Sensex, Nifty Reverse Course In Last Hour On August Contracts Expiry Day; FPIs Stay Net Buyers
India's stock benchmarks declined after a volatile final hour of trade on the expiry day of August series derivatives contracts
Foreign Investors Net Buyers
Overseas investors turned net buyers for the third straight day on Thursday.
FPIs snapped out of the longest stretch of net inflows of 13 days last Thursday on August 18.
As per data from the National Stock Exchange, foreign portfolio investors net bought equities worth Rs 369.06 crore today.
While, domestic institutional investors net sold equities worth Rs 334.31 crore today.
Institutions have net bought Rs 11,462.14 crore worth of equities so far in August and net sold equities worth Rs 36,977.55 as yet in 2022.
10-Year Bond Yield Rises
Yield on the 10-year bond rose 3bps to 7.32% during the session, before closing at 7.30%.
Source: Bloomberg
Rupee Falls Against U.S. Dollar
The Indian currency depreciated 8 paise to 79.90 during the session, just 16 paise off the record low of 80.06.
The Rupee closed at 79.88 and was the worst performer among Asian currencies, dragged by rise in crude prices.
Source: Bloomberg
Closing Bell
India's stock benchmarks declined after a volatile final hour of trade on the expiry day of August series derivatives contracts. The Sensex and Nifty reversed course, dragged by information technology, banking stocks ahead of the crucial Jackson Hole annual economic symposium of the U.S. Federal Reserve which begins today.
The Sensex lost over 300 points to 58,774.72. The 30-stock gauge added nearly 400 points to an intraday high of 59,484.35 before falling 700 points in the final hour. The Nifty 50 also declined 0.5% to 17,522.45. Today 18 of the Nifty 50 stocks rose, while 32 fell. Adani Ports & SEZ, Bajaj Finance, Infosys, TCS and Cipla were the top laggards.
The broader indices outperformed their larger peers, with both MidCap and SmallCap measures gaining 0.2%. Sixteen of the 19 sectoral indices compiled by BSE declined with Information Technology and Teck indices falling 1%.
The market breadth was skewed in the favour of bulls. About 1,912 stocks rose, 1,509 fell and 133 remained unchanged.
Government Approves Export Policy For Wheat Or Meslin Flour
Cabinet Committee on Economic affairs gave its nod to the proposal to amend policy of exemption for wheat or meslin flour from export restrictions.
Move to allow government to put a restriction on export of wheat flour, and tackle rising prices of wheat flour.
Source: PIB
DreamFolks Services IPO Subscription Status: Day 2 Update
DreamFolks Services Ltd.'s Rs 562.10-crore initial public offering continued to see investor demand on the second day of subscription.
The initial share sale of the airport service aggregator platform, opened on Wednesday, was fully subscribed on the first day.
Subscription Status: Day 2
The IPO subscribed 3.87 times as of 2:00 p.m. on Aug. 25
Institutional investors: 0.26 times.
Non-institutional investors: 3.99 times.
Retail investors: 14.54 times.
European Markets Advance
European markets open higher ahead of Jackson Hole annual economic symposium of the U.S. Federal Reserve, which begins today.
Source: Bloomberg
IDBI Bank Gains Most In Three Weeks
Midday Market Update: Sensex, Nifty Rise; Banking, Metal, Realty Stocks
India's stock benchmarks advanced, aided by gains in banking, metal, realty and consumer durables stocks.
The Sensex rose 0.5% (300 points) to 59,384.55. The Nifty 50 advanced by similar magnitude to 17,696.15. Today 38 of Nifty 50 stocks rose while 12 fell. Shree Cement, UPL, Grasim Industries, Kotak Mahindra Bank and HDFC Life are among the top gainers.
The broader indices outperformed their larger peers, with MidCap and SmallCap gauge gaining over 0.8%. All 19 sectoral indices compiled by BSE advanced with realty, consumer durables, metal and banking indices gaining the most.
The market breadth is skewed in the favour of bulls. About 2,246 stocks rose, 1,051 fell and 151 remained unchanged.
PB Fintech Jumps Most In Three Weeks
Shares of PB Fintech rose over 8%, most in three weeks. Trading volume is more than thrice the 30-day average.
