Sensex, Nifty Snap Three-Day Losing Streak Aided By FMCG, Auto, Financials Stocks; FPIs Turn Net Buyers

India's stock benchmarks recovered from a volatile start to log gains and snap a three-day losing streak, aided by FMCG, Auto, Financials stocks, amid caution in global equities ahead of U.S. Federal Reserve's two-day FOMC meet, scheduled to start on Tuesday.

The Sensex gained 300 points(0.51%) to 59,141.23. The Nifty added 0.5% to 17.622.25. Today 34 of Nifty 50 stocks advanced while 16 fell. Mahindra & Mahindra, Bajaj Finance, SBI Life Insurance, Adani Ports and SEZ, HUL were among the top gainers.

The broader indices underperformed their larger peers with both the smallcap and midcap measures losing nearly 0.2%. Ten of the 19 sectoral indices compiled by BSE advanced with FMCG gauge rising 1%.

On the flipside, telecom, metal gauges fell over 1%.

The market breadth is skewed in the favour of bears. About 1,723 stocks rose, 1,890 fell and 136 remained unchanged.

Overseas investors turned net buyers after three days of net selling on Monday. They net sold the highest worth of Indian equities in 13 weeks on Friday.

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 312.31 crore today.

Domestic institutional investors, on the contrary turned net sellers and net sold equities worth Rs 94.68 crore today.

Institutions have net sold Rs 872.92 crore worth of equities this month so far and Rs 34,356 crore worth of Indian equities till date in 2022

Yield on the 10-year bond closed 7.24%, up 1bp from Friday close of 7.23%.

Source: Bloomberg

• Rupee appreciated 16 paise to 79.59, during the session.

• The Indian currency pared the gains and closed at 79.77 against the greenback.

Source: Bloomberg

Shares of Can Fin Homes fell after the company reported ransomware attack on its website last week.

The shares lost nearly 9%. On Friday, the stock shed 4.4%.

The company had said that the issue was resolved on September 16.

Source: Exchange filing, Bloomberg

Shares of Indus Towers lost over 3.25%, most in over a month since August 10.

The fall comes after the company informed exchanges that the MD and CEO of the company Bimal Dayal's resignation from the position became effect on September 17.

Tejinder Kalra, the Chief Operating Officer and Vikas Poddar, the Chief Financial Officer will be responsible for functioning of the company till the vacancy for MD & CEO position gets filled.

Trading volume is 0.6 times the 30-day average. Of the 26 analysts tracking the company, 10 maintain 'buy', nine suggest 'hold' and six recommend 'sell'. The return potential of the stock is 11.2%.

Source: Bloomberg, Exchange filing

• Dish TV has 4.81 million shares, aggregating to 0.3% equity change hands in two large trades.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Chairman Jawahar Lal Goel has tendered his resignation from Dish TV’s board.

• He shall cease to be chairman at close of business hours on Sept. 19.

• Goel had agreed to step down from the board on Sept. 1.

Source: Exchange filing

Shares of Indo National Ltd. jumped 20%, after subsidiary Kineco bagged a Rs 113 crore order for supply and installation of modular interiors for Vande Bharat semi-high speed trains (originally called Train 18), from the Integral Coach Factory, Chennai.

Earlier this year, Kineco was also awarded with an order for 68 Train Fronts of the same Vande Bharat Trains.

Kineco is a composites manufacturer. The company’s IRIS certified Railway Division has been supplying products to Indian Railways for more than fifteen years. The product portfolio includes rail coach interiors, toilet modules, aerodynamic front ends and driver cab interiors, seating systems.

Goa-based Kineco is jointly owned by its founder-promoter Shekhar Sardessai, who also serves as Executuve Vice-Chairman and Managing Director of Kineco and Indo National Ltd.

Indo National is dry cell batteries maker under the brand name 'NIPPO' and is a majority investor in Kineco.

Source: Exchange Filing, Kinecogroup.com, Bloomberg

Shares of Mahindra Holidays & Resorts India Ltd rose over 3%.

Trading volume is 0.7 times the 30-day average.

The company announced post-markets Friday that it has subscribed to additional equity shares of Great Rocksport Private Ltd.

Mahindra Holidays had informed exchanges on April 16 that it had agreed to subscribe to additional 4,88,321 shares of Great Rocksport in installments for total cash consideration of Rs 12 crore

Out of which, Mahindra Holiday had subscribed to 1,62,774 shares of Great Rocksport for little over Rs 4 crore on April 16 itself.

The company subscribed to balance Rs 3,25,547 shares for Rs 7.99 crore on Thursday (September 15). Mahindra Holidays now holds 23.42% of paid-up share capital of Rocksport.

Rocksport is engaged in the business of undertaking and providing outdoor entertainment, adventure programs, educational adventure tours and retail branded adventure products in India.

