Nifty, Sensex End At Day's Highs - ICICI Bank Leads Advance; FPIs Stay Net Buyers

Overseas investors remained net buyers for the third straight day on Thursday.

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 2,913.09 crore today.

Domestic institutional investors turned net sellers and sold equities worth Rs 212.61 crore today.

Institutions have net bought Rs 2,802.99 crore worth of equities this month so far and have net sold Rs 30,680.09 crore worth of Indian equities till date in 2022.

India’s stock benchmarks closed higher in trading session on Thursday aided by banking and IT stocks.

The Sensex closed 659.31 points, or 1.12%, higher at 59,688.22. The Nifty 50 closed up 1% at 17,798.75.

Of the Nifty 50 constituents, 16 stocks fell and 33 rose, while one remained unchanged.

Axis Bank Ltd., ICICI Bank Ltd., State Bank of India Ltd., Bajaj Finserv Ltd. and Baja Finance Ltd. were the top gainers, while ICICI Lombard General Insurance Co., REC Ltd. , Power Finance Corp., SBI Life Insurance Co. and ICICI Prudential Life Insurance Co. were the top laggards.

The Midcap and Smallcap index underperformed its larger peers with the Midcap gauge gaining 0. 3% and the Smallcap gaining 0.6%.

Fourteen of the 19 sectoral indices compiled by BSE Ltd. gained, with banking and IT indexes increasing 1.9% and 1%, respectively.

The market breadth was skewed in favour of the bulls. About 2,065 stocks rose, 1,401 fell and 123 remained unchanged.

NMDC has fixed the price of lump iron ore at Rs 4,100 per ton with effect from Sept. 8.

The company has set the prices for fines at Rs 2,910 per ton starting Sept. 8.

Websol Energy inked a term sheet with AMP Energy India Pvt. to establish a joint venture to manufacture and produce up to 1.2 GW monocrystalline PERC (Passivated Emitter and Rear Cell) solar cells and modules.

• The solar cells and modules will be produced in two phases of 600 MW each at AMP Energy’s existing unit at Falta, West Bengal.

• Websol plans to hold 51% of the stake in the joint venture, while AMP Energy will own the remaining 49%.

• The project will be funded through a combination of debt and equity. It will include an off take agreement with AMP Energy India for up to 50% production.

Shares of Tanla Platforms Ltd. gained 5% and hit upper circuit after the company's board approved share buyback of Rs 170 crore.

The company will buy back shares at Rs 1,200 apiece. The resultant shares to be bought back at the offer price are 14,16,666 shares, representing 1.04% of total paid-up equity.

Further, the company said the offer price represents premium of 66.39% and 66.27% over the closing price on the NSE and BSE respectively, on Sept. 1.

Tata Power Renewable Energy Ltd. has partnered with stainless steel maker Viraj Profile Pvt. Ltd. to set up a 100 MW captive solar plant.

• The plant will be developed by the Tata-Group company at its Nasik site and the power generated will be used for captive consumption by Viraj Profile’s Tarapur Plant, company said in a stock exchange filing.

• Tata Power will own 74% of the generation while Viraj Profile will hold the remaining 26%.

• Tata Power Renewable has created a special purpose vehicle- TP Nanded Ltd. to undertake the construction, operation and maintenance of the plant.

• With this project, Viraj Profile's dependability on non-renewable power resources will reduce by about 50%.

• The project will get commissioned by July 2023.

• The plant is expected to generate about 200 MUs of energy and offset approximately 170.43 million Kg of CO2 annually.

Source: Exchange filing

Shares of ICICI Bank Ltd. hit their 52-week high, after the scrip gained as much as 2.8% to Rs 900.8 apiece.

The stock gained the most since Aug. 30, tracking a rise across banking stocks. Today, Shree Cement, BPCL, M&M, ICICI Bank and Axis Bank were among the top gainers.

Shares of Century Textiles and Industries Ltd. gained 5.1% to Rs 928.25 on the BSE -- most in 14 weeks. Trading volume is five times the 30-day average.

All three analysts tracking the company have a 'buy' rating on the stock. The return potential of the stock is 24.4%.

Shares of Panacea Biotech gained 5% before reversing to 4% losses.

Trading volume is thrice the 30-day average. U.S. FDA had issued Form - 483 on June 9, with eight observations after inspecting the company's facility at Baddi in Himachal Pradesh between May 30 and June 8.

Today Panacea informed bourses that it received communication from U.S FDA indicating the inspection classification as 'Official Action Indicated'. The OAI classification means that the U.S. drug regulator expects corrective action and may withhold approval of pending producet applications till the observations are resolved.

