Sensex, Nifty Close At Record Highs Aided By Bharti Airtel, RIL

India’s stock benchmarks closed at record aided by gains in banking, metals, telecom and pharma stocks, amid positive global cues following Federal Reserve Chairman Jerome Powell's dovish comments that the U.S. central bank would not be in a hurry to hike rates.

The S&P BSE Sensex advanced 1.36% to 56,889.76. The 30-stock index rose to a record 56,958.27 levels in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to 16,931.05, the first ever close above 16,900. In fact, the 50-stock index crossed 16,800 and 16,900 levels for the first ever time and advanced to a record 16,951.50 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.9%. Bharti Airtel Ltd. had the largest increase, rising 4.3%. Today, 43 of 50 shares rose, while 7 fell.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining over 1.5%. Barring S&P BSE Information Technology and S&P BSE Teck, all the other 17 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Telecom gaining over 3.5% and S&P BSE Metal climbing over 2.5%.

The market breadth was skewed in favour of bulls. About 2,215 stocks advanced, 1,096 declined and 186 remained unchanged.

"Dovish commentary from Federal Reserve chairman in Jackson Hole Symposium lifted investors’ sentiments globally. No mention about actual timeframe for reversal of $120 billion monthly asset purchase programme by Jerome Powell and indications of no interest rate hike in the medium term essentially show that taper tantrum is still not in the sight in the near term, which augurs well for global equities. In our view, winding down of asset purchase programme by the Federal Reserve might not happen before November 2021, which is broadly being factored by market", Binod Modi, Head Strategy at Reliance Securities wrote in a note.

Shares of Coal India Ltd. added 3.75% to Rs 143.75 apiece.

• Trading volume was 8.96 million shares, 28% above the 20-day average of 7 million shares for this time of day.

• The company trades at 6.3 times its estimated earnings per share for the coming year.

• Analysts have 21 'buy', 4 'hold' and 3 'sell' recommendations on the stock.

• The overall consensus price of analysts tracked by Bloomberg implied an upside of 20%.

• It's time to raise tariff.

• Recent tariff increase has been received very well.

• Happy to take baby steps to raise tariffs.

• Expect pick up of Tariff, ARPU in the next few months.

• Sees 2X net debt-to-EBITDA as comfort level.

• Company to be more comfortable in its debt profile in 2-3 years.

• Have large monetisable assets.

• See ARPU rising to Rs 200 this financial year.

• Have seen the worst in tariff wars, ARPU contraction.

• Expect digital revenue to rise in the coming quarters.

• India should see three private player scenario in telecom sector.

• Bharti Telecom has no plan to sell more shares in Bharti Airtel.

• Do not see significantly higher capex for 5G.

Axis Bank is planning a dollar-denominated sustainable perpetual bond, following closely on from an unusual hybrid note sold by another Indian lender this month.

Shares of Axis Bank Ltd. added 4.3% to Rs 784.60 apiece after the company initiated the process of issuing of the debt instruments, in the form of Additional Tier 1 Notes in foreign currency. This will be a sustainable bond under the Sustainable Financing Framework of the Bank.

Trading volume was 7.21 million shares, 40% above the 20-day average of 5.15 million shares for this time of the day. The bank trades at 18 ties its estimated earnings per share for the coming year. Analysts have 45 'buy', 7 'hold' and no 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.1%. Shares of Axis added 26.34% in 2021 so far compared to 15.7% gains for NSE Nifty Bank index.

Adani Total Gas Rises for 13th Day

• Shares of Adani Total Gas Ltd. advanced for the 13th straight day, extending the longest winning streak since Nov. 5, 2018.

• Adani Total Gas Ltd has gained a total of 51%during the streak while the Sensex increased 3.9%. Today, the stock rose 1.5% to Rs 1,340.20 apiece.

• The relative strength index on the stock is at 83, indicating that the stock may be overbought.

Adani Trans Rises for 12th Day; Beats Index by 55%

• Shares of Adani Transmission rose for the 12th straight day, on track for the longest winning streak since the period ended June 26, 2020.

• Adani Trans has gained a total of 59% during the streak while the Sensex Index increased 4%. Today, the stock rose 5 percent to Rs 1,505.35 apiece.

• The relative strength index on the stock is at 86, implying that it may be overbought.

