Sensex, Nifty Rise Aided By I.T., Auto, Realty, Consumer Durables' Stocks; FPIs Stay Net Buyers

India's stock benchmarks pared some of the gains, but still ended in the green, aided by gains in basic materials, information technology, realty, auto and consumer durables stocks.

The S&P BSE Sensex gained over 0.5% (322 points) to close at 60,115.13. This is the first time the 30-stock gauge closed above 60,000 in over three weeks since August 18. The NSE Nifty 50 added over 100 points to 17,936.35. The Nifty 50 came within 20 points of reclaiming 18,000 mark in today' session. Today 34 of Nifty 50 stocks rose while 16 fell. Adani Ports, Titan, Divi's Laboratories, Tech Mahindra and Axis Bank were among the top gainers.

The broader indices outperformed their larger peers with MidCap jumping 0.9% and SmallCap gauge gaining 1%. All 19 sectoral indices compiled by BSE advanced with Basic Materials, Information Technlogy, Utilities, Consumer Durables, Realty and Teck measures gaining over 1%.

The broader indices underperformed their larger peers. About 2,197 stocks rose, 1,387 fell and 175 remained unchanged.

Overseas investors remained net buyers for the fifth 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 bought equities worth Rs 2,049.65 crore today.

Domestic institutional investors too continued to stay net sellers and sold equities worth Rs 890.51 crore today.

Institutions have net bought Rs 4,926.99 crore worth of equities this month so far and have net sold Rs 28,556.09 crore worth of Indian equities till date in 2022.

• Yield on the 10-year bond rose 2bps to 7.14%.

Source: Bloomberg

Indian currency fell 13 paise to 79.72 during the session before reversing losses. The Rupee rose 12 paise to an intraday high of 79.47 before closing at 79.53, up 6 paise from Friday's close.

Source: Bloomberg

Shares of Fuel Retailers rose after Bloomberg reported that government is planning to pay about Rs 20,000 crore to oil companies toward LPG losses, citing people familiar with the matter.

Source: Bloomberg

Shares of Ramkrishna Forgings gained nearly 4% during the session. Trading volume is twice the 30-day average.

The company announced that it approved a fund raise of Rs 94.3 crore through preferential issue of 46 lakh warrants convertible to equivalent equity share of Rs 2 each at Rs 205 per warrant to promoters/non-promoters.

The company will get Rs 23.6 crore upon allotemen of these warrants, in 2022. The balance Rs 70.7 crore will be received within 18 months from date of allotment of warrants.

Of the five analysts tracking the company, four suggest 'buy' and one recommends 'sell'. The return potential of the stock is 5.5%.

Source: Exchange filing, Bloomberg

Shares of Nazara Technologies jumped over 7% and are on course to gain for third day.

The gaming and sports media platform jumped 11% on Friday as well. Trading volume is nearly five times the 30-day average. The relative strength index is 75, suggesting the stock may be overbought.

Of the 11 analysts tracking the company, nine maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 5.2%.

The rise comes after Google, in a support page announced plans to run a pilot to permit daily fantasy apps, rummy games in Play Store in India.

The one-year pilot will start from September 28 with India-incorporated firms required to submit an application form.

Daily Fantasy Sports are games in which contestants use knowledge of sports to select or manage rosters of simulated athletes/teams. The distribution of the app will be limited to India only.

Source: Bloomberg, Google Support Page

Shares of Zydus Lifesciences rose 2%, most in over two weeks.

• The company's U.S. subsidiary Zydus Pharma secured final approval from U.S. FDA to market Cariprazine Capsules, USP 1.5 mg, 3 mg, 4.5 mg and 6 mg.

• Zydus was among the initial applicants to submit a substantially complete ANDA and hence is eligible for 180 days of shared generic drug exclusivity for Cariprazine Capsules.

• The drug is indicated for the treatment of schizophrenia and acute treatment of manic or mixed episodes associated with bipolar I disorder. The capsules will be manufactured at Zydus' plant in Ahmedabad SEZ, India.

• The capsules had an annual sales of $2.39 billion in the U.S., according to IQVIA data in the 12 months ended July 2022.

• Of the 34 analysts tracking the company, 19 maintain 'buy', 11 suggest 'hold' and four recommend 'sell'. The return potential of the stock is 10.8%.

Source: Exchange filing, Bloomberg

• European markets advance ahead of preliminary euro zone unemployment data and GDP data for second quarter. Focus shifts to U.S. inflation data for August, scheduled to be released tomorrow.

Source: Bloomberg

• Yield on the 10-year bond rose 3bps to 7.14% during the session.

Source: Bloomberg

Indian currency fell 13 paise to 79.72 during the session. The Rupee pared those gains to 79.57 against the greenback.