Panacea Biotec said that it will work closely with U.S. FDA to close these observations.

Source: Exchange filing, Bloomberg

• Shares of auto makers like M&M, Eicher Motors, Ashok Leyland as well, component makers and auto-linked stocks like Schaeffler India, Tube Investments, Motherson Sumi Wiring advanced.

• Tyre makers like MRF, Apollo Tyres also rose.

• The rise comes after Federation of Automobile Dealers Association predicted the sale of passenger vehicles over the festive period to rise to highest in a decade, as supply constraints ease.

Source: Bloomberg

Mixed start for European markets ahead of European Central Bank's monetary policy decision. The ECB is expected to front-load tightening and announced a 75bps rate hike, according to Bloomberg estimates.

Source: Bloomberg

• Shares of metal products maker Pennar Industries rose over 5% after bagging orders worth Rs 511 crore, across its various business verticals, over July and August 2022.

• In an exchange filing, the company said that the orders are to be executed within the next two quarters. Reliance, Yamaha, Emerson, ICF, Mahindra Defence Systems, Saint Gobain, Schaeffler India, Hindalco, Kirloskar Toyota were among those who placed the orders.

Source: Exchange filing, Bloomberg

India's stock benchmarks advanced, aided by fall in crude oil prices and rise in banking, information technology stocks, amid rise in global equities.

The Sensex rose over 400 points (0.75%) to 59,468.57. The Nifty 50 advanced by similar magnitude to 17,741.60. Today 30 of Nifty 50 stocks rose while 20 fell. Shree Cement, BPCL, M&M, ICICI Bank and Axis Bank were among the top gainers.

The MidCap index underperformed its larger peers, gaining 0.35% while SmallCap measure almost mirrored Sensex, Nifty. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with Bankex gauge rising 1.6%.

The market breadth is skewed in the favour of bulls. About 2,142 stocks rose, 1,223 fell and 137 remained unchanged.

Shares of Ambuja Cements rose 2% and are on course to gain for fifth day in a row while ACC's stock is set to gain for third day, ahead of closure of the open offer made by Adani Group on Friday, September 9.

• The gains come amid slide in crude oil prices and ahead of the completion of a mandatory open offer from Adani Group tomorrow as the ports-to-power conglomerate seeks to acquire an additional 26% stake in these firms after buying their founder Holcim’s India assets.

• Adani family group's Mauritius-based firm Endeavour Trade and Investment on August 26, 2022 launched its Rs 31,000-crore open offer to acquire 26 per cent additional stake from the public shareholders of Swiss firm Holcim's two Indian listed entities Ambuja Cements and ACC.

• In two separate regulatory filings, Ambuja Cements and ACC have submitted their letter of offers for the open offer, launched by the Adani family group's Mauritius-based firm Endeavour Trade and Investment.

Source: Bloomberg

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

Shares of I.T. services firm Sonata Software climbed 12.5%, most in over nine months.

• Trading volume is 15 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.

• In an exchange notification earlier this week, the company set September 10 as record date for the purpose of ascertaining the eligibility of shareholders for issuance of bonus shares of one new share of Rs 1 each for every three shares of Rs 1 each. The ex-date for this stock will be Friday.

• Of the six analysts tracking the company, three maintain 'buy', three suggest 'hold'. The return potential of the stock is 2.7%.

Source: Bloomberg, Exchange Notification

• Digital lending has the potential to catalyse cash flow based lending to MSMEs, says RBI Deputy Governor Rajeshwar Rao.

• One specific area where digital lending has the potential to be a catalyst to economic growth is cash flow based lending to MSMEs.

• The challenge for the regulator in a fast developing economy like ours is to keep pace with market innovations and ensure safety without stifling innovations.

• Along with benefits, need to be cognisant of inherent risks of digital lending says RBI Deputy Governor, Rajeshwar Rao

• Need to take cognisance of inherent risks like data privacy breach, disruptive business models and exhorbitant interest rates.

• Digital lending needs to be responsible, inclusive and affordable and this is something every financial institution should strive for.

• Responsible financial innovation requires balancing innovative products with necessary safeguards for ensuring financial systems stability and customer protection.

Source: Rajeshwar Rao, Deputy Governor, RBI at Assocham annual summit and awards

• The wholly owned subsidiary has an authorized share capital of Rs 10 lakh divided by 1 lakh equity shares of Rs 10 each.

• The new entity will be use to carry on the business of manufacture, sale and dealing of multiple grades of nitrogenous, phosphatic, potassic fertilisers; chemical and other allied items essential to various crops/industries.

