Sensex, Nifty Log Longest Winning Streak Of 2022; FPIs Stay Net Buyers Today

India's stock benchmarks rose for the seventh day in a row, making it the longest winning streak of 2022, aided by gains in information technology, consumer durables and telecom stocks. The Sensex reclaimed 60,000 levels after over four months while Nifty 50 inched closer to the 18,000 mark.

The Sensex rose 0.70% (more than 400 points) to 60.260.13. The Nifty advanced by similar magnitude to close at 17,944.25. Today 33 of Nifty 50 stocks rose while seven fell. Bajaj Finserv, Hero MotoCorp, Bajaj Finance, HDFC Life and Bharti Airtel were among the top gainers.

The broader indices almost mirrored their larger peers with both SmallCap and MidCap gauges rising over 0.5%. Barring S&P BSE Auto and Capital Goods, all the other 17 sectoral indices avanced with Telecom measure jumping nearly 2%.

The market breadth is skewed in the favour of bulls. About 2,018 stocks rose, 1,407 fell and 131 remained unchanged.

FPIs have stayed net buyers for thirteen days in a row. It is the longest buying streak by FPIs till date in 2022.

As per data from the National Stock Exchange, foreign portfolio investors net bought equities worth Rs 2,347.22crore today.

On the other hand, domestic institutional investors net sold equities worth Rs 510.23 crore on Wednesday.

Institutions had net bought Rs 3,978.31 crore worth of equities last month in July alone; the only month of the year of 2022 so far when institutions remained net buyers.

Institutions have net bought Rs 13,675.09 crore worth of equities so far in August and net sold equities worth Rs 34,764.6 as yet in 2022.

• Yield on the 10-year bond fell 13bps to 7.16% during the session.

• The 10-year bond yield closed at 7.19%

Source: Bloomberg

• Indian currency appreciated 40 paise (0.50%) to 79.26, during the session.

• The Indian Rupee trimmed gains to close at 79.45. The rise in Rupee comes amid softening retail inflation and slide in crude oil prices.

Source: Bloomberg

The Central Consumer Protection Authority passed an order on violation of consumer rights by Flipkart for allowing sale of sub standard pressure cookers.

• CCPA directs Flipkart to recall 598 pressure cookers sold and reimburse their prices to the consumers.

• Flipkart also directed to pay a penalty of Rs 1 lakh.

Source: PIB

Shares of UTI Asset Management Co Ltd. fell over 4.5%, most in over four weeks. Trading volume is more than twice the 30-day average. The relative strength index is at 75, suggesting the stock may be overbought.

• Today's decline follows a 15% jump in share price on Tuesday. UTI AMC clarified to the exchanges that it was not aware of any negotiations with Tata AMC. The clarification comes after media reports on Tuesday which stated that Tata Asset Management was eying 'significant' stake in UTI AMC, citing undisclosed sorces.

• Of the 13 analysts tracking the company, 12 maintain 'buy' and one suggests 'hold'. The return potential of the stock is 7.5%.

Source: Exchange filing, Bloomberg

• European markets decline ahead of preliminary GDP for Euro Zone, unemployment and U.K. inflation data for July.

Source: Bloomberg

Shares of Rategain Travel Technologies surged nearly 9%, most in over five weeks. Trading volume is thrice the 30-day average. Share price crossed above 100-day moving average on high volume.

• The surge in the global provider for Software-as-a-Service (SaaS) solutions for travel and hospitality comes after Air India selected Rategain's AirGain product to adjust prices with real-time, accurate and high quality airfare data.

• AirGain provides insights to accurately react to market price change and would help Air India to stay ahead of competition through its analytical abilities, Rategain said in an exchange filing on Wednesday.

• The company's founderand chairman, Bhanu Chopra said that 'AirGain represented change that the airline industry and its pricing teams are making to counter global volatility'.

• Rategain, which got listed on December 17, 2021 has fallen over 8.6% over the last eight months compared to 5.6% gains for Nifty 50. The stock is on course for extend gains for third day, gaining nearly 12% over the period.

Source: Exchange filing, Bloomberg

India's stock benchmarks advanced, aided by gains in telecom, information technology, banking, consumer durables and power stocks, amid slide in crude prices.

The Sensex rose nearly 400 points to 60,233.84. This is the first time the 30-stock gauge reclaimed 60,000 mark after four months. The Nifty 50 advanced 0.6% to 17,937.20. Today 37 of Nifty 50 stocks rose, 12 fell and one remained unchanged. Bajaj Twins, HDFC Life, BPCL and Bharti Airtel were among the top gainers.

The broader indices almost mirrored their larger peers. Barring S&P BSE Auto, all the other 18 sectoral indices compiled by BSE Ltd. advanced with Telecom index gaining 1.7%.

The market breadth is skewed in the favour of bulls. About 2,020 stocks rose, 1,275 fell and 154 remained unchanged.

Shares of SBI Cards & Payment Services jumped 7%, most in eight weeks.

• Trading volume on the credit card services provider was nearly seven times the 30-day average. The relative strength index of the stock is at 77, suggesting it may be overbought.

• The surge in SBI Cards' stock comes after Informist reported on Tuesday that the Reserve Bank of India was not comfortable with unregulated firms issuing credit cards, citing a banking industry source.

