Sensex, Nifty Close Little Changed In Volatile Session - Energy, IT Stocks Gain; FPIs Stay Net Sellers

India's stock benchmarks swung between gains and losses for the most part of the session before closing little changed, as rise in energy, oil & gas and information technology stocks were offset by fall in metals, capital goods stocks.

The Sensex closed 38 points (0.07%) lower at 57,107.52. The 30-stock gauge traded in an over 750 point range between 57,704.57 and 56,950.52 in a volatile session.

The Nifty 50 closed 9 points lower at 17,007.40. Today 27 of Nifty 50 stocks rose, 23 fell. Cipla, Tata Consumer, IndusInd Bank, Shree Cement, Power Grid were the top gainers.

Hero MotoCorp, Adani Ports, Tata Steel, Titan, JSW Steel were the top laggards.

The Midcap index almost mirrored Sensex and Nifty. The SmallCap index outperformed its larger peers, rising 0.5%. Eleven of the 19 sectoral indices compiled by BSE declined with Bankex, Metal gauges losing over 0.75%. On the flipside, Oil & Gas measured gained over 1.2%.

The market breadth was skewed in the favour of bulls. About 1,887 stocks rose, 1,518 fell and 135 remained unchanged.

Overseas investors remained net sellers for the fifth day in a row, on Tuesday.

As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 2,823.96 crore today.

On the contrary, Domestic institutional investors remained net buyers for the sixth straight day and bought equities worth Rs 3,504.76 crore today.

Institutions have net sold Rs 5,357.66 crore worth of equities this month so far and Rs 38,840.74 crore worth of Indian equities till date in 2022.

Yield on the 10-year bond fell 9bps, most in over two weeks since September 8, to 7.27% during the session.

The 10-year bond yield trimmed some of the losses to close at 7.29%.

Source: Bloomberg

Indian currency rose 33 paise to 81.29 against the U.S. dollar. The Rupee erased gains to close at 81.58, just 8 paise shy of record low.

Source: Bloomberg

Shares of Mahindra CIE Automotive jumped over 7.7%, most in nearly two weeks since September 15.

About 8.44 shares of the company, aggregating to 2.2% of equity, changed hands in two large trades. Buyers, sellers are not known immediately.

Trading volume is thrice the 30-day average. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum. Of the six analysts tracking the company, five maintain 'buy' and one suggests 'sell'. The return potential of the stock is 10.4%.

Source: Bloomberg

• Yield on the 10-year bond fell 9bps to 7.27%, during the session. The 10-year yield pared some of the losses to 7.32% amid report that India's inclusion into JPMorgan emerging market global index is likely to be pushed back to next year.

• The 10-year bond yield rose 2bps at the open.

Source: Bloomberg

Rupee rose 33 paise to 81.29 against the dollar, during the session.

The Indian currency erased all the gains to 81.64 against the greenback, just two paise shy off record low.

Source: Bloomberg

Shares of Exide Industries reversed 1% losses and gained over 2.5% and are on course to snap a four-day losing streak. This is the most the stock has gained in over two weeks.

The rise comes after the company said it began work on setting up India's first multi-gigawatt hour Li-on cell manufacturing facility in Bengaluru.

Today, the company announced formal start of construction of the facility in an event in which the state Chief Minister and key representatives participated

Exide Industries' proposed facility will be spread over 80 acres of land and will produce leading lithium-ion batters to suit EV and Industrial segment needs.

The company entered into a multi-year technical collaboration agreement with SVOLT Energy Technology, a global tech firm that makes and develops lithium-ion batteries and battery systems. SVOLT will support Exide Industries in setting up the plant on a turnkey basis, besides providing technological assistance.

The first phase of this facility is expected to be operation by end of 2024.

Of the 23 analysts tracking the company, 18 maintain 'buy', four suggest 'hold' and one recommends 'sell'. The return potential of the stock is 26.4%.

Source: Bloomberg, Exchange filing

European markets advance. Auto stocks gain the most. British Pound recovers after slipping to record low $1.04 on Monday.

Source: Bloomberg

Shares of Amara Raja Batteries rose 2%, most in a week and are on course to snap a two-day losing streak. The stock lost nearly 6% in two days ahead of today's session.

Of the 19 analysts tracking the company, eight maintain 'buy', eight suggest 'hold' and three recommend 'sell'. The return potential of the stock is 14.4%.

