Sensex, Nifty Close At Another Record After Longest Winning Streak In Six Weeks

India's equity benchmarks rose for the seventh consecutive session to close at record, aided by gains in metals, power and information technology stocks. This is the longest winning streak from NSE Nifty 50 index since August 31.

The S&P BSE Sensex index rose 0.75% to 61.765.59, a record close for the 30-stock index. The 30-stock index hit a record 61,963.07 in intraday trade. The NSE Nifty 50 Index also advanced by a similar magnitude to close at 18,477.05, a record close for the index. The 50-stock gauge hit a record 18,543.15 in intraday trade. Infosys Ltd. contributed the most to the index gain, increasing 4.5%. Hindalco Industries Ltd. had the largest increase, rising 5.2%. Today, 32 of 50 shares rose, while 18 fell.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index adding nearly 1% and the S&P BSE SmallCap rising nearly 0.7%. Barring S&P BSE Consumer Discretionary index, S&P BSE Healthcare index and S&P Telecom index, all the other 16 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Metal index gaining over 4%.

The market breadth was skewed in favour of bulls. About 1,826 stocks advanced, 1,624 declined and 174 remained unchanged.

CG Power & Industrial Solutions Ltd. entered into a settlement and signed a binding term sheet with Evie Real Estate Pvt Ltd. for the sale of the company's property at Kanjurmarg, Mumbai.

In an exchange filing, the sale consideration was Rs 382 crore, as pwer the term sheet, in addition to the repayment of Rs 20 crore of deposit.

CG Power had entered into an agreement for sales with Evie Real Estate on October 28, 2015. The sale of the property was to be completed by December 27, 2019. However, the sale transaction could not be completed before the 'closing date'.

The Kolkata-based operator of multispecialty hospitals under the ILS Hospitals brand seeks SEBI's approval to raise as much as Rs 17.5 crore ($2.3 million) selling new shares, while its shareholders plan to sell up to 29.89 million shares in an initial public offering, according to its draft prospectus.

Dam Capital Advisors and SBI Capital Markets will manage the IPO

Shares of Ramkrishna Forgings Ltd. rose 3.92% in intraday trade to Rs 1,209 apiece after the company bagged a 'significant' order from Indian Railways for the manufacture of Loco Shells.

In an exchange filing, the company said that the Loco shells will be supplied from new fabrication unit in Jamshedpur. Lalit Khetan, Executive Director & CFO at Ramkrishna Forgings said that the loco shells market is estimated to be nearly Rs 1,000 crore and the company intended to garner strong market share in loco shells.

Of the four analysts tracking the company, three maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 13.7%

The relative strength index on the stock was 71, suggesting it may be overbought. Trading volume on the stock was 1.8 times the 30-day average volume, for this time of the day.

Shares of Infosys Ltd. rose 3.92% in intraday trade to Rs 1,783 apiece. Trading volume was 84% above the 20-day average volume, for this time of the day.

• Infosys trades at 34 times its estimated earnings per share for the coming year.

• Analysts have 45 'buy', two 'hold' and two 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.3%

• Poonawalla Fincorp Ltd. has 1.8 million shares change hands in a bunch.

• Details of buyers and sellers are not immediately known

Source: Bloomberg

Granules India Ltd. has announced that the U.S. FDA approved the Abbreviated New Drug Application (ANDA) filed by its subsidiary, Granules Pharmaceuticals Inc., for Dofetilide capsules, 125 micro gram, 250 micro gram and 500 micro gram. Dofetilide capsules are bioequivalent to reference listed drug product Tikosyn.

Dofetilide capsules are indicated for the maintenance of normal sinus rhythm in pateient of atrial fibrillation. The capsule products have $39 million sales in the U.S. for the twelve company ended August 2021, according to IQVIA Health.

Of the eight analysts tracking the company, six maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 28.4%.

Embassy Office Parks REIT Ltd. announced that it has successfully raised Rs 4,600 crore coupon-bearing debt at an attractive interest rate of 6.5%. The proceeds will be utilised to repay its existing zero-coupon bond outstanding of Rs 4,530 crore, the company said in an exchange filing.

Earlier on Monday, the debenture committee approved the allotment of Rs 3,100 crore Series V NCDs 2021 at 6.5^ average fixed coupon payable quarterly.

Further Embassy REIT has secured a term loan facility at SPV-level from a bank for Rs 1,500 crore at 6.4% floating coupon.

Shares of Paras Defence & Space Technologies Ltd. hit 20% upper circuit to Rs 750.35 apiece after the company approved incorporation of an associate company in association with Krasny Defence Technologies Ltd. The proposed associated company shall be engaged in the field of maintenance, servicing and repairs of defence equipments and naval vessels, Paras Defence said in an exchange filing.

Equitas Small Finance Bank Ltd. has approved raising Rs 1,000 crore through QIP to meet the minimum public shareholding requirements stipulated by SEBI.

Of the 13 analysts tracking the company, 12 maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.6%. Trading volume was 2.7 times the 30-day average volume for this time of the day.

