Sensex, Nifty Close At Record High Led By Lenders; Titan Jumps 6.7%
India’s key stock gauge climbed to a new record amid optimism that accelerated vaccination efforts will help revive the economy ravaged by the coronavirus.
The NSE Nifty 50 Index advanced 0.7% to 15,690.35, while the S&P BSE Sensex also rose by a similar magnitude to 52,232.43 -- a new record close for both the large-cap benchmarks. All of the 19 sector sub-indices compiled by BSE Ltd. climbed, led by a gauge of consumer durable companies.
While domestic equites continue to look good, investors must focus on quality stocks with robust earnings visibility and margins of safety. Sectors considered to be major beneficiaries of capex revival are likely to be back in focus in coming weeks.Binod Modi, Head Strategy at Reliance Securities
S&P BSE Consumer Durables Index At Record High
A gauge of India’s consumer stocks climbed to a record high on optimism that a pick up in the pace of vaccinations and gradual reopening of businesses from localised lockdowns will help revive demand for air-conditioners, ceiling fans, washing machines and other consumer-utility products.
India announced ordering 300 million doses of the coronavirus vaccine from local manufacturer Biological-E while the daily additions for coronavirus cases continue to decline.
Property Stocks Rise On New Law To Boost Rental Housing
India’s real-estate stocks surged after the government rolled out a model law that aims to overhaul the legal framework for rental housing in the country.
- The law, titled the Model Tenancy Act, proposes to establish legal authority to handle issues related to tenancy, form courts to handle related matters in every state to ensure speedy dispute resolution, according to a government statement issued Wednesday
- The act will make renting more lucrative for both landlords and tenants by plugging the many gaps that currently exist in policies regulating the rental-housing segment, Pritam Chivukula, a director at Mumbai-based Tridhaatu Realty & Infra Pvt Ltd., said in a statement
India Said To Seek LIC Mega IPO Bank Proposals In June: Bloomberg Exclusive
India is planning to ask for proposals from investment banks this month for the initial public offering of Life Insurance Corp. of India, according to a Bloomberg report quoting people familiar with the matter.
The government will send out invitations in the coming weeks for the share sale of the country’s biggest insurer, said the people, who asked not to be identified as the discussions are private. An offering could happen as soon as March 2022, the people said.
Spandana Sphoorty Logs Biggest Jump On Record
Shares of Spandana Sphoorty Financial jumped 20%, the biggest move since the company's IPO on Aug. 19, 2019. Trading volume was almost 40 times the average for this time of day.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- The shares are up 16% in the past 5 days and rose 11% in the past 30 days.
- Stock advanced 27% in the past 52 weeks. The Sensex gained 53%.
- Spandana Sphoorty Financial trades at 26 times its estimated earnings per share for the coming year.
- Insiders hold a 16% stake. In the past six months, they cut their holdings by less than 0.1%. Officers and directors disclosed 15,000 shares of open market purchases at an average price of Rs 675.45 a share and 20,000 of sales at Rs 742.70 a share.
- Of the six analysts tracking Spandana Sphoorty, 5 have a ‘buy’ rating, 1 suggests a ‘hold’, according to Bloomberg data. The average of 12-month consensus price targets implies an upside of 20.1%