• 'Issuance of a credit card is permitted to banks and standalone companies that have taken a licence to issue cards, implying that anyone issuing cards without licence from RBI is violating the regulations', Informist quoted the unidentified source in its report.

• The stock has gained 8.4% in 2022 so far compared with 4.4% gains for Sensex. Of the 27 analysts tracking the company, 25 maintain 'buy' and two recommend 'sell'. The return potential of the stock is 14.8%.

Source: Bloomberg, Informist

• HDFC has demanded Ansal Housing repay its loans of Rs 13 crore with interest.

• HDFC has said it will invoke and sell 66.83 lakh shares of Ansal Housing pledged with it if payment isn’t done within the specified time.

Source: Exchange filing

• Bharti Airtel has paid its first instalment for 4 years of Rs 8,312.5 crore upfront.

• Airtel said the payment, along with moratorium on spectrum dues and AGR related payments for four years, will free up future cash flows for 5G roll out.

Source: Exchange filing

Indian currency rose 40bps (0.5%) to 79.26 during the session and is the biggest gainer in Asian currencies on Wednesday. The rise in Rupee comes amid softening of retail inflation for the third consecutive month in July, led by decline in prices of food items.

• CPI inflation fell to 6.71% in July from 7.01% in June, according to official data released on Friday. Food & Beverages inflation eased to 6.71% in July from 7.56% in June while core inflation declined to 6.04% in July compared to 6.22% in June.

• On Tuesday, official data showed that Wholesale inflation eased to 13.93% in July, the lowest in five months since February.

• Meanwhile bonds rallied as well, amid in crude oil prices as well. The 10-year bond yield slid 12bps to 7.17%.

• The bond and forex markets were shut on Monday and Tuesday due to local holidays.

Source: Bloomberg

Shares of Aarti Drugs jumped nearly 16%, most in at least a year.

• Trading volume is nearly 62 times the 30-day average. Of the four analysts tracking the company, three maintain 'buy' and one recommends 'hold'. The overall consensus price of analysts tracked by Bloomberg implies a downside of 0.4%.

• The sharp uptick comes amid reports that DGTR has recommended the extension of anti-dumping duty of Ofloxacin imports from China. Aarti Drugs had filed an application before DGTR in 2021, on behalf of domestic industry seeking anti-dumping duty on imports of 'Ofloxacin and its intermediates' originating in or exported from China. Aarti Drugs had alleged that dumping of the subject goods caused damage to domestic industry.

• Ofloxacin is used to treat infections like bronchitis, pneumonia and skin, bladder, urinary tract infections among others.

Source: Bloomberg, DGTR, News Reports

India's stock benchmarks opened higher, aided by gains in healthcare, FMCG, power and capital goods stocks. Sensex and Nifty are on course to log gains for the seventh consecutive day, which will make it the longest winning streak for the benchmarks in 2022.

The S&P BSE Sensex rose 0.13% (80 points) to 59,921.21. The NSE Nifty 50 advanced by similar magnitude to 17,854.30. Today 39 of Nifty 50 stocks rose while 11 fell. NTPC, Grasim, Hero MotoCorp, Eicher Motors, BPCL were among the top gainers.

The broader indices outperformed their larger peers with both MidCap and SmallCap measures rising 0.5%. Barring S&P BSE Information Technology and Teck indices, all the other 17 sectoral indices compiled by BSE Ltd. advanced with power and utility gauges rising nearly 1%.

The market breadth is skewed in the favour of bulls. About 1,707 stocks rose, 634 fell and 102 remained unchanged.

• Yield on the 10-year bond fell 8bps to 7.21% at the open.

Source: Bloomberg

• Indian currency appreciated 40 paise (0.50%) to 79.26 at the open.

Source: Bloomberg

The merger of Hinduja Leyland Finance into NxtDigital has been approved by the latter’s board, subject to regulatory and shareholder approvals.

• Shareholders of Hinduja Leyland will get 23 shares in NxtDigital for every 10 shares held by them.

• There is no cash consideration in the deal.

Source: Exchange filing

• U.S. Dollar Index at 106.4

• U.S. 10-year bond yield at 2.81% on Tuesday

• Brent crude up 0.2% to $92.5 per barrel

• Nymex crude at $86.85 per barrel

• SGX Nifty up 0.12% to 17,877.5 as of 6:18 a.m

• Bitcoin down 0.01% to $23,982

• Cipla: The company appointed Ashish Adukia as the Global Chief Financial Officer with effect from Aug. 16.

• Bajaj Hindusthan Sugar: State Bank of India has initiated Insolvency Resolution Process of the company before the National Company Law Tribunal, Allahabad Bench.

• Indoco Remedies: The company will acquire 26% stake in Jalansar Wind Energy Pvt., for setting up Solar Power Plant at Akkalkot, Solapur District, Maharashtra.

• Techno Electric & Engineering: The company has received orders worth Rs 1,455 crore from Rajasthan Rajya Vidyut Utpadan Nigam

• Bharti Airtel: To raise up to Rs 3,000 crore via commercial paper, reports Economic Times.

• Dr. Reddy's, Sun Pharma: First Zantac Cancer Case Set For Trial Dropped After Settlements.

• Max Healthcare: Singapore Government, BNP Paribas among buyers of Max Healthcare