The company approved investment of Rs 250 crore in Paisabazaar Marketing and Consulting and Rs 650 crore in Policybazaar Insurance Brokers, respectively during FY2022-23.
PB Fintech also incorporated a step-down subsidiary in Abu Dhabi to extend its technology hub in UAE. PB Fintech will acquire 45% to 51% stake in UAE-based YKNP Marketing Management through its Dubai arm for $4 million.
Of the nine analysts tracking the company, seven maintain 'buy', two suggest 'hold'. The return potential of the stock is 55.4%.
Source: Exchange filing, Bloomberg
NHPC Jumps Most In Three Weeks
Shares of NHPC Ltd. jumped 3%, most in three weeks.
The rise comes after the company's subsidiary, NHPC Renewable Energy, signed an MoU with Rajasthan government to develop ultra-mega renewable energy power park in the state.
THe MoU gives framework for collaboration to set up 10 Giga Watt Renewable Energy parks.
The stock has gained 19% in 2022 so far compared to 2.8% rise for Sensex.
All the eight analysts tracking the hydro-power developer maintain 'buy'. The return potential of the stock is 16.4%.
Source: Exchange filing, Bloomberg
Paper-Linked Stocks Pare Early Gains
Shares of paper firms rose in intraday trade amid reports of companies mulling price hike.
Source: Bloomberg
Delhi High Court Dismisses WhatsApp’s Challenge To CCI Investigation Into Its 2021 Privacy Policy Update
The division bench was hearing an appeal against a single judge bench order which rejected the plea against the CCI investigation
In April 2021, the single judge bench held that CCI did not exceed its jurisdiction in directing the investigation.
PSP Projects Gains Most In Over Five Weeks
Shares of construction firm PSP Projects rose over 6.5%, most in over five weeks.
Trading volume is nearly five times the 30-day average. All 10 analysts tracking the company maintain 'buy'. The return potential of the stock is 13.3%.
The rise comes after the company announced post market hours on Wednesday that it was awarded contracts worth Rs 247.3 crore (excluding GST) from Precast and Government segments. The total order inflow for FY2022-23 stands at Rs 1,344.24 crore.
Source: Exchange filing, Bloomberg
Bharti Airtel Gains As Promoters Singtel, Bharti Telecom Move To Equalise Stake
Shares of Bharti Airtel gained 2% after the company said its promoters Bharti Telecom and Singtel will equalise their stake in the company.
Singtel (Singapore Telecommunications Ltd.) had earlier informed Singapore's exchanges that it would sell 3.3% of its shares to Bharti Telecom for 2.25 billion Singaporean dollars ($1.6 billion).
The stake sale will be completed within 90 days. Singtel expects to gain 600 million Singaporean dollars from the sale which will trim its holding in Airtel to 29.7%.
Singtel plans to utilise the proceeds from the sale to reduce debt and fund capital needs for 5G transition.
Of the 33 analysts tracking Bharti Airtel, 30 maintain 'buy', two suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.8%.
Source: Exchange filings, Bloomberg
Union Bank of India Gains Most In Three Months Amid Plans To Sell KSK Mahanadi Loan
Shares of Union Bank of India gained nearly 8%, most in over three months since May 13.
Trading volume is nearly nine times the 30-day average. Share price crossed above 200-day simple moving average, indicating potential upward price momentum.
The relative strength index of the stock is 71, suggesting it may be overbought.
The stock is on course to gain for second day. On Wednesday, Economic Times reported that lender, which is the second largest creditor to KSK Mahanadi Power, put it Rs 2,077 crore outstanding loan to the company on the block, citing auction notice.
According to the report, Union Bank of India has set a reserve price of Rs 919 crore in cash for its exposure, with an estimated recovery of 44% of outstanding amount). The last date for expression of interest from buyers is August 31. The electronic auction will taken place on September 1.
Already, SBI, PNB, Bank of Baroda and Axis Bank sold their debt in the company which has been under the insolvency process for years. KSK Mahanadi was admitted to bankruptcy court in October 2019 after a complaint by Power Finance Corp. KSK Mahanadi has admitted claims of Rs 29,501 crore from lenders.
Of the seven analysts tracking the company, three maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is -4.5%.
Source: Bloomberg, The Economic Times
NDTV Shares Advance; Relative Strength Index Above 70
Opening Bell: Sensex, Nifty Rise; Bharti Airtel Gains Nearly 2%
India's stock benchmarks opened higher, aided by gains across sectors liked by telecom, consumer durables, metals, information technology and realty.