Source: Bloomberg

Shares of Hindustan Aeronautics surged 6%, most in over a month, to a record Rs 2,579.95.

• The rise comes after Antique Stock Broking initiated coverage of the stock with a 'buy' recommendation. The target price is set at Rs 3,140, an implied return of 30%.

• Antique Stock Broking's target price on HAL's stock is the highest among all the nine analysts covering the stock.

• The brokerage cites the large order book (~ Rs 84,800 crore), India's quest to modernize armed forces and procurement of domestic defence products as positives. Antique Stock Broking expects success in procuring orders from friendly countries to boost growth outlook.

• HAL's position as India's largest defence PSU catering to aerospace business economy, government's intention to have 42 squadrons instead of the current 32,new generation fighters augured well, according to Antique Stock Broking. The brokerage expects HAL to place a pivoted role in development of indigeneous defence industry.

• Besides this, HAL is favourably placed to received an 18-aircraft order from Malaysia and LCA Tejas could help in scaling-up exports. The brokerage expects share of exports in sales to rise significantly from the current 1%.

• Antique Stock believes that HAL's stock will re-rate meaningfully due to strong order backlog, unprecedented order pipeline and expects growth to pick up from FY24.

• Trading volume is more than twice the 30-day average. The relative strength index is at 85, suggesting the stock may be overbought. HAL is on course to log gains for the 12th day.

• The relative strength index of the stock is 80, suggesting it may be overbought.

• All five analysts tracking the company maintain 'buy'. The return potential of the stock is -12.3%.

Source: Antique Stock Broking note, Bloomberg

• Air India is set to induct 5 Boeing wide-body and 25 Airbus narrow-body aircraft to its fleet.

• The inductions will begin in December and boost the airline’s fleet by 25%.

• The Boeings will be deployed on routes from Indian metro cities to the U.S. These aircraft will result in Air India offering premium economy haul flights for the first time.

Source: Press statement

India's stock benchmarks extended gains, trading near the day's high, led by a surge in IT, realty and consumer durable stocks.

The 30-stock gauge gained over 430 points, about 0.7%, to settle around 60,224.82. The Nifty 50 gained a similar magnitude and traded around 17,960. Today 40 of Nifty 50 stocks rose while 9 fell. One remained unchanged.

Adani Ports and Special Economic Zone Ltd., Tech Mahindra Ltd., Infosys Ltd., Axis Bank Ltd., Titan Ltd. were the top gainers. While, Coal India Ltd., Shree Cement Ltd., HDFC Ltd., IndusInd Bank Ltd., and Dr. Reddy’s Laboratories Ltd. were the top losers.

The broader indices outperformed larger peers with MidCap gauge gaining 0.9% and SmallCap measure jumping 1%.

All of the 19 sectoral indices compiled by BSE Ltd. advanced with I.T. index gaining 1.6%.

The market breadth is skewed in the favour of bulls. About 2,215 stocks rose, 1,208 fell and 195 remained unchanged.

Shares of Mahindra Lifespace Developers gained nearly 3% to a record high Rs 550.75 apiece. The stock is on course to gain for the sixth consecutive session.

The company is looking to acquire few land parcels this fiscal to build housing projects with sales potential of Rs 3,000 crore-Rs 4,000 crore, PTI reported on Sunday citing the company's MD and CEO Arvind Subramanian.

Mahindra Lifespace seeks to acquire new land parcels for business expansion in three focus cities, Mumbai Metropolitan Region, Pune, Bengaluru. The company will buy land parcels either through outright purchase or by forming joint development agreements (JDAs) with landowners.

The relative strength index of the stock is 80, suggesting it may be overbought.

All five analysts tracking the company maintain 'buy'. The return potential of the stock is -12.3%.

Source: PTI, Bloomberg

Shares of Tata Consultancy Services gained over 1.6% and are on course to gain for fourth day in a row, after the firm said it has “successfully completed” the first phase of the cloud transformation for Penumbra.

TCS has completed the first stage of digital transformation for the U.S.-based medical devices company by reimagining its order management, finance and procurement functions with a new digital core.

It also integrated internal and external data sources to enable real-time insights for better decision making and simplified self-service.

Of the 50 analysts tracking the company, 24 maintain 'buy', 15 suggest 'hold' and 11 recommend 'sell'. The return potential of the stock is 6.3%.

Source: Bloomberg, Exchange filing

Shares of Happiest Minds rose over 4.3%, the most in over three weeks. The rise comes after the company announcing the expansion of its Noida facility (“Smiles 5”) increasing its delivery capacity and leveraging the area’s diverse high-technology talent pool.

• With the additional facility, the company will have a capacity of 450 in the NCR region.

• All three analysts tracking the company maintain 'buy'. The return potential of the stock is 3.1%.