Shares of Divi's Laboratories Ltd. added 4% to a 52-week high of Rs 5,110 apiece.

• Trading in the company's call options was double the average.

• Trading volume was 4,74,647 shares, 46% above the 20-day average of 3,26,176 shares for this time of the day.

• The company trades at 53 times its estimated earnings per share for the coming year.

• Analysts have 14 'buy', 3 'hold' and 3 'sell' recommendations on the stock. The overall consensus price of analysts trackedby Bloomberg implied a downside of 0.3%. Fifteen analysts revised the target price of the stock higher over the past month.

• The company's strategic activity over the past 3 months included 8 M&A deals, 11 investments and 1 other deal, according to data compiled by Bloomberg.

Sandhar Technologies leads a rally in Indian automobile companies’ stocks linked to supplying electric vehicle components after a report said Tesla Inc. is in talks with such firms.    

Tesla is seeking electrical, electronic and mechanical components, including instrument panels, windshields, differential brakes, gears and power seats, the Economic Times newspaper reported on Aug. 29, citing people it didn’t identify.

Sandhar Technologies rose as much as 14%; most since May 21.

• Trading volume was 2.8 times the three-month, full-day average; set to extend gains for 2nd day.

Shares of Steel Strips Wheels Ltd. and Tata Steel Long Product Ltd. surged over 3% after the two companies signed a deal for rolling of round bars of various grades for a period of 3 years.

The supplies from Steel Strips Wheels' Saraikela plant will start from October, the company said in an exchange filing. The deal has a supply potential of 50,000 MTs of rolled round bars per annum. These products are intended to target automotive customers in India

Tata Steel has a strategic equity stake in Steel Strips Wheels for 13 yeas. The company said that the agreement with Tata Steel Long Product reinforced the strong confidence of Tata Steel in Steel Strips Wheels to develop long term strategic partnerships.

The relative strength on the stock was 81, suggesting that it may be over bought. Over the past three months, the company's strategic activity included 13 M&A dfeals, 11 investments and 2 other deals, worth Rs 10,840 crore, according to data compiled by Bloomberg.

Shares of Clean Science & Technology Ltd. jumped over 9% to Rs 1,572.50 apiece after the specialty chemicals maker announced its foray into a new series of compounds. Brokerage firm Motilal Oswal initiated coverage on the stock with a ‘buy’ citing the company's emergence as a global leader in most of its product categories catering to polymer inhibitors, superabsorbents, anti-oxidants for the food/feed industry, pharma, home and personal care.

Tech Mahindra Ltd. has issued a clarification on the acquisition of equity shares in AustinGiS. In an exchange filing, Tech Mahindra said that the company, through its wholly owned subsidiary, Tech Mahindra (Americas) Inc. approved the proposal to acquire 13.8% equity shares in AustinGiS.

In an earlier release Friday, Tech Mahindra had stated that the board approved the proposal to acquire 100% stake in Austin GIS and now the company has corrected that statement.

Shares of Tech Mahindra shed over 1% to Rs 1,428.60 apiece. Of the 48 analysts tracking the company, 40 maintained 'buy', 7 maintained 'hold' and 1 maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 6.6%

India's stock benchmarks rose to record highs aided by gains in metals, banking and power stocks, amid positive global cues following Federal Reserve Chairman Jerome Powell's dovish comments that the U.S. central bank would not be in a hurry to hike rates.

The S&P BSE Sensex gained 0.91% to 56,636.97. The 30-stock index had hit a record 56,734.29 in intraday trade. The NSE Nifty 50 advanced nearly 1% to 16,864.55. Nifty 50 also hit a record 16,881.35 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.5%. Tata Steel Ltd. had the largest increase, rising 3.6%.

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining over 1.5%. Barring S&P BSE Information Technology & S&P BSE Teck, all the other 17 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal adding 2.5%.

The market breadth was skewed in favour of bulls. About 2,247 stocks advanced, 902 declined and 188 remained unchanged.

Shares of Deepak Nitrite Ltd. rose 7% to 2,279 apiece. Trading volume was 2.15 million shares, double the 20-day average of 9,26,715 shares for this time of the day.

• Trading in the company's call options totaled 20,915 contracts, compared with the average of 9,111 over the past 20 days.

• The relative strength index on the stock was above 70, indicating it may be overbought.