• Hindustan Zinc Fertilisers will deal with DAP/NPK complex fertilisers along with specialty and crop specific fertilisers, crop protection chemicals among others.

Source: Exchange Filing

• Sensex, Nifty gain, Auto, banking, information technology and telecom stocks advance while metals and realty stocks decline.

Source: Bloomberg

• Shares of Max Ventures Industries rose nearly 3% after the company announced that it executed share purchase agreement to buy 100% stake in Acreage Builders for Rs 291.50 crore (Enterprise value of Rs 322.50 crore).

• The company executed the share purchase agreement on September 6 for the acquisition of a 100% stake in the realty player.

• The transaction is expected to be completed by February 2023. After the acquisition, the company would become a wholly owned subsidiary of Max Estates Limited, one of the three holding companies of the Max Group.

• Acreage Builders Private Limited holds a license to develop commercial project over an area measuring 7.15 acres, located at Golf Course Extension Road, one of the most promising upcoming micro markets in Gurugram.

• Trading volume on Max Ventures' stock is 1.6 times the 30-day average.

Source: Exchange Filing, Bloomberg

Shares of electric power distribution equipment and transformers maker Schneider electric Infra surged over 15%, most in nearly seven months since Feb. 11.

• Trading volume is 17 times the 30-day average. The relative strength index of the stock is 80, suggesting it may be overbought.

• The sharp uptick comes after the company approved enhancing the production capacity of vacuum interrupters and circuit breakers by setting up a manufacturing unit in Kolkata.

• The company has an existing capacity of 80k MV vacuum interrupters. The capacity utilisation stands at 80%.

• The company plans to raise its capacity to 180k MV vaccum interrupters and circuit breakers assembly lines. Schneider Electric intends to invest Rs 138 crore over three years to expand capacity to meet domestic demand as well as to increase exports.

• The stock has outperformed the benchmarks gaining 14.2% in 2022 so far compared to 0.8% gains for Sensex.

Source: Exchange filing, Bloomberg

Indian currency appreciated 24 paise to 79.66 at the open. The Rupee trimmed some of the gains to 79.82 against the U.S. dollar.

Yield on the 10-year bond fell 11bps, most in three weeks, to 7.07%. The gain in Rupee and bonds are aided by slide in crude prices and drop in U.S. yields.

Source: Bloomberg

• Nifty Auto index gains over 1%. Thirteen of the 15 constituents rise after passenger vehicle sales jumped 6.5% YoY in August. Commercial vehicles sales rose 24.1% YoY while two-wheelers rose 8.52% YoY.

• FADA added that sales of PVs over festive period is likely to be the strongest in a decade as supply constraints ease.

Source: FADA, Bloomberg

Auto Retail Sales August (YoY)

• Passenger vehicle sales rise 6.5% to 2,74,448 units

• Two-wheeler sales rise 8.5% to 10.74 lakh units

• Commercial vehicle sales rise 24% to 67,158 units

Source: FADA

Shares of InterGlobe Aviation fell 4.7%, most in over two months since June 20.

• Trading volume is more than 263 times the 30-day average.

• The company has about 11.2 million shares (aggregating to 2.9% equity) change hands on NSE in four large trades.

• Buyers, sellers are not immediately known.

• According to Bloomberg News report, the Gangwal family, one of the promoters of Interglobe Aviation Ltd., intended to offload 2.8% stake in the airline through block deal. Rakesh Gangwal, the co-founder of IndiGo airline, along with Shobha Gangwal and the Chinkerpoo Family Trust will offer 1.08 crore shares, according to the report.

• Of the 26 analysts tracking the company, 16 maintain 'buy', three suggest 'hold' and seven recommend 'sell'. The return potential of the stock is 13.2%

Source: Bloomberg

India's stock benchmarks advanced, aided by broad based gains led by information technology, power, utilities, oil & gas, banking stocks amid slide in crude prices even as U.S. treasury yields stabilised.

The S&P BSE Sensex rose 0.75% (over 430 points) to 59,465.42. The NSE Nifty 50 advanced by similar magnitude to 17,742.45. Today 47 of Nifty 50 stocks rose, while three fell. BPCL, Asian Paints, Tech Mahindra, IndusInd Bank, Bharti Airtel are among the top gainers.

The broader indices almost mirrored their larger peers. All 19 sectoral indices compiled by BSE Ltd. advanced.

The market breadth is skewed in the favour of bulls. About 2,048 stocks rose, 431 fell and 78 remained unchanged.

