Closing Bell
India's stock benchmarks rose, aided by gains in metal, banking, realty stocks and extended gains for the second day in a row.
The Sensex added 443 points (0.75%) to 59,245.98. The 30-stock gauge rose over 500 points during the session. The Nifty 50 also gained 0.7% to 17,665.80. Today 36 of Nifty 50 stocks rose while 14 fell. Hindalco, JSW Steel, NTPC, ITC, Sun Pharma, RIL, L&T were among the top gainers.
The MidCap index underperformed its larger peers, rising 0.5% while SmallCap gauge slightly outperformed Sensex and Nifty, adding 0.9%. Barring Oil & Gas, Power, all the other 17 sectoral indices compiled by BSE Ltd. advanced with Metal index rising 2%.
The market breadth is skewed in the favour of bulls. About 2220 stocks rose, 1345 fell and 171 remained unchanged.
Foreign Investors Net Sellers
Overseas investors remained net sellers for the third straight day on Monday.
The longest buying stretch by FPIs, this year so far, lasted 13 days from July 28 to August 17.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 811.75 crore today.
Domestic institutional investors, on the other hand, turned net buyers and bought equities worth Rs 533.77 crore today.
Institutions net sold Rs 2,294.69 crore worth of equities this month so far and Rs 35,777.77 crore till date in 2022.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 3bps to 7.20% during the session. The 10-year bond yield closed at 7.22%.
Source: Bloomberg
Rupee Trims Losses
Rupee depreciated 11 paise to 79.91 during the session. The Indian currency trimmed some of the losses and closed at 79.85 against the U.S. dollar
Source: Bloomberg
Sembcorp Industries Sells India Energy Business
Singapore’s Sembcorp Industries to sell India unit Sembcorp Energy for around 2.1 billion Singaporean dollars (Rs 11,700 crore).
Sembcorp India is one of the largest independent power producers in the country, operating two supercritical coal-fired plants totalling 2.6GW.
The sale has been made to Tanweer Infrastructure, which is indirectly owned by a consortium led by Oman Investment Corporation.
Source: Singapore Exchange filing
Mastercard Replaces Paytm, Acquires Title Sponsorship Rights For All BCCI International & Domestic Games
Mastercard to be the title sponsor for all international matches held on home ground, domestic cricket matches like Irani Trophy, Duleep Trophy and Ranji Trophy and also all junior cricket (U-19 and U-23) matches held in India for the 2022-23 season.
Earlier, Paytm had won the rights for Rs 326.8 crore to be paid for the 2019-23 home season.
Source: BCCI statement
PVR Jumps Most In Over A Month
Shares of PVR Ltd. rose nearly 4.5%, most in over a month since July 29. Trading volume is slightly more than 30-day average (1.2 times). Share price crossed above 50-day simple moving average, suggesting potential upward price momentum.
The rise comes ahead of release of the movie Brahmastra. "If the movie turns out to audience's liking, it would pull them back to cinemas", according to Edelweiss Securities. The brokerage retained 'buy' on PVR and Inox Leisure.
Of the 31 analysts tracking the company, 27 maintain 'buy', two recommend 'hold' and two suggest 'sell'. The return potential of the stock is 15.1%
Source: Bloomberg
RIL Rises Most In Five Weeks As Morgan Stanley Raises Target
Shares of Reliance Industries rose over 2% during the session, most in five weeks. The rise comes after 4% fall in the preceding two sessions.
Morgan Stanley reiterated 'overweight/in-line' and raised target price from Rs 3,015 to Rs 3,085, an implied return of 21.91%. The brokerage termed the current investment cycle of RIL, as 'less aggressive'. Yes Research reiterated 'add' and Credit Suisse maintained 'neutral' on the stock too, on September 5.
Of the 39 analysts tracking the company, 31 maintained 'buy', five suggest 'hold' and three recommend 'sell'. The return potential of the stock is 12.1%.
Source: Bloomberg
ABB India Falls Most In Over Ten Weeks After Credit Suisse Downgrades Stock To 'Underperform'
Shares of ABB India fell nearly 3.5%, steepest intraday decline in over ten weeks since June 17, 2022.
Trading volume is slightly more than the 30-day average (1.2 times). The relative strength index is at 74, suggesting that the stock may be overbought.
The decline comes after Credit Suisse downgraded stock to 'underperform' from 'neutral' and maintained the target price unchanged at Rs 2,600, an implied downside of 20.72%.
Credit Suisse cited possibility of prolonged slowdown, delay in pick-up of investment activity in India, geopolitical risks for exports, as key risks.