• Deepak Nitrite trades at 31 times its estimated earnings per share for the coming year.

• Analysts have 6 'buy', 1 'hold' and 2 'sell' recommendations on the stock.

Brokerage firm DAM Capital initiated coverage on Deepak Nitrite on Friday citing its capabilities to tap import substitution opportunities in India's chemical space.

DAM Capital

• Initiates coverage with an 'outperformer' rating, with a price target of Rs 2,635, an implied upside of 26.3%.

• Company remains a front runner in tapping import substitution opportunities in chemicals sector.

• Robust end-user demand and a recovering economy place the company in good stead to realise 'Make in India for the world' dream.

• Track record in commissioning megal-scale projects for complex chemicals augur well for growth prospects.

• Expect the company to post healthy 16.8% revenue and 14.6% EBITDA CAGR, over FY21-24E.

• Phenolics and Fine & Specialty Chemicals segments are likely to be the major growth drivers.

Shares of Granules India Ltd. added 2% to Rs 337.55 apiece after it received marketing approval from Health Canada for Acetaminophen extended-release tablets OTC, 650 mg for the treatment of Arthritis pain. In an exchange filing, Granules India said that this is a step towards global expansion of core molecules and a welcome addition to the company's portfolio.

The drug, which is the bioequivalent of Tylenol extended release 650 tablets, will be manufactured at Granules manufacturing facility located in Gagillapur, Hyderabad.

Of the 8 analysts tracking the company, 6 maintained 'buy', 1 maintained 'hold' and 1 maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 26.2%. The company's strategic activity over the past 3 months included 6 M&A deals, 8 investments and 1 other deal.

Shares of Sumitomo Chemical India Ltd. rose 6% to Rs 424.95 apiece.

Trading volume was 6,68,374 shares, 96% above the 20-day average of 3,40,319 shares for this time of the day.

The company trades at 51 times its estimated earnings per share for the coming year.

Analysts have 7 'buy', 1 'hold' and 3 'sell' recommendations on the stock. 6 analysts have revised the target price higher over the past month while 4 analysts have revised the target price lower.

Yields fell across the India sovereign yield curve in Monday morning trading.

• The 4-year yield fell 2.7bps to 5.291%.

• The 10-year yield fell 1.2bps to 6.239%.

• The 14-year yield fell 3.8bps to 6.794%.

• The 4-year-10-year yield spread was 94.8bps, vs previous close 93.3bps.

Shares of Larsen & Toubro Ltd. advanced nearly 3% to Rs 1,684.95 apiece after the company announced that its construction arm L&T Construction bagged a slew of orders in India and abroad for its various businesses.

• The building and factories business secured an order to construct multilevel parking and advocates chamber for the High Court at Allahabad.

• Power Transmission & Distribution business bagged an order for the turnkey construction of a substation in Saudi Arabia.

• Smart World & Communication business won another smart city project, the company in an exchange filing.

Of the 43 analysts tracking the company, 41 maintained 'buy', 1 maintained 'hold' and 1 maintained 'sell'recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.7%.

Shares of Max Healthcare Institute Ltd. added 4.74% to Rs 351 apiece after the company acquired exclusive rights to aid development and provide medical services to a proposed 500 bed hospital in South Delhi.

The hospital will be built on a 3.5 acres of a prime land parcel in South Delhi through its wholly owned subsidiary, Alps Hospital Ltd., the company said in an exchange filing post market hours Friday. The first phase of the hospital is expected to be commissioned in 2024. The transaction is expected to allow Max Network of Hospitals to expand, integrate and streamline their services.

Of the five analysts, 4 maintained 'buy' and 1 maintained 'hold' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5%.

Shares of Man Infraconstruction Ltd. added nearly 6% to Rs 69.75 apiece after the company informed exchanges that it has been appointed as Developer by Maitri Part Cooperative Housing Society Ltd. in Mumbai to undertake redevelopment work of its plot have an area of 9 acre.

Man Infra expects to complete the project in about 3.5 years and also generate total revenue of over Rs 3,000 crore. Shares of Man Infra advanced 105% in 2021 compared to 19.5% for Sensex.