Source: Bloomberg, Exchange Filing

Shares of ONGC rose during the session, after signing six contracts for Discovered Small Fields and two contracts under CBM bid round-2021.

• Of the six contracts for Discovered Small Fields, three were for fields in Arabian Sea and three for fields in Bay of Bengal.

• Of the six contract, four contracts have been given for ONGC as sole bidder while two contracts were in partnership with Indian Oil.

• ONGC also signed to contracts for fields under Special CBM Bid round-2021 blocks in Jharkhand and Madhya Pradesh.

• For the two CBM blocks, the total investment commitment is to the tune of $5.94 million, while $1894.5 million of investment is planned towards development in the six DSF-III blocks.

• Of the 28 analysts tracking the company, 18 maintain 'buy', seven suggest 'hold' and three recommend 'sell'. The return potential of the stock is 28.4%.

Source: Exchange Filing, Bloomberg

Shares of Ajanta Pharma declined nearly 2.5% after U.S.FDA issued Form 483 with two procedural observations post inspection of the drug maker’s Dahej facility.

The U.S. drug regulator inspected the unit from Sept. 5 to Sept. 9.

Of the 15 analysts tracking the company, 14 maintain 'buy', one suggests 'hold'. The return potential of the stock is 10%

Source: Bloomberg, NSE

Shares of Anupam Rasayan fell nearly 5% during the session, most in over five weeks since August 3.

The decline comes after the compny informed exchanges of a fire incident at its plant in Sachin GIDC on September 10. The fire, wich took place in one of manufacturing blocks of the factory, was brought under control in an hour. The cause of the incident is being investigated. Four fatalities have been reported, 20 people were injured from the fire.

Anupam Rasayan said that the company is in the process of assessing damage. Anupam Rasayan also added that it is covered for loss of assets and loss of profits under insurance.

Trading volume is 15 times the 30-dy average. Of the eight analysts tracking the company, seven maintain 'buy', one suggests 'sell'. The return potential of the stock is 14.7%.

Source: Exchange filing, Bloomberg

Shares of Engineers India Ltd. rose over 4.3%. Trading volume was 2.6 times the 30-day average. The 50-day moving average crossed above the 200-day moving average, forming the golden cross pattern. Of the 11 analysts tracking the company, 10 maintain 'buy' and one recommends 'sell'.

The return potential of the stock is 28%.

ONGC has entrusted the project for Restoration of Gas Terminal, Phase-I (Part-A) at ONGC, Hazira Plant to be executed on EPC reimbursable basis (Open Book Estimate (OBE) model) to Engineers India. The total estimated order value is Rs 249 crore with a project completion schedule of about 33 months.

Source: Bloomberg, Exchange filing

Shares of Computer Age Management Services jumped nearly 3.5% and are on course to gain for fourth day.

• Trading volume is nearly twice the 30-day average. The relative strength index is at 71, suggesting the stock may be overbought.

• The rise comes after Motilal Oswal initiated coverage of the stock with a 'buy' recommendation. The target price has been set at Rs 3,000, an implied return of 18.61%.

• Motilal Oswal said that CAMS is prepared to succeed in conjunct opportunities and termed the company as a direct play on the growing financialisation of savings in India.

• The brokerage firm identified addition of new customers, rising market share of incumbent customers as key reasons for rising prominence of the company. It added that with rising MF penetration in India, CAMS could log 15% CAGR in AUM in the coming decade.

• CAMS also has the potential to revolutionise lending and financial planning, the way UPI did for payments, according to Motilal Oswal while valuing the company at a premium to AMCs (14-25x one-year forward P/E), due to duopoly of RTA (Registrar and Transfer Agents) industry.

• Of the nine analysts tracking the company, seven maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 6.3%. Motilal Oswal's target price of Rs 3,000 is the joint most among the brokerages covering the stock. Yes Research also maintains Rs 3,000 target price on the stock.

Source: Bloomberg, Motilal Oswal note

Shares of KEC International rose 4.2%, most in over eight weeks. Trading volume is nearly seven times the 30-day average.

The rise comes after Gujarat Industries Power awarded an EPC contract to KEC International worth Rs 244 crore. The project pertains to pooling substation 400/33 KV, 1200 MW of Solar/Wind/Hybrid renewable energy part of 2,375 MW capacity at Great Rann, Kutch, Gujarat.

Of the 27 analysts tracking the company, 18 maintain 'buy', six suggest 'hold' and three recommend 'sell'. The return potential of the stock is 13.1%.

Source: Bloomberg

Shares of DB Realty were locked in 5% upper circuit after report that Adani Realty is in final stage of merger talks with DB Realty.

• The Hindu BusinessLine, on Sunday, reported that Adani Realty is in advanced talks with Mumbai-based DB Realty for a potential merger deal. Post the merger, the combined entity would be renamed to Adani Realty, the report said citing sources. The report added that Adani may infuse more funds into DB Realty, which would issue fresh equity to new investor. DB Realty needs major funds for its high-end projects, making Adani Realty a suitor, the report said citing sources.