Turnover of Great Rocksport Private Ltd for the financial year ended March 31, 2022 was Rs 16.53 crore.

Mahindra Holidays expects the investment in Rocksport to increase customer engagement avenues for the company. "It is expected that there will be cross-selling of products by both parties for their growth and benefits", the company said in an exchange filing.

Of the three analysts tracking the company, two maintain 'buy', one suggests 'hold'. The return potential of the stock is 2.6%.

Source: Exchange Filing, Bloomberg

European markets opened lower ahead of two-day U.S. Federal Reserve meeting that begins tomorrow. FTSE 100 is closed today to mark the funeral of Queen Elizabeth II.

Focus also shifts to construction output data for the euro zone, which is scheduled to be released today.

Source: Bloomberg

Shares of rice exporting firms like LT Foods, KRBL and Chaman Lal Setia advanced.

The rise comes after Food Secretary Sudhanshu Pandey ruled out further curbs on rice exports. At a briefing, Sudharshu Pandey also added that India would approve 2022-23 sugar export quota very soon and take steps against wheat hoarders.

Source: Bloomberg

Shares of Granules rose nearly 3.5%. The rise comes after the company decided to buyback fully paid-up equity shares of face value Rs 1 each, through the “ Tender Offer” route.

The buyback offer will open on September 27 and close on October 11. The company will buy back shares worth up to Rs 250 crore and the buyback price has been fixed at Rs 400 per share.

Granules India Ltd founded in 1984, manufactures several off- patent drugs, including Paracetamol, Ibuprofen, Metformin and Guaifenesin.

Trading volume is more than thrice the 30-day average. Of the eight analysts tracking the company, seven maintain 'buy' and one recommends 'hold'. The return potential of the stock is 4.8%.

Source: Exchange Filing, Bloomberg

• Indian currency appreciated 16 paise to 79.59 during the session.

• The Rupee almost erased all gains to 79.71 against the greenback.

Source: Bloomberg

Shares of Tata Consultancy Services rose over 1%, most in a week and are on course to snap a four-day losing streak.

The stock lost over 7% in the last four days.

The company announced that Israel OFEK Credit Union has selected TCS' Banking Services Bureau to aid in its growth and digital transformation goals.

OFEK was formed in 2012, to enable households and small businesses in Israel with easy access to credit through peer-to-peer lending. TCS will utilise its market ready banking and securities solution and APIs delivered on SaaS model, to assist OFEK in building a comprehensive digital financial offering to its customers, TCS said in an exchange filing.

Of the 50 analysts tracking the company, 23 maintain 'buy', 15 suggest 'hold' and 12 recommend 'sell'. The return potential of the stock is 13.2%.

Source: Bloomberg, Exchange filing

India's stock benchmarks shook off a volatile start and advanced, as gains in banking, information technology, energy and fmcg stocks offset losses in cpial goods, telecom, consumer durables and realty stocks.

The Sensex gained nearly 300 points to 59,145.85 on the BSE. The Nifty 50 rose 0.54% to 17,625.15. Among Nifty 50 constituents, 33 stocks rose while 17 fell. Mahindra & Mahindra Ltd, Bajaj Finance Ltd, Adani Ports Ltd, SBI Life Insurance Company Ltd and State bank of India were the top gainers. Tata Motors Ltd, Cipla Ltd, Tata Steel Ltd, Asian Paints Ltd and Britannia Industries Ltd were the top losers.

The broader indices underperformed their larger peers with MidCap losing 0.3% and SmallCap rising 0.2%. Ten of the 19 sectoral indices compiled by BSE declined.

The market breadth is skewed in the favour of bulls. About 1,771 stocks rose, 1,724 fell and 135 remained unchanged.

Shares of Bajaj Finance rose 3.44%, most in nearly three weeks since August 30.

Trading volume is 1.5 times the 30-day average.

The rise comes after Jefferies raised target price of Bajaj Finance's stock to Rs 8000 from Rs 7300 (implied upside of 9.98%). Jefferies has reiterated 'hold' on the stock. Jefferies believes that Bajaj Finance has the potential and a shot at becoming the first NBFC in India to launch a credit card, provided the Reserve Bank of India gave its approval.

India has 80 million credit cards and is underpenetrated. If Bajaj Finance gets nod to foray into credit cards space, it would leverage its network, merchant relationships and customers. Such a foray would enable Bajaj Finance to take credit card to deeper markets than the top-100 towns and likely lead to profit of Rs 900 crore-Rs 1,700 crore in three years, according to Jefferies.

The global brokerage firm noted the company's outperformance over its peers, on both growth and profitability and raised earnings marginally. Jefferies sees 28% CAGR in profit for Bajaj Finance over FY23-25.