The uptick comes after ICICIdirect upgraded the stock to 'hold' from 'reduce' and raised target price to Rs 500 from Rs 475 (implied upside of 2.46%) on Tuesday. Motilal Oswal reiterated 'buy' and maintained target at Rs 555 (implied upside of 13.87%) today while JPMorgan retained 'neutral' and Axis Research reiterated 'reduce' on Monday.

ICICI Direct said that the company is part of a duopolistic organised Indian lead acid battery market with presence in automotive and industrial battery space

The brokerage termed the acquisition of plastic components business of Mangal Industries through a share swap as a fair transaction from minority shareholders' perspective and expected the decision to be positive for the company's financials.

Mangal Industries share holders will get 65 shares of Amara Raja for every 74 equity shares held in MIL.

ICICI Direct upgraded the stock to 'hold' due to margin accretive nature the acquisition and awaited further affirmative actions in the Li-On battery space before turning decisively positive on the company.

Axis Capital termed that potential synergies and rationale for timing of the transaction 'unclear' and added that long-term business concerns with respect to Lithium-ion capabilities continued to persist. The brokerage cut FY23E EBITDA by 8% and revised Target price to Rs 450 from Rs 600.

Source: Bloomberg, Brokerage notes

Shares of HFCL Ltd. gained over 3.5%, most in nearly a week. The stock is on course to snap a three-day losing streak.

Trading volume is 0.7 times the 30-day average.

The uptick in share price comes after the company received purchase orders aggregating to Rs 202.6 crore. This include orders of Rs 167.60 crore (including applicable GST) from Reliance Retail, Reliance Projects & Property Management Services for supply of optical fibre cables and another order worth Rs 35 crore from an overseas customer for supply of various types of optical fiber cables and related accessories. The orders are to be executed by March 2023.

Source: Exchange filing, Bloomberg

India's stock benchmarks erased most of the intraday gains, but still advanced, as gains in energy, information technology, telecom, oil & gas stocks offset losses in metal, auto, banking stocks.

The Sensex gained nearly 100 points (0.17%) to 57,240. The Nifty 50 advanced 0.11% to 17,034.90. Both the gauges rose 1% in intraday trade before paring the gains.

Today 28 of Nifty 50 stocks rose while 22 fell. BPCL, Shree Cement, IndusInd Bank, Power Grid, ONGC are among the top gainers. Hero Motocorp, Tata Steel, Titan, Bajaj Auto, Apollo Hospitals are the top laggards.

The MidCap index underperformed its larger peers losing 0.2% while SmallCap gauge almost mirrored Sensex and Nifty. Ten of the 19 sectoral indices compiled by BSE Ltd. declined with Metal index losing 1.1%. On the flipside, Oil & Gas and Energy measures gaining over 1%.

The market breadth is skewed in the favour of bulls. About 1,738 stocks rose, 1,547 fell and 153 remained unchanged.

Shares of Shakti Pumps (India) surged 13% most in nearly nine months since December 31, 2021. Trading volume is twice the 30-day average.

The company announced that it received advance worth $6 million from Export-Import Bank of India on behalf of Government of Uganda, for supplying solar-powered water pumping system. Shakti Pumps will begin the execution of project from October 2022.

The company was earlier awarded a contract in March 2021 from Government of Uganda for supply of a solar-powered water pumping systems at contract price of $35.30 million, exclusive of VAT.

Source: Exchange Filing, Bloomberg

Shares of food producers in India gained in-line with global peers. The rise comes amid fall in grain futures amid strong dollar and the anticipated record high wheat harvest in Russia.

Shares of ITC, Britannia Industries rose in trade.

Source: Bloomberg

Shares of Power Grid jumped 3.5%, most in five months and are on course to snap seven-day losing streak.

The rise comes after The Economic Times reported that government rejected a proposal for Power Grid to buy a controlling stake in power financier REC Ltd., citing Power Minister RK Singh.

Trading volume is 4.5 times the 30-day average. Of the 24 analysts tracking the company, 19 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The return potential of the stock is 15.9%.

Citi reiterated 'buy' and kept target unchanged at Rs 275 (implied return of 36.92%) on Monday. Antique Stock Broking also retained 'buy' and raised target from Rs 250 to Rs 257 (implied upside of 27.96%).

