Live: Sensex, Nifty Advance; Max Healthcare Up 5% On Listing
Markets At 10:10 A.M.
- Benchmark indices off opening highs
- Nifty up 0.7% at 11,392
- Sensex up 0.7% at 38,484
- Nifty Bank up 1.3% at 22,278
- Nifty Midcap Index up 1%
- Nifty Smallcap Index up 1.2%
- India Volatility Index down 3.8% at 19.83
- Nifty PSU Bank is the top sectoral gainer; up 2.3%
- Nifty Metal, Nifty Pharma gain over 1% each
- Nifty Realty Index gains 1%
- Nifty Media is the only sectoral laggard; down 0.5%
- Power Grid is the top Nifty gainer; up 3.3%
- Zee Entertainment is the top Nifty laggard; down 1.8%
- 1,366 stocks on the NSE trade with gains while 325 decline
Money Market Update
The rupee has opened with gains in today's session after declining for the second straight day on Thursday.
The currency opened at 74.96 against the U.S. Dollar as compared to Thursday's close of 75.03.
Traders in the bond market will watch out for the sale of dated securities worth Rs 30,000 crore.
In the minutes of the previous MPC meeting, RBI Governor Shaktikanta Das said that the central bank should wait for more time for the existing rate cuts to seep into the system, citing the uncertain inflation outlook.
Brokerage Reaction: State Bank of India
Brokerage firm CLSA in a note today said that India's largest lender presents a deep value opportunity. It maintained its buy rating on the stock and raised its price target to Rs 310 from the earlier Rs 270.
CLSA highlighted five reasons for its buy recommendation:
- Better positioned on asset quality post Covid-19, driven by higher share of PSUs in the loan book.
- Able to defend / gain market share versus private banks.
- Yes Bank's bailout was well structured - balancing national and minority interests.
- Subsidiaries of SBI are best in class and should continue to remain steady compounders.
- Valuations at 0.3x June-2022 book are undemanding
Shares gained as much as 3.3% to Rs 201.25, and is the top performing stock on the Nifty 50 index.
Coronavirus India Update
- Second straight day of close to 70,000 new cases for India
- 68,898 new cases reported in the last 24 hours
- Total confirmed cases now at 29,05,823
- Active cases at 6,92,028
- Patients cured / discharged / migrated at 21,58,946
- Death toll rises to 54,849
- 983 deaths reported in the last 24 hours
- 62,282 patients recovered in the last 24 hours
Nifty's New Entrants: Divi's Laboratories & SBI Life Insurance
The National Stock Exchange announced its bi-annual rejig of Nifty's indices. Divi's Laboratories and SBI Life Insurance will now be part of the Nifty 50 index from September 25.
As per a note from Edelweiss, Divi's Laboratories is likely to have a 0.83% weightage on the index with potential inflows of $99.4 million while SBI Life is likely to have a 0.69% weightage on the index with potential inflows of $83 million.
Shares of Divi's Labs gained as much as 3.7% to an all-time high of Rs 3,307. The stock is up for the fifth straight day.
Shares of SBI Life gained as much as 4.3% to Rs 889.8 and has gained in four out of the last five trading sessions.