Of the 31 analysts tracking the company, 20 maintain 'buy', six suggest 'hold' and five recommend 'sell'. The return potential of the stock is 2.3%.

Source: Jefferies note, Bloomberg

• E-commerce enabler DotPe has raised $58 million (around Rs 460 crore) in a series B funding round led by Temasek.

• The round saw participation from existing investors PayU and InfoEdge Ventures. Mitsubishi and Naya Capital join as new investors.

• DotPe has brands such as McDonald's, 24 Seven and Taco Bell in its portfolio.

Source: Press release

Shares of ONGC gained over 2% while RIL rose nearly 1% in intraday trade. The stocks have erased gains in intraday trade

This comes after government reduced windfall tax on domestic crude and ATF exports, on Friday, according to gazette notification dated September 16. The notification came into force from Saturday.

The windfall tax on domestic crude was slashed to Rs 10,500 per tonne from Rs 13,300 per tonne. Tax on ATF exports was cut to Rs 8.50 per litre from Rs 9 per litre.

Cess on diesel export was slashed to Rs 6.50 per litre from Rs 13.5.

Source: Gazette notification, Bloomberg

Shares of Indoco Remedies gained over 4.2%, most in over three months since June 6.

Trading volume is 2.5 times the 30-day average.

The company's clinical research organisation, AnaCipher, located in Hyderabad, was inspected by U.S. FDA from September 12 to September 16,

The clinical phase of inspection covered three BA/BE (Bioavailability/Bioequivalence) studies submitted by clients to the U.S.FDA. The inspection was successfully concluded with no Form 483s, the company said in an exchange filing on Monday.

"This is the seventh successive U.S.FDA inspection with zero 483s for AnaCipher CRO", said Aditi Kare Panandikar, Managing Director, Indoco Remedies.

Of the nine analysts tracking the company, eight maintain 'buy' and one suggests 'hold'. The return potential of the stock is 32.9%.

Source: Exchange filing, Bloomberg

Shares of logistics firms rose after the government introduced National Logistics Policy on Saturday.

The policy intends to bring down cost of logistics to single digit from 13-14% of GDP currently and aims to form technology-based, cost-efficient, sustainable logistics ecosystem.

Shares of Container Corp, VRL Logistics, Aegis Logistics, Mahindra Logistics, Snowman Logistics rose at the open. Aegis Logistics, Mahindra Logistics and Snowman Logistics have pared the early gains in intraday trade.

Source: Bloomberg

• PNB has 1.7 million shares change hands in a large trade.

• ITC has 2.06 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Schaeffler India lost nearly 6%. This follows a 5% fall on Friday.

Trading volume is 2.5 times the 30-day average.

The decline comes Kotak Institutional Equities downgraded the stock to 'sell' from 'add', and maintained target price of Rs 2,600 (implied return of -23.98%).

The brokerage firm, in a note on Monday, observed that the strong medium-term growth opportunities are priced in. The company's growth potential in export market remained optimistic, but achieving 19% domestic revenue CAGR over Calendar Year 2021-35E will be challenge, according to Kotak Institutional Equities. Schaeffler India exports industrial bearings to its parent entities.

Strong focus on product innovations (157 patent applications in five years), introduction of localised products are likely to aid business growth in export geographies. Besides this, favourable cost structure in India, the parent company's diversification supplier base from China are other positives, Kotak Institutional Equities said.

Of the eight analysts tracking the company, four maintain 'buy', two recommend 'hold' and two suggest 'sell'. The return potential of the stock is -18.5%.

Source: Bloomberg, Kotak Institutional Equities note

Shares of Welspun Corp rose over 4.6%, after company announced that it secured an order of Carbon Capture Pipeline projects in the United States.

The order pertains to the supply of 785 miles (1,256 km) or 100,000 MT (approximately) of High Frequency Induction Welding (HFIW) pipes, to be used for transporting captured Carbon dioxide.

The pipes for this order will be produced from Welspun’s Little Rock plant in the U.S. and the same will be executed in fiscal year 2023-24.

“This large strategic order once again reflects our strong culture of engineering the excellence and the trust customers have on our capabilities to execute large scale projects, both in terms of supplying impeccable quality, and for on-time deliveries”, company said in an exchange filing.

Trading volume is thrice te 30-day average. Of the five analysts tracking the company, three maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 4.2%.

Source: Exchange Filing, Bloomberg

• Oravel Stays, which does business as Oyo Rooms, reported losses attributable to shareholders of Rs 1,892.1 crore in FY22, compared to losses of Rs 3,374 crore in FY21.

• The company had filed its papers with SEBI for an IPO in 2020.

• The company is looking at an IPO of Rs 8,430 crore, with a fresh issue of shares worth Rs 7,000 crore and an offer for sale of Rs 1,430 crore.