Shares of Mahindra & Mahindra Ltd. rose over 2% to Rs 792.85 apiece after the company announced post market hours Friday that its wholly owned subsidiary Mahindra Defence System Ltd. won a major contract worth Rs 1,349.95 crore from the Ministry of Defence. The contract concerns the manufacture of Integrated Anti-Submarine Warfare Defence Suite (IADS) for moder warships of Indian navy. The contract was award after competitive bids from many Indian companies were invited through open tender and after detailed trials. In an exchange filing, M&M said that its subsidiary would be supplying 14 IADS systems for Indian navy warships.

Of the 41 analysts tracking the company, 36 maintained 'buy' and 5 maintained 'sell' recommendations. The overall consensus target price of analysts tracked by Bloomberg implied an upside of 20.2%.

India's stock benchmarks opened at record highs, amid positive global cues following Federal Reserve Chairman Jerome Powell's dovish comments that the U.S. central bank would not be in a hurry to hike rates.

The S&P BSE Sensex rose 0.70% to a record 56,520.31. The NSE Nifty 50 advanced by similar magnitude to 16,825.10, a record high for the 50-stock index. Reliance Industries Ltd. contributed the most to the index gain, increasing 1.3%. Hindalco Industries Ltd. had the largest increase, rising 2.8%.

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining 1%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal adding 1.7%.

The market breadth was skewed in favour of bulls. About 1,883 stocks advanced, 513 declined and 105 remained unchanged.

India’s rupee may advance for a third straight day along with most other emerging Asian currencies as risk sentiment improved after Fed Chair Jerome Powell’s comments on Friday didn’t contain any hawkish surprise.

• USD/INR fell 0.7% to 73.6875 on Friday to a two-month low after the U.S. central bank stepped away from buying dollar inflows.

• Rupee is likely to trade with a neutral to bullish bias

• 10-year yields rose by 1bp to 6.26% on Friday

• Global Funds Sell Net Rs 779 crore of Indian Stocks Friday: NSE

• They bought Rs 326 crore of sovereign bonds under limits available to foreign investors, and added Rs 30 crore of corporate debt

• State-run banks sold Rs 885 crore of sovereign bonds on Aug. 27: CCIL data. Foreign banks sold Rs 434 crore.

Axis Bank is planning a dollar-denominated sustainable perpetual bond, following closely on from an unusual hybrid note sold by another Indian lender this month. 

If concluded, deal would be the second dollar perpetual by an Indian bank this year, according to Bloomberg-compiled data.

In an exchange filing, Axis Bank said it has initiated the process of issuing of the debt instruments, in the form of Additional Tier 1 Notes in foreign currency. This will be a sustainable bond under the Sustainable Financing Framework of the Bank.

Asian stocks were steady on Monday and treasuries held an advance as traders weighed Jerome Powell’s signal that pandemic-era Federal Reserve policy support will be withdrawn cautiously and gradually.

Shares gained in Japan, slipped in Hong Kong and fluctuated in China, where Beijing’s regulatory broadside remains in focus. U.S. futures were steady after a record Wall Street close in the wake of Chair Powell’s Jackson Hole speech. Powell said the Fed may start paring bond purchases this year but is in no hurry to raise interest rates and will be guided by data on Covid-19 risks.

Powell didn’t give a specific timeline for scaling back stimulus. Traders are awaiting U.S. jobs data this week to assess whether the economic recovery merits an earlier tapering. Strong figures could extend the first weekly steepening of the Treasury yield curve since July. The dollar held a drop.

SGX Nifty 50 Index futures for September delivery rise 0.5% to 16,816, while MSCI AC Asia Pacific Index adds 0.5% to 198.35. The NSE Nifty 50 closed 0.4% higher at 16,705.2 on Friday.

The latest step in China’s curbs on private industry is a two-month campaign to crack down on commercial platforms and social media accounts that post finance-related information deemed economically harmful.

Central banks are seeking to reduce monetary policy support in part to keep a lid on inflation, while at the same time nurturing economic recoveries facing challenges from the delta virus strain. The fast-spreading variant has dealt a bigger blow to reopening in Asia because of lagging vaccinations.

Elsewhere, gold held gains and Bitcoin was trading around $49,000.

Back home, Divi’s Laboratories, Marico are among the companies to hold annual shareholders’ meeting; Jindal Steel & Power mulls raising of funds including in foreign currency, to be issued in one or more tranches; Bharti Airtel has announced to raise $2.85 billion via rights issue.