Sensex, Nifty Close Flat After A Volatile Session As IT Leads, Metals Drag
India stocks fell after key stock indices closed at record high levels yesterday.
The S&P BSE Sensex fell 0.1% at 52,275.57, while the NSE Nifty 50 Index closed little changed at 15,740.10. State Bank of India Ltd. and HDFC Ltd. contributed the most to declines on both measures, dropping around 1.2%. Fourteen of the 19 sector gauges compiled by BSE Ltd. advanced, led by information technology stocks.
India’s daily Covid-19 cases dropped below 100,000 for the first time in two months as the government vowed to speed up an inoculation drive. Most Asian stocks slipped as investors await more news on whether the recovery from the pandemic will stoke price pressures and imperil looser monetary policy.
“The market has factored in the positives of slowing pace of infections and has shifted focus on the emerging inflation trends in the U.S. and the likelihood of Fed raising rates,” said Kranthi Bathini, a strategist at Wealthmills Securities Ltd. “Still, the global investment environment remains favourable and stable for equities.”
Best Performing Sector Index
Worst Performing Sector Index
United Breweries Jumps To Highest in 22 Months
United Breweries Ltd. rose 4.8%. Trading in the company's call options was triple the average.
- The stock was the best performer among its peers.
- Trading volume was 964,756 shares, 56% above the 20-day average of 619,454 shares for this time of day.
- Trading in the company's put options totalled 1,343 contracts, compared with the average of 402 over the past 20 days. Trading in the company's call options totalled 7,296 contracts, compared with the average of 2,885 over the same period.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- United Breweries trades at 73 times its estimated earnings per share for the coming year. It trades at 310 times trailing EPS.
- Analysts have 13 buy, two hold, and two sell recommendations on the stock.
- The price target of Rs 1,365.44 represents a 3.2% decrease from the last price
Sensex, Nifty Reverse Drop To Trade Flat
Indian equity benchmarks fluctuated between gains and losses after opening at fresh record highs.
The S&P BSE Sensex was little changed at 52,342.34, but remains on track for a fresh record high, while NSE Nifty 50 Index was trading flat as well at 15,748.90 -- after touching a record high of 15,778.80.
The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.37% and S&P BSE SmallCap advanced 0.97%. Seven of the 19 sector sub-indices compiled by BSE Ltd. declined, led by metal stocks. The S&P BSE Information Technology was the best performer, up 2.91%.
The market breadth was slightly skewed in favour of the bulls. About 1,753 stocks gained, 1,366 declined and 140 remained unchanged.
Piramal Rises On Approval Of Dewan Housing Acquisition Plan
Shares of Piramal Enterprises Ltd. rise after the Mumbai-based conglomerate’s plan to take control of Dewan Housing Finance Ltd. via bankruptcy process was approved by the company law court.
- Shares rise for third consecutive day, gaining as much as 7.7%, their biggest single-day surge since Feb. 15
- Piramal is acquiring Dewan Housing at around Rs 3,400 crore, assets include Rs 38,500 crore of net loans, Rs 1,000 crore of insurance and cash of Rs 9,500 crore rupees, Citi analysts wrote in a note
- The analysts see the implied purchase price of loans at Rs 24,000 crore or 0.6x of the book value
- The acquisition will be funded with around Rs 19,550 crore of bonds, carrying a 6.75% coupon, which will result in lowering the cost of funds for Piramal that stood at 10.8% for FY21, the note says
- The company’s share of retail loans should rise to ~45% vs 12% currently
- “A more granular book should get financing at lower rates and open up the possibility of a rating upgrade,” the note added.
- Citi retains buy rating on Piramal, raises price target to Rs 2,260 from Rs 2,110