Citi said that the decision of government removed a major overhang on Power Grid stock and cited safe and stable business model, high return-on-equity, market share in transmission business, reasonable valuations as positives.

The losing streak ahead of today's session came amid reports indicating that Power Ministry is in talks with Power Grid to purchase PFC's 52.63% stake (Rs 14,400 crore) in REC. Jefferies, on Thursday, said PFC should ideally finance power projects through stake sale proceeds, and added Power Grid had sufficient cash and reiterated positive view on the 1-year and medium-term transmission spend growth story. However, Jefferies observed that the purchase of PFC's stake in REC was a near-term dampener and could adversely impact FY23-25E EPS by 3-5%.

Source: Bloomberg, Brokerage reports, The Economic Times

Shares of Sterlite Technologies Ltd is down over 3% and are on course to fall for third day. Over the last three days, the stock lost nearly 12%.

The company announced post market hours on Friday that Mihir Modi tendered his resignation from the positions of Chief Financial Officer and Key Managerial Personnel. The resignaion will be effective from October 14, 2022.

On Monday, post market hours, the company said its subsidiary Sterlite Global Venture agreed to sell the entire 80% stake held in Impact Data Solutions Ltd., UK to Hexatronic Group AB for British Pound 9.6 million, subject to regulatory approvals.

The additional earnout consideration, capped at maximum amount of British Pound 7.2 million will be determined based on the actual EBITDA performance of Impact Data Solutions for calendar year ending December 31, the company said in an exchange filing.

Trading volume is 1.2 times the 30-day average. All five analysts tracking the company maintain 'buy'. The return potential of the stock is 35.5%.

Source: Exchange filings, Bloomberg

Yield on the 10-year bond fell 7bps, most in over two weeks, to 7.29% during the session.

Source: Bloomberg

Shares of Dish TV fell 10%, the steepest intraday decline in over three months since June 20.

The stock is on course to extend losses for the third day. Over the last three days, the stock lost 24%.

The company's shareholders reject 4 of 6 resolutions at AGM, Dish TV said in an exchange filing post market hours Monday. Dish TV’s non-executive independent director Rakesh Mohan vacated his office after shareholders rejected approving his reappointment. Shareholders also rejected the adoption of FY21 and FY22 results and the appointment of new statutory auditors S N Dhawan & Co. The AGM was adjourned sine die. The board strength is now down to two, which is below the minimum strength required by SEBI. The board has sought the Information and Broadcasting Ministry’s approval for six directors.

Source: Exchange filing, Bloomberg

Shares of Embassy Office Parks REIT fell nearly 2% to a nine-month low of Rs 345 apiece.

Embassy REIT has 77.1 million shares, aggregating to 8.1% equity change hands in a large trade. Details of buyers, sellers are not known immediately.

Kotak Realty Fund has invested Rs 1600 crore in Embasy REIT. The money was invested from the 12th real estate fund that had recently raised $590 million. The block deal happened today, according to an executive aware of the details.

Trading volume is 77 times the 30-day average. The stock has outperformed benchmarks rising 6.8% in 2022 so far compared to -0.6% change for BSE Sensex.

All 16 analysts tracking the company maintain 'buy'. The return potential of the stock is 19.1%.

Source: Bloomberg

Shares of Nazara Technologies fell nearly 4% and are on course to log losses for third day in a row.

Over the last three days, the stock has lost over 12%.

The fall comes after Tamil Nadu Cabinet approved an ordinance to ban online gaming (which involves betting) in the state. The ordinance will be promulgated after governor's approval.

Trading volume is nearly twice the 30-day average. Of the 11 analysts tracking the company, eight maintain 'buy', one suggests 'hold' and two recommend 'sell'. The return potential of the stock is 26.9%.

Source: Bloomberg

Shares of Mahindra Logistics rose over 5.6%, most in nearly two weeks since September 14.

Trading volume is more than six times the 30-day average.

The company has agreed to acquire Rivigo's B2B express cargo service unit on a slump-sale basis, in a deal valued at Rs 225 crore.

Of the 13 analysts tracking the company, 10 maintain 'buy', three suggest 'hold'. The return potential of the stock is 1.4%.

Axis Research reiterated 'buy' and kept target unchanged at Rs 630 (implied upside of 21.52%) today. Motilal Oswal retained 'neutral' and maintained target at Rs 515 (implied return of 2.3%) on Monday.