• Trading volume of the stock is 0.3 times the 30-day average. The relative strength index of the stock is 77, suggesting it may be overbought.

Source: Bloomberg, The Hindu Businessline.

Shares of PVR jumped nearly 5%, most in over weeks. The stock lost over 5% on Friday.

Trading volume is nearly seven times the 30-day average.

• The rise comes after the company's CEO clarified that PVR Cinemas gained over Rs 8 crore net box office from first day of the new Hindi movie Bramhastra.

• The CEO also said that the collections are likely to be encouraging. He also added that PVR is likely to gain with several movies due to be released over the next three months.

• Of the 31 analysts tracking the company, 27 maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is 15.9%.

• Shares of peer Inox Leisure jumped over 5.5% in intraday trade after losing 5% on Friday.

• Edelweiss, in a note, cited strong marketing, differentiated content, pent up demand and strong star cast are reasons for the movie to outperform expectations over the first three days despite poor reviews.

Source: PVR CEO Twitter handle, Bloomberg

India's stock benchmarks opened higher, aided by broad based gains led to I.T., auto, metal, realty stocks

The S&P BSE Sensex gained 0.5% (nearly 300 points) to 60,079.41. The NSE Nifty 50 advanced by similar magnitude to 17,911.95. Today 43 of Nifty 50 stocks advanced, seven fell. Tech Mahindra, Tata Steel, Adani Ports, Hindalco, Infosys are among the top gainers.

The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, gaining 0.67%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with IT index jumping 1.3%.

The market breadth is skewed in the favour of bulls. About 2,107 stocks rose, 715 fell and 162 remained unchanged.

• Yield on the 10-year bond rose 1bp to 7.12%, at the open.

Source: Bloomberg

• Indian currency depreciated 9 paise to 79.68, at the open.

Source: Bloomberg

• Mobility technology company Magna to invest $77 million in Bengaluru-based Yulu.

• Magna will have a stake in the company and will hold a seat on Yulu’s board of directors.

• The two companies have also established a new battery swapping entity named ‘Yulu Energy’ as part of the deal.

Source: Press release

• Oberoi Realty: The company has approved scheme of amalgamation its four subsidiary companies - Oberoi Constructions, Oberoi Mall, Evenstar Hotels and Incline Realty. The rationale for the move was the similar nature of business of the companies and creating a simplified structure with greater management focus.

• SpiceJet: The company has appointed Ashish Kumar as its new Chief Financial Officer. Kumar has served as Vice President (Head) - Corporate Finance at Interglobe Enterprises since January 2019. He also served as Chief Financial Officer at Interglobe Hotels from 2014 to 2018.

• KEC International/Gujarat Industries Power: Gujarat Industries Power awarded an EPC Contract to KEC International at the cost of Rs 244 crores for Pooling Sub-station 400/33 KV, 1200 MW of Solar / Wind / Hybrid RE Park of 2375 MW capacity at Great Rann of Kutch area, Gujarat.

• Bank of Baroda: The bank hiked the Marginal Cost of Funds Based Lending Rate from 5-15 bps across tenors with effect from Sept. 12

• Indian Overseas Bank: The lender has hiked MCLR by 10 basis points across tenors, with effect from Sept. 10.

• ACC, Ambuja Cements: Billionaire Adani To Join Boards Of Cement Makers, Reports Mint

• Apollo Tyres: Reinstated 'Outperform' At Haitong International

• HDFC Life: BNP Paribas initiated coverage with 'buy'; price target set at Rs 800.

• RIL: To buy SPL, SPTex, Polyester businesses for $200 million.

• Tata Steel: Board meet on September 14 to consider debentures issuance

• U.S. Dollar Index at 108.86

• U.S. 10-year bond yield at 3.59% on Monday

• Brent crude down 0.75% to $92.14 per barrel

• Nymex crude at $86 per barrel

• SGX Nifty up 0.16% to 17,870.5 as of 6:10 a.m

• Bitcoin up 0.03% to $21,716.6

Asian shares rose after positive close on Wall Street on Friday, while the euro advanced as investors expected Europe to follow the Federal Reserve with more interest-rate hikes.

Japanese and Australian equities gained about 1% and U.S. futures advanced after the S&P 500 and Nasdaq 100 snapped three-week losing streaks on Friday. Markets in China, Hong Kong and South Korea are closed for holidays Monday.

At 6:30 a.m., the Singapore-traded SGX Nifty--an early barometer of India's benchmark Nifty 50--traded 0.16% higher at 17,870.50 points.

West Texas Intermediate crude slipped 0.9% to $86.02 a barrel.