Sensex, Nifty Advance For The Fourth Consecutive Week After Volatile Session

India's stock benchmarks extended gains for the fourth consecutive week after a volatile session.

For Friday, S&P BSE Sensex and NSE Nifty 50 rose to record highs before reversing the gains, dragged by PSU banks, metals and realty stocks.

The Sensex fell 0.21% to 59,015.89. The 30-stock index hit a record 59,737.72 in intraday trade. The Nifty 50 declined by a similar magnitude to 17,585.15. The 50-stock index also logged a record 17,792.95 in intraday trade. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.6%. Tata Steel Ltd. had the largest drop, falling 3.5%. Today, 32 of 50 shares fell, while 18 rose.

The broader indices underperformed larger peers with the S&P BSE MidCap and S&P BSE SmallCap shedding over 1%. Sixteen of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal index falling nearly 2.5%.

The market breadth was skewed in favour of bears. About 1,245 stocks advanced, 2,047 declined and 150 remained unchanged.

Bajaj Finance Ltd. has invested an amount of Rs 195.54 crore in Bajaj Finserv Direct Ltd. The company had approved investment in Bajaj Finserv Direct up to Rs 284 crore on July 20.

In an exchange filing, Bajaj Finance said that the balance investment of approximately Rs 89 crore is expected to be completed in one or more tranches by the end of the current financial year.

The investment is intended to support the existing line of businesses of Bajaj Finserv Direct.

Shares of Bajaj Finance rose 3.62% to Rs 7,679.95 apiece in intraday trade

Of the 30 analysts tracking the company, 14 maintained ‘buy’, 9 maintained ‘hold’ and 7 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19%

India sold Rs 14,000 crore of 6.1% 2030 bond at 6.1810%: RBI statement

• Sold Rs 3,000 crore of 4.26% 2023 bond at 4.0682%

• Sold Rs 9,000 crore of 6.76% 2061 bond at 6.9297%

Shares of Dynamatic Technologies Ltd. rose nearly 4% to Rs 3,139 apiece after the company secured a contract for manufacturing assemblies for Boeing’s newest tactical fighter, F-15EX Eagle II. This is the first time where aerostructures for the latest and most advanced F-15EX Eagle II will be made in India.

In an exchange filing, the company said that the order win will strengthen U.S.-India collaboration on aerospace and defence industrialization. The company will manufacture the assemblies from their plant in Bengaluru, Karnataka.

The relative strength index on the stock was 75, suggesting that it may be overbought.

• Biocon Ltd. will start exploring "commercial opportunities" with Adar Poonawalla-controlled Serum Institute of India Ltd. starting from the second half of next year.

• Biocon to look at investing in mRNA vaccine technology with Serum

• Biocon to look at co-investing with Serum in the long term.

Kiran Mazumdar Shaw, Executive Chairwoman, Biocon

Shares of Easy Trip Planners Ltd. rose 10.67% in intraday trade to Rs 717.65 apiece after the company expanded its international footprint by incorporating wholly-owned subsidiaries in the Philippines, Thailand and the U.S. as part of the phase 2 of the expansion strategy.

In an exchange filing during market hours on Thursday, Easy Trip said that the expansion is done anticipating huge pent-up global demand for travel and tourism sector in the coming months.

The company has already established its presence across UAE, Singapore and the UK to cater to Indians travelling to these countries.

Nishant Pitti, CEO and Co-Founder of Easy Trip said that The Philippines,Thailand and the U.S. represent a significant part of the international holiday package business and expressed hope that the company is set for explosive growth internationally.

Over the past two sessions, shares of Easy Trip Planners rose 20.81%.

The relative strength index on the stock was 83, suggesting it may be overbought

Zensar Technologies Ltd. has been recognised as a disruptor in Avasant's Digital Talent Capability 2021 RadarView report. The report compiled by the management consulting firm evaluates the digital talent capabilities of service providers across technologies and domains.

Ajay Bhutoria, CEO and Managing Director of Zensar Technologies said that the company is focused on building skills in experience engineering and other emerging technologies.

• Data Patterns (India) Pvt, which supplies electronic systems to the defence and aerospace sector, is preparing to file its draft prospectus for an initial public offering that could raise at least $100 million.

• The Chennai-based company, backed by former Blackstone Inc. senior fund manager Mathew Cyriac, plans to lodge the listing documents with the Indian securities regulator as soon as next week.

