ltd. rose over 9.4% to Rs 746.6 apiece after the company said it would consider the proposal for buyback of equity shares of the company on October 27. The company will also announce its earnings for the quarter ended September on the same day.

Trading volume was 17.6 times the 30-day average volume for this time of the day. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum

Shares of Nippon Life India Asset Management Ltd. rose over 5% in intraday trade, the most in three months, to Rs 474.4 apiece

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

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

• Analysts have 10 'buy', seven 'hold' and one 'sell' recommendations on the stock.

• Nippon Life India AM trades at 44 times its estimated earnings per share for the coming year.

• Gross NPAs for banks were at 7.5% as of March 2021

• With restructured assets expected to be around 2% of total loans, stressed loans for banks could rise to 10-11%

• Majority of the stress is expected to come from retail and MSME loans

• Retail stressed assets could rise to 4-5% of loans by the end of this year, compared with 3% in March 2021

• Stressed assets for MSME segment expected to rise to 17-18% from 14% last fiscal

• Corporate stressed assets expected to remain within 9-10%

Source: CRISIL Statement

• Deterioration of asset quality since the onset of the pandemic has been more moderate than expected despite limited regulatory support for borrowers.

• Expect asset quality to further improve, leading to decline in credit costs.

• India's economy will likely continue to recover in the next 12-18 months with GDP growing 9.3% in the fiscal year ending March 2022 and 7.9% in the following year, according to Moody's.

• Capital will likely remain higher than pre-Covid levels, but further increases will probably be limited as banks use most of retained earnings to support loan growth.

-Moody's Investor Service

Shares of Alok Industries Ltd. shed nearly 11% in intraday trade to Rs 23.8 apiece after the company reported earnings for the September quarter, post market hours Monday.

Alok Industries Q2FY22 (Consolidated, QoQ)

• Net loss at Rs 84.11 crore vs loss of Rs 97.65 crore

• Revenue from operations up 50.62% to Rs 1,910.50 crore

• Total expenses up 45.85% to Rs 1,994.36 crore to Rs 1,367.43 crore

• Other income at Rs 5.93 crore vs Rs 5.55 crore

Trading volume was 4.2 times the 30-day average volume for this time of the day.

Shares of Ramco Cements Ltd. shed nearly 3.5% in intraday trade, the most since September 20, to Rs 986.4 apiece.

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

• Ramco Cements trades at 27 times its estimated earnings per share for the coming year.

• Analysts have 19 'buy', eight 'hold' and six 'sell' recommendations on the stock.

• Ramco Cements will report its earnings for the quarter-ended September on October 25

• Fund raise values the company at $4.01 billion.

• Round co-led by existing investors Tiger Global and Falconedge.

• Two new investors - Marshall Wace and Steadfast - also invested as part of this round.

Source: CRED

Shares of Indian Energy Exchange Ltd. rose 20% in intraday trade to a record Rs 956 apiece, after the company announced that its board will consider issuing free shares to investors.

According to an exchange filing post market hours Monday, the company said the proposal for declaration of bonus issue will be considered on October 21. The earnings for the September quarter is also scheduled to be announced on the same day.

Of the 15 analysts tracking the company, nine maintained 'buy', four maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 46.9%.

The relative strength index on the stock was 90, suggesting it may be overbought. Trading volume on the stock was 4.9 times the 30-day average volume for this time of the day.

Shares of PNB Housing Finance Ltd. hit 5% lower circuit for the second consecutive session to Rs 576.45 apiece.

The company's board decided not to proceed with a preferential issue of shares to investors led by Carlyle after the plan was delayed due to pending legal proceedings, according to exchange filing on Thursday.

Over the last three sessions, shares of PNB Housing Finance shed over 11.2%. The relative strength index on the stock was 28, suggesting it may be oversold. Trading volume was 3 times the 30-day average volume for this time of the day.

Of the 16 analysts tracking the company, six maintained 'buy', five maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.8%.

Shares of TTK Prestige Ltd. rose 20% to a record Rs 10,587.15 apiece, after the company said it will consider the sub-division/split of equity shares of face value of Rs 10 each on October 27, 2021.

The relative strength index on the stock was 80, suggesting it may be overbought. Trading volume on the stock was 136.9 times the 30-day average volume for this time of the day.

Of the 11 analysts tracking the company, eight maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.8%.

India's stock benchmarks opened higher and hit record highs, aided by gains in information technology, power and capital goods stocks, as investors await key earnings. Sentiment remained positive globally after U.S. markets rebounded as a whipsaw in energy prices eased concerns.

The S&P BSE Sensex rose 0.37% to 61,992.20. The NSE Nifty 50 advanced by a similar magnitude to 18,549.55. Both the indices hit record highs in morning trade.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap rising nearly 0.8%. Barring S&P BSE FMCG index, S&P BSE Consumer Durables index and S&P Oil & Gas index, all the other 16 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Capital Goods index gaining over 1.6%.

The market breadth was skewed in favour of bulls. About 1,729 stocks advanced, 717 declined and 103 remained unchanged.

• Dr. Reddy's Laboratories Ltd. and its subsidiaries received the final approval from U.S. FDA for its Abbreviated New Drug Application for Lenalidomide capsules, in 2.5 mg and 20 mg strengths. The company also received tentative approval for 5 mg, 10 mg, 15 mg and 25 mg strengths of the capsules. Lenalidomide capsules is a therapeutic equivalent of Revlimid.

• The nod comes after Dr. Reddy's settled its litigation with Celgene, the maker of Revlimid in September 2020. Celgene agreed to provide Dr. Reddy's with a license to sell volume-limited amounts of lenalidomide capsules in the U.S. after March 2022.

• Dr Reddy's is also licensed to sell generic lenalidomide capsules in the U.S. without volume limitation starting from January 31, 2026.

Source: Exchange Filing.

Lenalidomide capsules are used to treat bone marrow cancer and anemia in patients with myelodysplastic syndrome.

• L&T Infotech raised to 'buy' at Dalal & Broacha; Price target Rs 7,566

• Reliance Industries cut to 'neutral' at Nomura; Price target Rs 2,850

• Maruti Suzuki reinstated 'underweight' at JPMorgan, Price target: Rs 6,600

• Hatsun Agro Product cut to'hold' at ICICI Securities, Price target: Rs 1,450

Piaggio India, Mahindra Electric Mobility and Kinetic Green Energy & Power Solutions are among the 21 companies that took part in India's Rs 3,000 crore ($399 million) tender for supplying 1,00,000 electric 3-wheelers, Mint reported, citing two people aware of the development.

• Convergence Energy Services Ltd., a subsidiary of Energy Efficiency Services Ltd., received bids for seven times the proposed purchase plan.

• CESL is conducting the technical evaluation of the bids and the price bids are expected to be opened this week.

• CESL declined to comment on the development: Mint

PB Fintech Ltd., the parent company of online insurance aggregator Policybazaar, has received the approval from SEBI for its IPO plays, Economic Times reported, citing three people with direct knowledge of the development.

PB Fintech is looking at a valuation of nearly $7 billion for the list: ET Report.

There has been no official communication from the regulator: Company spokesperson to ET