Source: Bloomberg, Credit Suisse
'Very Good Chance' For India To Join Global Bond Indices: Morgan Stanley
After the visit to India in July and talking to officials, we felt that the government is still open and keen to have the index inclusionGek Teng Khoo, Min Dai, Madan Reddy, Morgan Staley Asia Strategists
Auto-Linked Stocks Gain On Strong August Auto Sales, Easing Chip Shortage Issues
Shares of auto-linked stocks gained on strong auto sales numbers in August and easing chip shortage issues.
ICICI Securities, in its note, said that the production growth outlook would be aided by rising semiconductor supply in the coming months and added that the growth outlook for auto component makers remained strong amid adverse global macros.
ICICI Securities maintains 'buy' on Apollo Tyres, Balkrishna Industries, Bharat Forge, Mahindra CIE, Samvardhana Motherson, Sona Comstar, in its coverage universe.
Schaeffler India, Tube Investments, Amara Raja Batteries, Exide Industries shares advanced, during the session.
Source: Bloomberg, ICICI Securities
Tamilnad Mercantile Bank IPO Subscription Status: Day 1 Live Updates
The initial public offering of Tamilnad Mercantile Bank Ltd., the 101-year old lender that traversed through its fair share of regulatory woes, opened for subscription on Monday. The price band has been fixed at Rs 500-525 apiece.
Subscription Status: Day 1
The IPO subscribed 0.32 times as of 1:57 p.m. on Sept. 5
Institutional investors: 0.30 times.
Non-institutional investors: 0.05 times.
Retail investors: 0.80 times.
European Markets Decline
European markets decline after Russian energy firm Gazprom announced that gas flows thrugh the Nord Stream 1 pipeline to Europe would be halted 'indefinitely'. The announcement has spurred worries about energy supply for Europe.
Source: Bloomberg
Dish TV Jumps 20%; Trading Volume Surges
Shares of Dish TV India rose 20%. Trading volume is nearly seven times the 30-day average. The relative strength index is at 85, suggesting the stock may be overbought.
Share price crossed above 200-day simple moving average, indicating potential upward price momentum.
The stock is the top gainer on the Nifty Media index which is up 2%.
Source: Bloomberg
Midday Market Update: Sensex, Nifty Rise; Metals, Realty Stocks Advance
India's stock benchmarks rose, aided by gains in metals, realty stocks.
The BSE Sensex rose 400 points (0.66%) to 59,190, and the NSE Nifty50 gained over 100 points to 17,650. Mahindra & Mahindra Financial rallied 4 per cent and was trading at its 52-week high on the back of strong August business numbers
The MidCap index underperformed its larger peers, rising 0.3% while SmallCap gauge outperformed, rising 0.9%. Barring Oil & Gas and Power measures, all the other 17 sectoral indices compiled by BSE advanced, with Metal index jumping nearly 2%.
The market breadth is skewed in the favour of bulls. About 2215 stocks rose, 1291 fell and 169 remained unchanged.
HAL On Course To Rise For Seventh Day
Shares of Hindustan Aeronautics Ltd. rose nearly 2% and are on course for the seventh day in a row.
The company said that a consortium of NSIL, HAL will exchange a PSLV Productionisation Contract of Rs 860 crore with Larsen & Toubro. The order, which pertains to realisation of five PSLV-XL Launch Vehicles, will be exchanged during the inaugural session of 7th Bengalore Space Expo 2022 today.
The relative strength index of the stock is 77, suggesting it may be overbought.
All eight analysts tracking the company maintain 'buy'. The return potential of the stock is 12.4%.
Source: Exchange filing, Bloomberg
Federal Bank Says News Report Of Merger With Another Private Bank Is 'Speculative In Nature'
Dixon Tech Gains After Signing Deal With Google To Sub-License Rights Relating To Android, Google TV
Shares of Dixon Technologies India erased 1% losses and gained nearly 1.5%, during the session.
The rise comes after the electronic equipment maker bagged sub-licensing rights relating to Android and Google TV. Dixon Tech is the first contract manufacturer in India to get the rights. The partnership will help the company offer cost effective experience to customers, the company said in an exchange filing.
Of the 21 analysts tracking the company, 14 maintain 'buy', three suggest 'hold' and four recommend 'sell'. The return potential of the stock is -2.9%.
Source: Exchange filing, Bloomberg
Digital Payment Revolution Will Be Taken Forward With Greater Zest: FM
Clear ingress is being made due to digital technology.
Banks approaching the market to raise capital are being recognised for their good health.
Ease of doing business will have to be a continuous exercise.