Source: Bloomberg, Exchange filing

India's stock benchmarks rose, aided by broad based gains across sectors led by Oil & Gas, Energy, Power stocks.

The S&P BSE Sensex rose 0.35% (over 200 points) to 57,347.73. The NSE Nifty 50 advanced by similar magnitude to 17,070.45. Today 38 of Nifty 50 stocks rose while 12 fell.

Power Grid, ONGC, Cipla, NTPC and Coal India are among the top Nifty 50 gainers.

The broader indices almost mirrored its larger peers with S&P BSE MidCap rising 0.3% and SmallCap jumping 0.6%. All 19 sectoral indices compiled by BSE Ltd. advanced with Energy, Telecom, Utilities, Oil & Gas and Power measures adding over 1%.

The market breadth is skewed in the favour of bulls. About 1,922 stocks rose, 519 fell and 77 remained unchanged.

Yield on the 10-year yield rose 2bps to 7.38%, at the open.

Source: Bloomberg

Indian currency appreciated 18 paise to 81.45, at the open.

Source: Bloomberg

• U.S. Dollar Index at 113.73

• U.S. 10-year bond yield at 3.87% on Monday

• Brent crude up 0.2% to $84.2 per barrel

• Nymex crude at $76.84 per barrel

• SGX Nifty down 0.3% to 16,971.5 as of 6:20 a.m.

• Bitcoin up 1.2% to $19,339.1

• Dish TV’s non-executive independent director Rakesh Mohan vacates his office after shareholders didn’t approve his reappointment.

• Shareholders also didn’t approve the adoption of FY21 and FY22 results and the appointment of new statutory auditors S N Dhawan & Co.

• The AGM was adjourned sine die.

• The board strength is now down to two, which is below the minimum strength required by SEBI.

• The board has sought the Information and Broadcasting Ministry’s approval for six directors.

Source: Exchange filing

• Jubilant FoodWorks: The company has completed the acquisition of 29.42% stake in Roadcast Tech Solutions as per a July agreement. It will will acquire an additional 10.58% stake in Roadcast Tech by Oct. 26.

• Mahindra Logistics: The company has agreed to acquire Rivigo's B2B express cargo service unit on a slump-sale basis, in a deal valued at Rs 225 crore.

• Jyoti Structures: The company has secured a Rs 237-crore contract from Sterlite Power Transmission for turnkey supply and construction of 400 kV and 220 kV double-circuit transmission lines in Goa and Karnataka. These will be commissioned in a phased manner by December 2023 and July 2024.

• JSW Energy: India Ratings has upgraded the company's long-term facilities to ‘IND AA/Stable’ from ‘IND AA-/Stable’.

• Amara Raja Batteries: The board has approved demerger of plastic component for battery business from Mangal Industries Ltd. to Amara Raja. MIL shareholders will receive 65 shares of Amara Raja for every 74 shares held.

• Filatex India: Commissioned a project for debottlenecking melt capacity of 50 million tonnes per day and manufacturing lines of 120 million tonnes per day at its Dahej plant.

• Embassy REIT: Blackstone seeks to raise up to Rs 2,650 crore ($325 million) by selling 7.7 crore shares at Rs 345 apiece.

• BSE: The stock exchange has received SEBI's approval to launch an electronic gold receipt segment on its platform.

• Delta Corp/Nazara Tech: The Tamil Nadu cabinet has approved an ordinance that bans online gaming in the state.

Asian markets opened on a cautious note Tuesday following another selloff in US stocks, soaring bond yields and volatile currency markets as investors brace for a heightened risk of global recession.

Shares edged higher in Japan and Australia after three days of losses in those two markets while equity futures pointed to a decline in Hong Kong. U.S. contracts made small gains after the S&P 500 closed at its lowest since 2020 and the CBOE Volatility Index spiked past 30, a level it hasn’t closed above since June.

At 6:40 a.m., the Singapore-traded SGX Nifty--an early barometer of India's benchmark Nifty 50--fell 0.3% to 16,971.5 points.

Bonds remained under pressure in Australia and Japan while benchmark 10-year Treasury yield held near 3.9%--a level last seen in 2010.

The dollar gauge inched back from a record high Monday, when Federal Reserve officials repeated hawkish comments on policy. Asian currencies including the yen and yuan strengthened slightly while staying around levels that have caused concern from authorities in both countries.

The Indian rupee, meanwhile, has plumbed to record lows.