• The firm intends to list in Mumbai this year.

• Data Patterns is seeking a valuation of around Rs 2,500 crore ($340 million), in the IPO, and is looking to sell an equal number of primary and secondary shares.

• Deliberations are ongoing and details of the offering could change.

Source: People Familiar With The Matter

Shares of eClerx Services Ltd. rose 4.20% to Rs 2,425 apiece after the company’s buy back committee of the board of directors approved September 30 as the record date to determine:

• The shareholders who would be eligible to participate in the buy back,

• The shareholders to whom the letter of offer and tender offer form will be delivered in relation to the buy back and

• The entitlement of equity shareholders in the buy back.

The board approved final buy back price of Rs 2,850 per share and the aggregate amount of buy back up to Rs 303 crore. The total number of shares to be bought back in the buy back shall be up to 10,63,157 equity shares representing 3.05% of the total number of equity shares in the total paid up equity share capital of the company.

Trading volume on the stock was 1.5 times the 30-day average volume at-time, for this time of the day.

All the nine analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracking the company implied an upside of 6.7%.

Shares of JSW Steel Ltd. shed 3%, the steepest intraday decline in nearly 4 weeks, to Rs 668.70 apiece.

The company has raised $1 billion by issuing sustainability-linked bonds in the offshore market becoming the first company in steel sector globally to issue a SLB in a hard currency.

The issue comprised two tranches of 5.5 years and 10.4 years each for $500 million.

Trading volume was 1.1 times the 30-day average volume at-time, for this time of the day. Of the 32 analysts tracking the company, 18 maintained ‘buy’, 9 maintained ‘hold’ and 5 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.1%

India's stock benchmarks pared gains after advanced to record highs, dragged by PSU Banks and metals stocks. Both the benchmarks are on track to log fourth consecutive week of gains. Index heavyweights Reliance Industries Ltd. and Tata Steel Ltd. declined.

The S&P BSE Sensex rose 0.17% to 59,241.40. The 30-stock index hit a record 59,737.32 in intraday trade. Kotak Mahindra Bank Ltd. contributed the most to the Sensex gain, increasing 2.8%. Out of 30 shares in the index, 18 rose and 12 fell. The NSE Nifty 50 was little changed at 17,644.65. The 50-stock index hit a record 17,792.95 in intraday trade.

The broader indices underperformed its larger peers with both the S&P BSE MidCap and S&P BSE SmallCap indices shedding 1%. Thirteen out of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal Index declining nearly 3%.

The market breadth was skewed in favour of bears. About 931 stocks advanced, 2,241 declined and 143 remained unchanged.

• Shares of NHPC Ltd. shed 3.38%, the steepest decline in 11 weeks, to Rs 28.15 apiece.

• Trading volume was 82% of the 20-day average for this time of the day.

• NHPC trades at 8.2 times its estimated earnings per share for the coming year.

• Analysts have seven ‘buy’, one ‘hold’ and no ‘sell’ recommendations on the stock.

• The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.9%.

• Indian government's reform package is credit positive for Bharti Airtel Ltd. & Reliance Jio because it frees up cash flow for reinvestment and enables further investment in next-generation technologies.

• If Bharti opts for the moratorium, it may free up around Rs 12,000-13,000 crore of cash flow annually, which could be used to reduce debt further.

• For Reliance Jio, the removal of spectrum usage charges for spectrum acquired in future auctions will improve profitabillity.

Moody's Note

• Shares of CESC Ltd. rose nearly 10% to Rs 96.90 apiece

• Trading volume was up 42.4 times the 30-day average volume at-time, for this time of the day.

• The relative strength index on the stock was 81, suggesting that it may be overbought.

• The electric utility company trades at 8.8 times its estimated earnings per share for the coming year. The company is priced at 1.3 times book value.

• Of the 18 analysts tracking the company, 16 maintained ‘buy’ and two maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 8.4%

• The company's 1:10 stock split came into effect today.

Indian bonds edge lower ahead of a Rs 26,000 crore ($3.53 billion) debt sale later on Friday. The rupee is higher amid hopes of more inflows amid stock gains.

• The Goods and Services Tax Council is also holding a meeting which traders will monitor for fiscal cues

• The government is offering debt due in 2023, 2031 and 2061 with results due later Friday

• USD/INR down 0.1% to 73.4462

Shares of IDFC Ltd. rose 5.54% to Rs 61 apiece after the company gave its nod to initiate steps to divest its mutual fund business, in its board meeting today, subject to regulatory approvals.