Infrastructure will take a greater priority through greater coordination with PM Gati Shakti.
Gati Shakti to enable existing infrastructure facilities to be integrated with the hinterlands.
The next 25 years will be very critical for India.
Ministry of finance will be working on a pathway which will be predictable and consistent and will give every stimulus required for the growth of the Indian economy.
Government will be willing to engage with industry to understand how speedily we need to act and how quickly we need to remove the hurdles.
We earnestly request industries to ensure that the channel of communication with the government is kept up
Industry response to PLI positive.
Segments of industries are now willing to move to India.
The government is working together with state governments to make sure they are brought in facilitated with a plug and play model.
Source: FM at Ashwamedh-Elara India Dialogue 2022.
Federal Bank Rises To 52-Week High As Nirmal Bang Raises Target Citing Attractive Risk-Reward
Shares of Federal Bank rose over 8.5%, most since October 22, 2021, to a 52-week high of Rs 129.75 apiece.
Nirmal Bang reiterated 'buy' and raised the target price to Rs 149, an implied return of 20.55% on Monday, citing attractive risk-reward, despite the 25% rise in the last six months. Nirmal Bang believes that the lender has the potential to deliver 1.2% RoA and 14% RoE over the next two to three years.
Nirmal Bang estimates Federal Bank's NIMs to expand 23bps up to FY2025E, due to larger share of retail loans and expects annual credit cost of 60bps over FY2024-25E, aided by improving asset quality. It also added that investors would be more comfortable if the bank can build a higher contingent buffer, even as it noted the corrective measures taken by the bank like lower corporate loan ticket sizes.
Trading volume is nearly seven times the 30-day average. The relative strength index is at 78, suggesting it may be overbought.
Of the 36 analysts tracking the company, 33 maintain 'buy', three suggest 'hold'. The return potential of the stock is 2%.
Source: Bloomberg, Brokerage note
SC Closes Adani Ports' Plea Against Disqualification For Bidding Process Of JLN Port Trust
Supreme Court closes Adani Port and Special Economic Zone Ltd.’s plea against disqualification for the bidding process of JLN port trust.
Adani port had appealed against the HC order which upheld the disqualification from the bid for maintenance and upgradation of the JLN container terminal in Navi Mumbai.
Supreme Court closed the case after saying that the issue related to Vizag port cannot be reason of disqualification from future bids.
Rupee Falls Against U.S. Dollar
Indian Rupee depreciated 7 paise to 79.87, during the session.
Source: Bloomberg
S&P Global India August Services PMI At 57.2 Vs 55.5 In July
Services PMI sees a rise in August.
Services PMI rises to 57.2 in August from 55.5 in July.
Source: S&P Global
India Bond Listing On Global Indices Unlikely In 2022: FE
New Delhi will not factor in any potential inflows from index inclusion when it finalizes its fiscal second-half borrowing later this month, the Financial Express reported, citing a source it didn’t name.
This indicates that the listing of Indian govt bonds in global indices is unlikely to take place in 2022, if not in FY23, the report said
Govt has been in discussions with overseas index operators and certain conditions need to be finalized, the report said
Source: Bloomberg
Reliance Power Jumps After Rs 1,200 Crore Debt Deal With Varde Partners
Shares of Reliance Power Ltd. jump as much as 8.5%, after the company and its unit signed a deal with Varde Partners to raise as much as Rs 1200 crore ($150 million) in debt.
Shares set for 6th day of advance
Trading volume 1.5x three- month, full-day average
The funds will be used to refinance existing debt of Reliance Power; drawdown pending finalization and execution of binding documents and approvals, the company said in an exchange filing
Stocks linked to Anil Ambani’s Reliance Group gain following the group firm’s debt deal
Reliance Infrastructure rises as much as 4.9%; Reliance Capital +6.7%; Reliance Naval +6.7%
Source: Bloomberg
Eleven Of The 12 Constituents Of Nifty Bank Index Advance
NDTV Hits 5% Upper Circuit For Eighth Day In A Row
Shares of New Delhi Television Ltd hit 5% upper circuit in intraday trade for the eighth day in a row, since August 23, the same day when Adani group announced plans to acquire 29.18% shareholding in the company and launch an open offer to buy an addition 26% stake in the company.
Trading volume is low, 0.1 times the 30-day average. The relative strength index of the stock is 92, suggesting it may be overbought.
Source: Bloomberg
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
Metal Stocks Lead The Gains
Paytm Falls Most In Nearly Six Weeks
Shares of One 97 Communications Ltd. fell over 6.3%, steepest decline in nearly six weeks to Rs 681 apiece.