• Yield on the 10-year bond fell 11bps to 7.07%, amid slide in crude prices and drop in U.S. yields.

Source: Bloomberg

• Indian currency appreciated 24 paise to 79.66, during the session.

Source: Bloomberg

Nomura

• Upgrades to 'buy' from 'neutral' with target price raised to Rs 918 from Rs 775, an implied return of 26.35%.

• Cites land leasing fee policy formalisation as the key reason for the upgrade.

• Believes policy formalisation should lead to incorporation of acquisition synergies.

• Expects benefits for Container Corp. as central government's plan to divest its 30.8% strategic stake in the company was held up due to clarity on the LLF issue.

• Believes that deck has been cleared for divestment.

• Cabinet's decision on LLF enhances visibility on divestment and believes that investors will start factoring in synergy benefits for an acquirer.

• Adds Rs 143 per share in potential acquisition synergies which led to hike in target price.

Since Yesterday, Nomura upgraded stock to 'buy' while Batlivala & Karani, JM Financial, Citi, Jefferies, JP Morgan, Credit Suisse and HSBC reiterated 'buy'.

Source: Nomura note

• HeidelbergCement India

• Vedant Fashions

• Shares of food companies may be active after Russia's Putin criticised a grain deal with Ukraine .

• Grain shipment corridor from Ukraine is not helping poorer countries. Majority of supplies are going to Europe, according to Russian president.

• Chicago Wheat futures for December surged 7% and closed at the highest level in nearly two months.

• In Focus: ITC, Britannia Industries, Kovilpatti Lakshmir Roller Flour Mills, Adani Wilmar

Source: Bloomberg

• Adani Group’s open offer for 26% equity of NDTV will start on Oct. 17 and close on Nov. 1.

• Open offer price at Rs 294 to acquire 1.67 crore shares of the company.

Source: Exchange filing

• Zee Entertainment: The company received NCLT approval to convene shareholder meet for considering, approving Sony deal. NCLT directed it to hold the shareholders' meet on October 14, 2022.

• Interglobe Aviation: The Gangwal family, one of the promoters of Interglobe Aviation Ltd., will offload 2.8% stake in the airline through block deal, according to Bloomberg News. Rakesh Gangwal, the co-founder of IndiGo airline, along with Shobha Gangwal and the Chinkerpoo Family Trust will offer 1.08 crore shares, it said.

• LIC Housing Finance: The company appointed Ashwani Ghai as the Chief Operating Officer.

• IRCTC: The company emerged as the successful bidder in sale of commercial built-up space in WTC Nauroji Nagar, New Delhi.

• Zydus Lifesciences: The company announced that it has achieved a positive Proof-of-Concept in its Phase 2 clinical study of ZYIL1, in patients with Cryopyrin Associated Periodic Syndrome.

• Redington India: Apple launched iPhone 14 series. It intends to manufacture it in India about two months after, according to Bloomberg. Redington is a re-seller of Apple products in India.

• Aditya Birla Fashion and Retail: SEBI granted relaxation to the company from securities contracts rules in preferential allotment To Caladium Investment.

• Concor: The Union Cabinet approved lowering the railway land licensing fees to 1.5%, which is expected to facilitate the disinvestment process of Concor.

• AAVAS Financiers: CARE Ratings has upgraded the company’s long-term facilities credit rating to CARE AA from CARE AA-. Outlook on the long-term facilities rating is revised to stable from positive.

• Yes Bank: SEBI imposes Rs 2 crore penalty on Former Yes Bank CEO Rana Kapoor

• TCS: To deploy cloud-based platform at Nokia.

• Cipla: Gets U.S. FDA approval for generic version of Revlimid.

• U.S. Dollar Index at 109.77

• U.S. 10-year bond yield at 3.56% on Wednesday

• Brent crude up 0.38% to $88.33 per barrel

• Nymex crude at $82.43 per barrel

• SGX Nifty up 0.5% to 17,729 as of 6:13 a.m

• Bitcoin down 0.63% to $19,265.3

Asian equities gained after U.S. treasury yield stabilised and dollar strengthening further.

Japan paced a 0.7% advance in the regional index, a smaller gain than the rallies of about 2% in the S&P 500 and Nasdaq 100 overnight.

At 6:35 a.m., the Singapore-traded SGX Nifty--an early barometer of India's benchmark Nifty 50--traded 0.56% higher at 17,729 points.

The stronger U.S dollar led currencies like yen and the power to the lowest since 1985. U.S. treasury yield stabilised as bonds got a boost from the fall in oil prices.