In an exchange filing, IDFC said that the board has authorized respective Strategy and Investment Committees to take necessary steps, including appointing an investment banker.

Shares of Aviation stocks, InterGlobe Aviation Ltd. (+9.51%) and SpiceJet Ltd. (7.90%) rose after domestic air passenger traffic grew in the month of August, according to data from the Directorate General of Civil Aviation (DGCA).

Easing of Covid curbs have supported the traffic. Passenger load factors (PLF) of major commercial airlines were between 60% and 80% during August.

Shorter-term India sovereign securities declined in Friday morning trading.

• The 2-year yield fell 0.8bps to 4.093%

• The 10-year yield rose 1.2bps to 6.18%

• The 18-year yield remained unchanged at 6.899%

• The 2-year-10-year yield spread was 208.7bps, vs previous close 206.8bps

• Shares of Bajaj Holdings & Investment Ltd. rose over 10%, the most intraday gains ever, to Rs 4,785 apiece.

• Trading volume was almost 6-times the 30-day average volume at-time, for this time of the day.

• The relative strength index on the stock was 76, indicating that it may be overbought.

• The company's board of directors are scheduled to meet today to consider payment of interim dividend for the financial year ending 31 March 2022.

Shares of Rajesh Exports Ltd. rose 3.30%, the most in seven weeks, to Rs 634 apiece after the company secured an order worth Rs 691 crore of designer range of jewellery from Germany. The order is to be completed by December 2021.

In an exchange filing, Rajesh Exports said that it will complete the order from its own manufacturing facility. Rajesh Exports is the largest refiner of gold in the world. The company reported consolidated annual sales of Rs 2,58,300 crore for FY21.

Trading volume was quadruple the 20-day average for this time of the day. The relative strength index on the stock was above 70, indicating it may be overbought.

• India is unlikely to embrace a single national rate for taxing petroleum products just yet due to revenue concerns.

• Fuel is a major source of revenue for the federal government, as well as India's states, and folding it into the goods and services tax would hit their revenue collections. This is a buffer which the government would rather exploit than relent.

• It was always felt that GST should also be imposed on energy products. There are some expectations that GST council will probably do something on the energy side, but it is unlikely.

Madan Sabnavis, Care Ratings to Bloomberg TV

Shares of Poonawalla Fincorp Ltd. hit 5% lower circuit to Rs 163.35 apiece after the company's Managing Director and Chief Executive Officer Abhay Bhutada resigned on Thursday following the market regulator's allegations of insider trading against him. Vijay Deshwal, group CEO of the non-bank lender, will continue to run its operations.

The Securities and Exchange Board of India on Wednesday passed an interim ex-parte order against Bhutada and seven other individuals for trading in securities of Magma Fincorp Ltd. while in possession of unpublished price sensitive information.

Of the six analysts tracking the company, four maintained ‘buy’ and two maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 25.3%.

Shares of Hero MotoCorp Ltd. rose 1.17% to Rs 2,954.45 apiece after the company announced its fourth price hike this year.

In an exchange filing post market hours Thursday, Hero Motocorp said that the price hike across the range of motorcycles and scooters will be up to Rs 3,000. The exact quantum of increase depend on the model and the market.

The price hike will come into effect from September 20. The price hike was necessitated to offset the impact of commodity prices. Hero MotoCorp remained hopeful of sustenance of demand in the upcoming festive season.

Of the 48 analysts tracking the company, 29 maintained ‘buy’, 14 maintained ‘hold’ and 5 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8%.

• Shares of Yes Bank Ltd. shed 9%, the most in over a year, to Rs 13.35 apiece.

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

• Analysts have no buy, five hold and 10 sell recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.7%.

• Shares of Yes Bank rose 23% in the past 5 days and 19% in the past 30 days, respectively.

Shares of Kotak Mahindra Bank Ltd. rose 1.11% to Rs 1,927.90 apiece after the Kotak Mahindra Group acquired the vehicle loan portfolio of Volkswagen Group’s Indian captive financing arm Volkswagen Finance Pvt. Ltd.

In an exchange filing post market hours Thursday, Kotak Mahindra Bank said that Kotak Mahindra Prime Ltd. will acquire the passenger cars and two-wheelers portfolio and Kotak Mahindra Bank will acquire the commercial vehicles portfolio of Volkswagen Finance.