Source: Draft Red Herring Prospectus

Shares of Inox Wind rose 8.55%, most in over two weeks since September 1.

• Trading volume is nearly thrice the 30-day average.

• The rise comes after PTI reported that Inox Green planned to launch Rs 740 crore IPO in the next 30-45 days, citing the company's CEO Kailash Tarachandani.

• Inox Green is a subsidiary of Inox Wind.

• This is the company's second attempt to public. Inox Green had fled the DRHP for its proposed IPO eight months ago in February. But the draft offer documents were withdrawn in April.

Source: Bloomberg, PTI

Adani Group targets to expand cement making capacity to 140 million tonnes in five years, Chairman Gautam Adani said in a speech on September 17.

Adani Group is the second-biggest cement maker after taking over Ambuja Cements and ACC.

Source: Gautam Adani's Address at an Event on September 17

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.

India's stock benchmarks opened lower, dragged by losses in auto, banking stocks. Energy, oil and gas, power, utilities' stocks gained.

The S&P BSE Sensex fell nearly 100 points (0.16%) to 58,747.31, at the open , before paring early losses. The NSE Nifty 50 was little changed at 17,523.90. Nineteen of Nifty 50 stocks rose, one was unchanged and 30 fell.

Bajaj Finserv, ONGC, Infosys, SBI Life and HDFC Life are the top Nifty gainers.

The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, gaining 0.37%. Ten of the 19 sectoral indices compiled by BSE Ltd. declined, with S&P BSE Consumer Durables and Healthcare losing nearly 1%.

The market breadth is skewed in the favour of bulls. About 1,557 stocks rose, 1,127 fell and 131 remained unchanged.

• Indian currency rose 7 paise to 79.68, at the open

Source: Bloomberg

Yield on the 10-year bond fell 2bps to 7.21%, at the open.

Source: Bloomberg

Shares of companies linked to logistics sector will be in focus after government introduced national policy to reduce transport costs.

Policy intends to bring down cost of logistics to single digit from 13-14% of GDP currently.

In Focus: Container Corp, Gateway Distriparks, VRL Logistics, Aegis Logistics, TCI Express, Mahindra Logistics, Snowman Logistics

Source: Bloomberg

• U.S. Dollar Index at 109.57

• U.S. 10-year bond yield at 3.45% on Friday

• Brent crude up 0.97% to $92.24 per barrel

• Nymex crude at $85.92 per barrel

• SGX Nifty up 0.24% to 17,606 as of 6:05 a.m

• Bitcoin down 1.2% to $19,486

• ACC/Adani Enterprises/Ambuja Cements: Adani Enterprises has completed the acquisition of ACC and Ambuja Cements Ltd. and reconstituted their boards, with billionaire Gautam Adani's son -- Karan Adani -- at the helm. Ambuja Cements also plans to raise Rs 20,000 crore via convertible debentures.

• ONGC/Reliance Industries/Vedanta: India has reduced windfall tax on domestically produced crude oil as well as cut export duty on diesel and aviation turbine fuel. 

• HDFC Life Insurance: National Company Law Tribunal has sanctioned the scheme of amalgamation between Exide Life Insurance and HDFC Life Insurance.

• GIC of India: Madhulika Bhaskar has taken charge as general manager of the insurer after Girija Subramanian was relieved from the post to assume her duties as chairman-cum-managing director of Agriculture Insurance Company of India. 

• Maruti Suzuki: India's largest carmaker has recalled 5,002 units of its Super Carry LCV to fix potential issues with a bolt attached to seat belt buckle bracket of co-driver seat.

• Zomato: Blinkit has partnered with Indian Apple reseller Unicorn for quick deliveries of Apple iPhones and accessories. The service will be available in Delhi and Mumbai for now. 

• Shree Renuka Sugars: The company expanded capacity for ethanol production, from 720 KLPD to 1250 KLPD and is expected to go on stream by December 2022.

• AIA Engineering/SAL Steels: SAL Steels has entered into supply agreement for three years with AIA Engineering for supply of Ferro Chrome to AIA on non-exclusive basis.

• Mahindra & Mahindra: Ontario Teachers’, one of the world’s largest pension plans, will acquire a 30% stake in Mahindra Susten at an equity value of Rs 2,371 crore.

Investors will head into the week fearing more pain after India's stock benchmarks logged their worst week since the week-ended June 17, 2022, predominantly due to sharp slide on Friday.

The indices tracked a drop in global equities, as the U.S. indices also fell to the worst week in months. Investors will keenly track the upcoming U.S. Federal Reserve monetary policy meeting, with another aggressive rate hike expected.

Closer home, the markets will also gauge RBI's September policy. The rupee also fell this week, ending at 79.74 on Friday.

At 6:10 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.24% to 17,606 points.