Nifty, Sensex Close Higher After Another Volatile Session; Metal Stocks, RIL Drag
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India’s equity benchmarks swung between gains and losses before ending the trading session higher due to a late surge before the closing bell. The benchmarks hit record highs in intra-day trade. Decline in metal stocks and index heavyweight RIL capped some of the gains.
The S&P BSE Sensex gained 0.28% to 54,554.66. The 30-stock index registered a record of 54,779.66 before slipping to 54,308.77 levels in intraday trade. The NSE Nifty 50 advanced 0.13% to 16,280.10. Nifty 50 also hit a record of 16,359.25 in intraday trade.
The broader indices underperformed their larger peers with the S&P BSE MidCap index slipping nearly 1% and the S&P BSE SmallCap shedding over 2%. Thirteen of the 19 sectoral indices compiled by the BSE Ltd declined, led by S&P BSE Metal index which fell nearly 3%.
The market breadth was skewed in favour of the bears. About 762 stocks advanced, 2,496 declined and 116 stocks remained unchanged.
"Midcap and smallcap stocks continued to see selling pressure as investors booked some profit in the backdrop of rising delta variant coronavirus cases in various parts of the world. We believe that underlying strength of domestic market remains intact and any meaningful correction in the market should be taken as an opportunity to buy", wrote Binod Modi, Head Strategy, Reliance Securities.
"Even as markets witnessed sharp volatility, benchmark Nifty surpassed intraday resistance of 16,300. The sharp intraday correction from 16,359 to 16,202 clearly indicates uncertainty between bulls and bears. In the broader market, over 1,500 stocks traded in the red, whereas about 265 stocks closed in positive which is broadly negative for the market. Technically, on daily charts the Nifty has formed a Doji kind of formation which indicates strong possibility of intraday correction if the index succeeds to trade below 16,180. We are of the view that as long as it's trading above 16,180 the uptrend texture is bullish and likely to continue up to 16,350. Further upside may also continue which could lift the index up to 16,400. On the other side, below 16,180, the correction wave will continue up to 16,150-16,120 levels", Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities wrote in a note
Manappuram Finance Declines Post June Quarter Miss
Shares of Manappuram Finance Ltd. declined 3.76% after the company reported net income for the first quarter that missed the average analyst estimate.
June Quarter Results (Consolidated)
Net income at Rs 436.85 crore vs estimate of Rs 456 crore (Bloomberg Consensus)
Revenue at Rs 1,563.30 crore vs estimate of Rs 1,095 crore
Total costs at Rs 987.37 crore vs Rs 1,008.17 crore QoQ
Other income at Rs 10.44 crore vs Rs 7.93 crore QoQ
Jindal Steel Declines Post In-Line Q1
Shares of Jindal Steel and Power Ltd. shed 5.21% to Rs 396.35 apiece after the company reported net income for the first quarter that met the average analyst estimate.
June Quarter Results
Net income at Rs 2,543.27 crore vs estimate of Rs 2,562 crore (Bloomberg Consensus)
Revenue at Rs 10,609.50 crore vs estimate of Rs 11,008 crore
Total costs at Rs 7,233.55 crore vs Rs 6,793.91 crore QoQ
Other income at Rs 33.67 crore vs Rs 20.80 crore QoQ
Of the 25 analysts tracking the company, 21 maintained ‘buy’, 3 maintained ‘hold’ and 1 analyst maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 35.7%. Shares of Jindal Steel gained 87% in 2021 so far compared to 75% increase for S&P BSE Metal
Coal India Slips On Q1 Miss
Shares of Coal India Ltd. shed 1.75% to Rs 140.75 apiece after the company reported net income for the first quarter that missed average analyst estimate.
June Quarter Results (Consolidated)
Net income at Rs 3,174.14 crore vs estimate of Rs 3,973 crore (Bloomberg Consensus)
Revenue at Rs 23,293.65 crore vs estimate of Rs 25,659 crore
Total costs at Rs 21,626.48 crore vs Rs 21,565.15 crore QoQ
Other income at Rs 680.87 crore vs Rs 1,273.98 crore QoQ
Tejas Networks Advances 5% For The 14th Consecutive Session
Shares of Tejas Networks Ltd. advanced 5% to Rs 360.75 apiece. This is the fourteen consecutive session in which the stock has gained by same magnitude.
The company announced an open offer for the acquisition of 4,02,55,631 fully paid-up equity shares of face value of Rs 10 each by Panatone Finvest and Akashastha Technology along with Tata Sons.
The open offer is scheduled to begin on September 23 and close on October 6, as per regulatory filing. The Relative Strength Index is 95 suggesting that the stock may be overbought. Shares of Tejas Networks gained 163% in 2021 so far.