• Investors may face problems with authorizing the sale of stocks due to an issues with Central Depository Services India Ltd., Zerodha said in a tweet.

• Zerodha allows clients to skip authorization to sell holdings on its platform until CDSL resolves the issues.

• Zerodha is in touch with the depository to resolve the issue.

• SEBI also approves IPOs of Nykaa, Adani Wilmar, Sigachi Industries, Latent View Analytics and Penna Cement Industries.

• Paytm's IPO is still under process

• SEBI has received clarifications from Axis Capital, the co-ordinating lead manager for the IPO.

• Also under process: PolicyBazaar's IPO

India's stock benchmarks advanced to record, aided by gains in metal, power, banking and utility stocks, amid positive global cues.

The S&P BSE Sensex rose 0.93% to 61,873.29. The 30-stock index hit a record 61,894.33 in intraday trade. The NSE Nifty 50 index also advanced by similar magnitude to 18,513.80. The 50-stock gauge hit a record 18,524.40 in intraday trade. Infosys Ltd. contributed the most to the index gain, increasing 3.2%. Hindalco Industries Ltd. had the largest increase, rising 6.4%. In midday trading, 36 of 50 shares rose, while 14 fell.

The broader indices almost mirrored their larger peers with both S&P BSE MidCap and S&P BSE SmallCap indexes gaining over 1%. Barring S&P BSE Healthcare index, all the other 18 sectoral indexes compiled by the BSE Ltd. advanced, with S&P BSE Metal index adding over 4%.

The market breadth was skewed in favour of bulls. About 2,001 stocks advanced, 1,282 declined and 166 remained unchanged.

• NSE Nifty 50's one-year forward price-to-earnings, hovering between 20 and 23 times, can remain in the same range as long as earnings growth continues.

• Initial results business updates from technology firms and Covid-impacted sectors hint at in-line or above-consensus earnings.

• Past historical averages for Nifty valuations may not be relevant going ahead especially in a low-yield world and rising earnings.

• If earnings disappoint, P/E may move to lower end of range at 20x

Vinod Karki & Siddharth Gupta, ICICI Securities

Source: Bloomberg

Shares of aluminum companies gained across Asia, with the price of the metal climbing to trade just about 7% below its 2008 record, as the most-energy intensive sector is hit by power restrictions from China to Europe. 

National Aluminium Company Ltd. shares advanced 14.13% in intraday trade while Hindalco Industries Ltd. rose 6.93%.

• India moving towards being included in global bond indexes.

• It's a question of doing quite a few things before it can happen.

• We are in the process of doing that, I hope to do it at the earliest.

Nirmala Sitharaman, Finance Minister

Source: Bloomberg

Tata Consultancy Services Ltd. has been selected as strategic partner by Japan's home improvement company Cainz Corporation,to accelerate its digital transformation, enhance customer experience and aid growth.

In an exchange filing, TCS said that it will drive digital initiatives like the Cainz's mobile app Find as well as co-development initiatives at the new Global Development Centre being set up by TCS for Cainz.

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

• The 5-year yield rose 5.1bps to 5.724%

• The 10-year yield rose 4.2bps to 6.37%

• The 14-year yield rose 4.1bps to 6.856%

• The 5-year-10-year yield spread was 64.6bps, vs previous close 65.5bps

Shares of Mahindra CIE Automotive Ltd. rose over 9.75% in intraday trade to Rs 275 apiece after the company's net profit more than doubled YoY in the September quarter.

Mahindra CIE Automotive Q2FY22 (Consolidated, YoY)

• Revenue up 23% at Rs 2,090.60 crore Vs Rs 1,694.30 crore

• Net profit up 1.74 times at Rs 166.32 crore Vs Rs 60.76 crore

• Ebitda up 78% at Rs 268.41 crore Vs Rs 150.85 crore

• Margin at 12.84% Vs 8.90%

Of the seven analysts tracking the company, six maintained 'buy' and one maintained 'sell' recommendations. The overall consensus of analysts tracked by Bloomberg implied an upside of 10.7%.

Trading volume on the stock was 12.1 times the 30-day average volume, for this time of the day. The relative strength index on the stock was at 74, suggesting it may be overbought.

Lenders in India gained after HDFC Bank, the nation’s biggest bank by market value, posted quarterly profit ahead of analysts’ expectations while continuing to report improvement in asset quality.

Shares of HCL Technologies Ltd. shed nearly 2% in intraday trade to Rs 1,226.2 apiece after the company's margins continued to remain under pressure in the September quarter.

In an exchange filing post market hours Thursday, HCL Tech maitained the revenue and margin outlook unchanged for the ongoing fiscal.

HCL Tech's board has declared an interim dividend of Rs 10 per equity share for FY22. It will be paid out on November 8, 2021.

Of the 49 analysts tracking the company, 39 maintained 'buy', seven maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.9%.

Shares of Tata Power Co Ltd. rose 10% in intraday trade to Rs 244.85 apiece.

The relative strength index on the stock was 91, suggesting it may be overbought. Trading volume was 4.9 times the 30-day average volume for this time of the day.