The S&P BSE Sensex added 0.4% (250 points) to 59,334.57. The NSE Nifty 50 also advanced by similar magnitude to 17,660.95. Today 44 of the Nifty 50 stocks rose while six fell. Bharti Airtel, SBI Life, UPL, Tata Steel and Bajaj Finserv were among the top Nifty gainers
The broader indices outperformed their larger peers with the S&P BSE MidCap rising 0.6% and SmallCap adding 0.8%. All 19 sectoral indices compiled by BSE Ltd. advanced with Metal, Realty measures gaining over 1%.
The market breadth is skewed in the favour of bulls. About 2,075 stocks rose, 588 fell and 113 remained unchanged.
10-Year Bond Yield Rises
Yield on the 10-year bond rose 3bps to 7.32%.
Source: Bloomberg
Rupee Opens Little Changed
Indian currency fell 3 paise to 79.84 against the U.S. dollar, at the open.
Source: Bloomberg
Trade Setup For Thursday
AGMs Today
3M India
Alkem Laboratories
Apollo Hospitals
Aster DM Healthcare
Bombay Burma Trading Corporation
Bharat Electronics
Delta Corp
Everest Industries
G R Infraprojects
Indian Oil Corporation
L.G. Balakrishnan and Bros
Mannapuram Finance
Stocks To Watch
NDTV/Adani Enterprises: The company’s promoters Pranoy Roy and Radhika Roy require SEBI’s approval for dealing in securities. SEBI’s approval, it said, is precursor to Vishvapradhan Commercial's entitlement to convert warrants into equity shares. RRPR Holding has instructed bankers to return Rs 1.99 crore deposited by VCPL.
Bharti Airtel: Singtel units have entered into an agreement to sell a 3.3% direct stake in Airtel to Bharti Telecom, according to Singapore company statement. Bharti Telecom is a joint venture between Bharti Enterprises and Singtel. The deal will happen at any time before Nov. 23. Singtel expects $600 million Singaporean dollars net gain on divestment. Post-deal, Singtel is expected to own an effective stake of 29.7% in Airtel, estimated to be worth $22 billion Singaporean dollars, which comprises a 19.2% indirect stake through Bharti Telecom and a 10.5% direct stake.
NHPC: The company's subsidiary NHPC Renewable Energy signed memorandum of understanding with the government of Rajasthan for setting up of 10 GW RE parks/projects at sites identified inside Rajasthan.
Lupin: The company has entered into a deed of assignment Boehringer Ingelheim International GmbH for the acquisition of brands Ondero and Ondero – Met, including trademark rights associated with the brands, which will enable it to provide comprehensive treatment options for diabetes management. The cost of acquisition is Euro 26 million (Rs 207.43 crore)
PB Fintech: The company approved investment of Rs 250 crore and Rs 650 crore in Paisabazaar Marketing and Consulting and Policybazaar Insurance Brokers respectively during the financial year 2022-23. It also incorporated a step-down subsidiary in Abu Dhabi with the objective of extending group’s technology hub in UAE and providing end to end tech solutions. It will also acquire 45% to 51% stake in UAE based YKNP Marketing Management via its Dubai unit for $4 million.
REC: The company has sold entire shareholding in Neemuch Transmission to Power Grid Corporation.
PSP Projects: The company has received contract worth Rs 257.35 crore taking its total order flow for FY23 till date to Rs 1,344.24 crore.
Sensex, Nifty Set To Rise; NDTV, Adani Enterprises, Bharti Airtel, NHPC, Lupin In Focus
Asian equities rose on Thursday as investors evaluated China’s latest steps to shore up its economy and awaited a key speech by Federal Reserve Chair Jerome Powell about the monetary policy outlook.
China increased stimulus with a further 1 trillion yuan ($146 billion) of measures for an economy, Covid-linked mobility curbs and some power shortages. Mainland shares erased early gains, reflecting uncertainty about whether the efforts are sufficient.
At 8:20 a.m., the Singapore-traded SGX Nifty--an early barometer of India's benchmark Nifty 50--traded 0.48% higher at 17,699.5 points.
Elsewhere, crude oil added to a rally