Trading volume is twice the 30-day average.
This comes after raids by Enforcement Directorate at six premises of online payment gateways, including Razorpay, Paytm and Cashfree in Bengaluru, on Saturday. The raids concerned alleged irregularities in instant app-based loans controlled by Chinese persons, ED said in a statement.
Paytm, in an exchange filing, said that ED sought information regarding merchants to whom it provided payment processing solutions. It added that the merchants were independent entities and none of them were Paytm's group entities.
ED, after the raids, said it seized Rs 17 crore worth of funds kept in 'merchant IDs and bank accounts of Chinese persons-controlled entities'.
Of the 12 analysts tracking the company, six maintain 'buy', three suggest 'hold' and three recommend 'sell'. The return potential of the stock is 27.8%.
Source: Exchange filing, Bloomberg, PTI
Euro Slips To 20-Year Low
Euro slides to its weakest level in nearly 20 years, amid cut in Russia gas supply to Europe.
Source: Bloomberg
Opening Bell: Sensex, Nifty Open Higher; Hindalco, Tata Steel Advance
India's stock benchmarks opened higher, aided by gains in metal, telecom, consumer durables, power, industrials stocks.
The S&P BSE Sensex gained over 270 points (nearly 0.5%) to 59,078. The NSE Nifty 50 advanced by similar magnitude to 17,690.35. Today 30 of the Nifty 50 stocks rose while 20 fell. Hindalco, Tech Mahindra, JSW Steel, Tata Steel, Kotak Mahindra Bank were among the top gainers.
The S&P BSE MidCap almost mirrored its larger peers while SmallCap index outperformed Sensex, Nifty, rising 0.8%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with Metal gauge gaining over 1%.
The market breadth is skewed in the favour of bulls. About 2,029 stocks rose, 696 fell and 155 remained unchanged.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 3bps to 7.20%, at the open.
Source: Bloomberg
Rupee Little Changed Against U.S. Dollar
Indian currency fell 5 paise (0.07%) to 79.85, at the open.
Source: Bloomberg
Reliance Power To Raise Long Term Debt Of Up To Rs 1,200 Crore
Anil Ambani-led Reliance Power has signed an MoU with alternative investment firm Varde Partners for availing debt of up to Rs 1,200 crore.
The debt will be used for settlement, discharge and/or acquisition and restructuring of financial debt availed by Reliance Power.
Source: Exchange filing
Global Cues
U.S. Dollar Index at 109.95
U.S. 10-year bond yield at 3.41% on Friday
Brent crude up 1.6% to $94.52 per barrel
Nymex crude at $88.22 per barrel
SGX Nifty down 0.16% to 17,511 as of 6:13 a.m
Bitcoin down 0.01% to $19,900.2
Blue Jet Healthcare Files For IPO
Pharma and healthcare ingredient maker Blue Jet has filed its draft red herring prospectus for an IPO.
The IPO is a pure offer-for-sale to sell as many as 2.16 crore shares.
No new shares being issued in the IPO.
Source: Draft red herring prospectus
Trade Setup For Monday
Stocks To Watch
Wipro: The company has partnered with Cisco to accelerate cloud transformation for customers. The partnership will enable Wipro customers to deploy Wipro FullStride Cloud Service to enable a fully automated hybrid-cloud stack, reducing the implementation time and enhancing the user experience.
JSW Steel: Life Insurance Corporation increased its stake in the company from 5% to 7.01%.
GMR Infrastructure: The company approved raising of funds of up to Rs 6000 crore in one or more tranches through issue of securities including a Qualified Institutions Placement and/or foreign currency convertible bonds and/or any other securities.
Hindalco: Aluminium buyer Novelis excludes Russian metal in Supply deal.
Hindustan Aeronautics, L&T: Wins Rs 860 crore deal from NSIL to entirely build five PSLV rockets.
JSW Steel: LIC's holding in JSW Steel has risen to 7.01%.
SpiceJet: Gets up to three-month extension of time to hold AGM
Sensex, Nifty Set To Fall; Adani Ports, HAL, JSW Steel, Spicejet, Wipro In Focus
European equity futures tumbled and the euro fell Monday as the region’s worsening energy crisis added to concerns about a global economy already facing inflation, monetary policy risks.
The dollar was firm. Crude jumped past $88 a barrel ahead of an OPEC+ meeting on supply and as traders weighed the latest energy-sector twists.
At 7:05 am, the Singapore-traded SGX Nifty—an early barometer of India's benchmark Nifty 50—traded 0.24% lower at 17,498.50 points.
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