The advance in Tata Power shares comes amid reports that the company is in talks with large pension and sovereign asset managers like Canada Pension Plan Invest Board (CPPIB) and Government of Singapore Investment Corp. (GIC), to raise $500 million ahead of its initial IPO of its renewable energy business.

Shares of Avenue Supermarts Ltd. rose nearly 11% in intraday trade to Rs 5,900 apiece before reversing gains to shed 2.56% to Rs 5,186.25 apiece, after the company's Q2 net profit more than doubled YoY.

Avenue Supermarts Q2FY22 (Consolidated, YoY)

• Revenue up 47% at Rs 7,788.94 crore Vs Rs 5,306.20 crore

• Net profit up 1.10 times at Rs 417.79 crore Vs Rs 198.55 crore

• Ebitda up 1.03 times at Rs 668.58 crore Vs Rs 329.5 crore

• Margin at 8.58% Vs 6.21%

Trading volume was 13.1 times the 30-day average volume for this time of the day.

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

Analysts have nine 'buy', eight 'hold' and 13 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.4%

India's stock benchmarks opened higher and hit record highs, aided by gains in banking stocks, after strong earnings from HDFC Bank Ltd. over the weekend.

The S&P BSE Sensex rose 0.66% to 61,707.85. The NSE Nifty 50 advanced by a similar magnitude to 18,464. Both the indices hit record highs in morning trade. Infosys Ltd. contributed the most to the index gain, increasing 1.5%. Hindalco Industries Ltd. had the largest increase, rising 4.5%. In early trading, 42 of 50 shares rose, while 8 fell.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap indexes gaining nearly 1%.

Sunteck Realty Ltd. has acquired 110 acres river front land at Pen-Khopoli Road as it enters second-home market.

The land will be used for plotted and luxurious bungalows development, the company said in an exchange filing

Over the last 18 months, Sunteck has strengthened its presence in the MMR market including the marquee 50 acre land parcels at Shahad (Kalyan), Vasai (West) and projects at Vasind and Borivali

India’s rupee could fall as crude oil prices and U.S. Treasury yields push higher. Traders will also await a conversion of Rs 36,000 crore ($4.8b) of shorter notes to longer tenor debt by the central bank.

• USD/INR gained 0.2% to 75.2575 on Thursday

• 10-year yields rose 1bp to 6.33% on Thursday

• Global funds buy net Rs 1,680 crore of India stocks Thursday: NSE

• They also withdrew Rs 92 crore of corporate debt

• State-run banks bought Rs 1,470 crore of sovereign bonds on Oct. 14: CCIL data. Foreign banks sold Rs 360 crore of bonds.

Source: Bloomberg

Banks in India will be in focus after HDFC Bank, the nation’s biggest lender by market value, posted quarterly profit ahead of analysts’ expectations while continuing to report improvement in asset quality. 

In Focus: ICICI Bank, State Bank of India, Axis Bank, Kotak Mahindra Bank, IndusInd Bank

Vakrangee Ltd. has tied up with post-purchase service platform Servify to provide after-sales device care solutions to the unserved and underserved population in India.

In an exchange filing, Vakrangee said it will facilitate extended care and product protection solutions such as

• Trade-in point services

• Device service collection point

• Warranty plan sale

The National Highways Authority of India is in advanced talks with investors, including Canada Pension Plan Investment Board and Ontario Municipal Employees Retirement System, to raise as much as Rs 6,000 crore through its first private infrastructure investment trust (InvIT), Mint newspaper reports, citing two people aware of the development.

• This will be the first asset monetization by a state-owned company through the InvIT route.

• CPPIB and OMERS declined to comment, while an email sent to NHAI remained unanswered, the newspaper said.

Online pharmacy PharmEasy has closed a funding round of nearly $350 million through a mix of primary and secondary shares ahead of filing its draft red herring prospectus for an initial public offering, Economic Times reported, citing regulatory documents and people familiar with the matter.

• The company has raised around $204 million in primary funding from Singapore’s Amansa Capital, Blackstone-backed hedge fund ApaH Capital, U.S. hedge fund Janus Henderson.

• OrbiMed, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, hedge fund Neuberger Berman and London’s Sanne Group also participated in the round, according to the newspaper.

• PharmEasy parent API Holdings has also closed a $130-$140 million secondary share sale.

• PharmEasy founders bought shares worth around $40 million in the secondary sale, the newspaper cited people briefed on the matter saying.

• India is in no hurry to withdraw stimulus provided to support the economy.

• The challenge I will face, and the teams are also watching in the ministry is the way the fuel prices are leading to a big crest. This uncertainty is a big element for me, which is still an imponderable and I don't know how much will have to be diverted from other most important considerations, and that's the challenge I see.

Nirmala Sitharaman, Finance Minister

Source: Bloomberg

• Avenue Supermarts cut to 'Sell' at Axis Capital Ltd.

• Muthoot Finance rated 'New Buy' at ICICI Securities

• Manappuram rated 'New Buy' at ICICI Securities, Price target at Rs 280