Kotak Mahindra Group aims to gain access to over 30,000 high-quality customers with a total loan outstanding with Volkswagen Finance at Rs 1,340 crore. All these acquired loans are classified as standard loans. Besides the standard loans, Kotak group also acquired the NPAs of Volkswagen Finance.

Of the 46 analysts tracking the company, 24 maintained ‘buy’, 16 maintained ‘hold’ and 6 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.2%

• A block of 3.61 million shares in Adani Transmission Ltd., equivalent to 1.3% of float, traded at a market value of Rs 656 crore at 9:15 a.m. Mumbai time.

• The price was Rs 1,820.35 per share, a discount of 5% from Thursday's close; Adani Trans fell 5.2% Thursday and is up 315% this year.

• The block represents 555% of the 20-day average volume.

India's stock benchmarks opened at record highs, aided by gains in banking stocks after government set up and backed ‘bad bank’ with Rs 30,600 crore guarantee for 5 years. Sentiment remained subdued globally due to the prospect of reduced U.S. Federal Reserve stimulus and risks to global recovery from China.

The S&P BSE Sensex rose 0.61% to 59,500.09, a record high for the index. The NSE Nifty 50 also advanced by similar magnitude to a record 17,728.80. Bajaj Finance Ltd. contributed the most to the index gain and had the largest move, increasing 2.5%. In early trading, 42 of 50 shares rose, while 8 fell.

The broader indices underperformed their larger peers with the S&P BSE MidCap largely and S&P BSE SmallCap gaining 0.3%. Fifteen of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Bankex and S&P BSE Telecom index adding 1%.

The market breadth was skewed in favour of bulls. About 1,513 stocks advanced, 575 declined and 94 remained unchanged.

Indian bond traders are awaiting a Rs 26,000 crore ($3.53 billion) debt sale to see whether the recent robust demand at auctions is maintained. The GST Council is also holding a meeting.

• The government is offering debt due in 2023, 2031 and 2061 with results due later Friday

• Benchmark 10-year yields were little changed Thursday at 6.17%

• USD/INR was also little changed Thursday, at 73.5175

• GST Council will meet at 11am Mumbai time with FM Nirmala Sitharaman to chair

• Global funds bought a net Rs 1,620 crore of Indian stocks on Thursday, according to NSE. They purchased Rs 1,150 crore of sovereign bonds under limits available to foreign investors, and Rs 78 crore of corporate debt

• State-run banks bought Rs 576 crore of sovereign bonds on Sept. 16: CCIL data. Foreign banks sold Rs 1,070 crore of bonds.

Asian stocks were steady early Friday as traders weighed risks from China to the global recovery and the prospect of reduced Federal Reserve stimulus.

Equities fluctuated in Japan and fell in Australia and South Korea, while S&P 500 and Nasdaq 100 futures slipped. U.S. stocks closed mostly lower after swinging between gains and losses ahead of Friday’s quarterly expiration of options and futures, which can trigger volatility.

Treasury yields and the dollar stayed higher following surprise strength in U.S. retail sales, which eased worries over the impact of the delta variant and highlighted the case for the Fed to scale back pandemic-era emergency support. Jobless claims increased, likely reflecting volatility in weekly data as the labor market broadly recovers.

India’s SGX Nifty 50 Index futures for Sept. delivery rose 0.5% to 17,695.50, while MSCI Asia Pacific Index gained 0.1%. The NSE Nifty 50 Index added 0.6% Thursday to 17,629.50.

Global equities are on course for a second weekly drop, subdued by the impact of the delta strain on economic reopening, the implications of elevated inflation and the upheavals in China. The Fed’s policy meeting next week is another possible source of volatility as traders await more clues about the time-line for paring bond purchases and eventually hiking interest rates.

Oil was steady, while iron ore’s losing streak threatens to push futures back below $100 a ton on declining Chinese steel output. Gold and silver held drops.

Back home, Jubilant Foodworks, Motherson Sumi, Sun TV are holding their annual shareholders’ meeting. Foreign investors bought net Rs 833 crore of stocks on Wednesday, according to NSDL website.

• Watch: Bank of India, IDBI Bank, Punjab National Bank, Yes Bank after government is said to give new bad bank $4.2 billion sovereign guarantee.