Sensex, Nifty Log Best Day Since Exit Polls On Steps To Revive Growth
Here’s a quick look at all that could influence equities today.
KEY HIGHLIGHTS
Closing Bell: Sensex Jumps Nearly 800 Points; Nifty Above 11,000
Indian equity benchmarks registered their biggest intraday gain in three months as government’s announcements last week boosted market sentiments.
Finance Minister Nirmala Sitharaman announcing a slew of measures on Friday, including the withdrawal the surcharge on foreign investors.
An economic revival is on cards in the second half of the current financial year, said Nandita Agarwal Parker, managing partner, Karma Capital Management. “"India's growth revival should stand out as doubts and mistrusts among investors, companies and SMEs and the feeling of lack of liquidity will get solved in the near term,” she said in am interview with BloombergQuint.
The S&P BSE Sensex rose 2.16 percent to close at 37,494.12 and the NSE Nifty 50 gained 2.11 percent to 11,057.85. The broader markets represented by the NSE Nifty 500 Index rose 1.98 percent.
The market breadth was tilted in favour of buyers. About 1,300 stocks advanced and 493 shares declined on National Stock Exchange. Ten of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Index’s 4 percent advance. NSE Nifty Metal Index was the only loser, down 0.97 percent.
HUL Hits All-Time High
Shares of the country’s largest consumer goods maker rose 1.3 percent to a lifetime high of Rs 1,883.70 apiece.
The stock traded 58 times its estimated earnings per share for the coming year, according to Bloomberg data. Of the shares traded, 45 percent were at ask price and 35 were at bid price.
HDFC Jumps After Receiving Regulatory Approval For Munich Merger
Shares of the non-banking lender rose 4.2 percent intraday, the most in three months, to Rs 2,129.25 each.
Competition Commission of India approved acquisition of 51.2 percent stake in health insurance company Apollo Munich by HDFC and the subsequent merger of Apollo Munich into HDFC Ergo, according to the regulator’s official Twitter handle.
In June, HDFC agreed to acquire Apollo Hospitals Group's entire 50.8 percent stake in Apollo Munich Health for Rs 1,336 crore and also the 0.4 percent stake held by a few employees for Rs 10.84 crore.
The stock traded 11 percent below the Bloomberg consensus one-year target price.
Dilip Buildcon Gains After Plan To Sell Stake In Road Projects
Shares of the Bhopal-based infrastructure developer rose 6.2 percent to Rs 379 each.
The company’s board has approved divestment or partial stake sale in five road projects, according to an exchange filing.
The stock traded 62 percent below the Bloomberg consensus one-year target price.
Sensex, Nifty Near Day's High; Private Lenders Top Performers
Indian equity indices gained in the afternoon trade led by gains in Indiabulls Housing and HDFC.
Finance Minister Nirmala Sitharaman announcing a slew of measures on Friday, including the withdrawal the surcharge on foreign investors, fueled positive sentiments among the market participants.
“Measures only reinforce the confidence in markets and reflects that the government is keen to repair the economic damage done in the past quarters,” said Vikas Khemani, founder, Carnelian Capital Advisors, in an interview to BloombergQuint. “ Markets will consolidate for the next 2-3 months and bottom out.”
Markets will deliver phenomenal returns in the next 2-3 years as I see more upside potential from a risk-reward perspective. This argument is based on favourable macro conditions such as low commodity prices and falling interest rates.Vikas Khemani, Founder, Carnelian Capital Advisors
The S&P BSE Sensex rose 1.08 percent to 37,097.82 and the NSE Nifty 50 gained 0.96 percent to 10,933.65 as of 12:18 pm. The broader markets represented by the NSE Nifty 500 Index rose 0.90 percent.
The market breadth was tilted in favour of buyers. About 1,162 stocks advanced and 564 shares declined on National Stock Exchange. Nine of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Index’s 2.30 percent advance. NSE Nifty Metal Index was the top loser, down 3.07 percent.
Delta Corp Surges Over 10%
Shares of the casino-chain operator rose as much as 10.1 percent, its biggest intraday jump in over three months, to Rs 163 each.
The trading volume was more than three times the20-day average for this time of the day, according to Bloomberg data. The stock traded at 19 times its estimated earnings per share.
India Must Extend 'Olive Branch' To Manufacturers To Benefit From Trade War, Says Basant Maheshwari
The Indian government must capitalise on U.S.-China trade war by encouraging global companies such as IBM and Apple to set up their alternative manufacturing units in India. That’s according to market veteran Basant Maheshwari.
‘India should get a think tank of economists to bring global manufacturing units to India and give them incentives like lower corporate tax rates,” said the co-founder and partner at Basant Maheshwari Wealth Advisers LLP, which managed assets worth Rs 224 crore as of June. “Otherwise, we will just reduce ourselves (workforce) to code coolies.”
