Sensex, Nifty Close Higher As Wipro Leads Rally In IT Stocks
India stock benchmarks ended higher after fluctuating between gains and losses throughout the session aided by a rally in IT stocks ahead of key earnings. The sentiment was also helped by the easing in wholesale inflation for the first time in six months.
The S&P BSE Sensex rose 0.25% to 52,904.05, and the NSE Nifty 50 Index advanced 0.26% to 15,853.95. Infosys Ltd. contributed the most to the index gain, increasing 2.1%. Wipro Ltd. had the largest increase, rising 7%.
The broader markets mirrored the performance of their larger peers. The S&P BSE MidCap rose 0.23% while the S&P BSE SmallCap advanced 0.24%. Thirteen of the 19 sectoral indices climbed, led by the S&P BSE IT index, up 2.21%.
The market breadth was skewed in favour of the bulls. About 1791 stocks advanced, 1448 declined and 139 remained unchanged on the BSE.
Nifty has been consolidating in a narrow range since the past few trading sessions. The medium-term view remains positive with buying on dips advisable. For the short-term, consolidation expected to continue with resistance seen at 15,980 levels. Realty and NBFC stocks expected to trade with a positive bias.Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Gujarat Fluorochemicals Hits Record High
Shares of the refrigerants maker gained as much as 10.3% to Rs Rs. 1,420.00 apiece, a record high for the stock.
Trading volume was more than triple the 20-day average for this time of day.
The shares are up 19% in the past 5 days and rose 26% in the past 30 days.
The relative strength index on the stock was above 70, indicating it may be overbought.
Gujarat Fluorochemicals trades at 33 times its estimated earnings per share for the coming year.
Supreme Court Upholds Regulator’s Powers In Franklin Case
The Supreme Court has upheld the legal validity of securities rules relating to winding up of funds, including powers of Securities and Exchange Board of India to act against faltering fund managers.
Supreme Court partially upholds Karnataka High Court’s ruling on Franklin Templeton Indian unit’s fund closure last year
Top court rules consent of investors is must before winding up a fund; Unit holders’ voting to be held after trustees of fund give closure notice, court says
NOTE: In October 2020, India Court Halts Franklin’s Fund Closures Without Investor Nod
Court rules Sebi has powers to take action against fund managers if they have wrongly decided to shut the fund
Two-judge Supreme Court panel headed by S. Abdul Nazeer says the ruling on Wednesday has dealt only with legal aspects of the Franklin case as orders on fund distribution and voting were already given
Court says it will hear the Franklin case in October, after a hearing at the securities appellate tribunal
Detailed copy of the top court’s verdict is awaited
June Local Passenger Vehicles Sales 231,633 Units
Sales of passenger vehicles, which include cars and SUVs, more than doubled from a year ago to 231,633 units in June, according to data released by Society of Indian Automobile Manufacturers.
NOTE: Sales in the year-ago month were hit by a nationwide lockdown and plunged to 105,617 units, compared with 209,522 units sold in June 2019
June local car sales 121,378 units vs 55,497 units YoY
June three-wheeler sales 9,397 units vs 10,300 units YoY
June two-wheeler sales 1.06 million units vs 1.01 million units YoY
The industry is facing headwinds like steep increase in commodity prices, semi-conductor shortage, and fear of a third Covid wave, the group’s president Kenichi Ayukawa says in a statement