Watch the full interview here:
Unichem Falls After U.S. FDA Inspection
Shares of the specialty pharma company declined 3.4 percent intraday to a three-week low of Rs 170.10 each.
U.S. Food and Drug Administration issued one observation after inspecting the company’s Ghaziabad facility, according to an exchange filing. The company will provide corrective action plan in 15 working days, the filing said.
The promoters and individual insiders own 51 percent stake in the company, Bloomberg data showed.
Tata Steel Hits Three-Year Low
Shares of the Tata-group company slumped as much as 6.40 percent to Rs 323.15 apiece, its lowest level since July 2016.
The relative strength index on the stock was below 30, indicating it may be oversold. The stock traded at 6.5 times its estimated earnings per share, Bloomberg data showed.
Markets Check: Sensex, Nifty Reverse Opening Gains; PSU Banks Rally
Indian equity indices erased their opening gains even as state-run banks rallied on account of advancement of banking recapitalisation package.
Finance Minister Nirmala Sitharaman announcing a slew of measures on Friday, including the withdrawal the surcharge, fueled positive sentiments among the market participants.
The S&P BSE Sensex declined 0.64 percent to 36,513.08 and the NSE Nifty 50 fell 0.63 percent to 10,772 as of 10:10 am. The broader markets represented by the NSE Nifty 500 Index fell 0.47 percent.
The market breadth was tilted in favour of buyers. About 901 stocks advanced and 472 shares declined on National Stock Exchange. Nine of the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 4.18 percent slump. NSE Nifty Bank Index was the top gainer, up 1.16 percent.
Cupid Jumps After Winning UN Order
Shares of the contraceptives manufacturer extended gains for the second session after advancing 7.7 percent intraday to Rs 136 each.
The company received orders worth Rs 4.95 crore from United Nations Population Fund for supplying condoms to Angola, according to an exchange notification.
The stock declined 58 percent in the past 12 months compared to a 3.9 percent fall in Sensex.
IndiGo Gains After Gangwal Flags Truce With Co-Founder
Shares of the country’s largest airline rose 2.6 percent to Rs 1,687.95 each, its highest price in over two months.
Rakesh Gangwal said he will support company proposals at a shareholder meeting scheduled today to expand its board after an agreement on policy changes. Also, the board approved appointment of Meleveetil Damodaran as an independent director, according to an exchange filing.
The stock advanced 58 percent in the past 12 months compared with a 3.4 percent fall in Sensex.
State-Run Banks Surge After Government Advances Recap Package
Shares of the state-run lenders were among the top performers in today’s trade.
Finance Minister Nirmala Sitharaman said the government will release Rs 70,000 crore upfront for bank recapitalisation to tackle liquidity crunch in the financial sector.
Opening Bell; Sensex, Nifty Open Higher
Indian equity indices rose sharply at open. led by gains in Indiabulls Housing and Yes Bank.
Finance Minister Nirmala Sitharaman announcing a slew of measures on Friday, including the withdrawal the surcharge, fueled positive sentiments among the market participants.
The S&P BSE Sensex rose 1.02 percent to 37,068.20 and the NSE Nifty 50 gained 0.93 percent to 10,929.60 as of 9:18 am. The broader markets represented by the NSE Nifty 500 Index rose 0.87 percent.
The market breadth was tilted in favour of buyers. About 1,192 stocks advanced and 290 shares declined on National Stock Exchange. Nine of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Index’s 4 percent jump. NSE Nifty Metal Index was the top loser, down 0.26 percent.
Money Market Update: Rupee Opens Lower; Breaches 72/Dollar
The Indian rupee opened lower against the U.S. dollar. The home currency weakened as much as 0.46 percent to Rs 72 against the greenback.
The rupee is likely to come under pressure as riskier assets and currencies come under pressure after the latest escalation in U.S.-China trade war.
Your Complete F&O Setup
August Futures
- Nifty futures closed at 10,842.7, premium of 13.4 points versus discount of 8.9 points.
- Nifty futures open interest down 4.5 percent, sheds 8.6 lakh shares in OI.
- Bank Nifty futures closed at 27,016, premium of 57 points versus discount of 12 points.
- Bank Nifty futures OI down 4.5 percent, sheds 78,600 shares in open interest.
Options
- Nifty PCR unchanged at 1.02 (across all series)
- Nifty Monthly Expiry 29 -Aug
- Max open interest on call side at 11,000 (45.9 lakh shares)
- Max open interest on put side at 10,500 (25.8 lakh shares)
- Open interest addition seen at 10,800P (+3.3 lakh shares), 10,400P (+3.3 lakh shares)
- Open interest shedding seen at 10,900P (-3.8 lakh shares), 11.000P (-3.4 lakh shares)
Stocks In Ban
- DHFL
- IDBI Bank