Sensex and Nifty ended with gains for the second day straight.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic benchmark indices gained for the second day straight. S&P BSE Sensex opened flat and witnessed a rocky morning, only gain momentum and finish the day’s trade 258 points higher. The Nifty 50 managed to breach the 11,600 mark on closing basis. Mahindra & Mahindra, Bajaj Auto, Sun Pharma and Bajaj Auto were the top Sensex gainers. Banking stocks like Axis Bank, SBI, and IndusInd Bank ended with losses were. BSE Midcap and Small cap indices were up rallying but failed to outperform benchmarks today. The Nifty Smallcap 50 ended flat but with a positive bias.
In the month of August, India’s exports stood at $22.70 billion, down from $23.6 billion in the month of July. The trade deficit for August this year was estimated at $6.77 billion, against $4.8 billion in July 2020 and $13.86 billion in August 2019. This slip in exports comes at a time as India is stepping out of the strict nation-wide lockdown to control the spread of the coronavirus pandemic. A number of other macro indicators have, however, hinted at a recovery in the Indian economy.
Highlights
Domestic benchmark indices moved up for the second day straight as they ended with gains on Wednesday. Nifty 50 managed to breach the 11,600 mark on closing basis while Sensex was up 258 points led by auto stocks.
India has been preferred by Foreign Institutional Investors (FII) over the past few months, as domestic equity markets rose giving investors a viable opportunity to invest. In the month of August, FII inflows reached a total of Rs $6.3 billion, while domestic institutional investors (DII) pulled $0.6 billion away from domestic markets. With such massive inflows, MSCI India is now trading at a premium valuation when compared to emerging markets, said a report by global brokerage and research firm, Bank Of America. Now, this premium valuation could result in near term consolidation for domestic stocks and a slow down in FII flows.
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Automobile companies shares were leading the gainers on BSE Sensex, rallying up to 6 per cent on Wednesday. BSE Auto index gained 2.25 per cent in today’s trade led by Mahindra & Mahindra shares which soared 5.8 per cent to Rs 649.45 apiece. It was followed by Bajaj-Auto which rose 3.36 per cent to day’s high of Rs 3,039.85. Similarly, Tata Motors shares jumped over 4 per cent to Rs 154.25 apiece.
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In the last hour of Wednesday's trading session, Sensex wa up over 200 points while the Nifty 50 was just shy of the 11,600 mark. Auto stocks maintained their bullish momentum.
CAMS IPO will hit the primary market on Monday, September 21. The firm has set the price band for the issue at Rs 1,229-1,230 per share on September 16. Nomura is among the book running lead managers to the issue.
Subsequent to the Supreme Court ruling on the AGR case, tariff hikes and a fund raising by Vodafone Idea (VIL) will become important for the company to pay off its opex and capex and to meet its repayment obligations (including financial debt, AGR and spectrum dues). VILhas lost 9ppt of revenue market share in the last eight quarters, leading to gains for Jio and Airtel; we expect Airtel and Jio to gain another 5ppt by the end of F2021~ Morgan Stanley
The Rs 600-crore Route Mobile IPO received a good response, subscribing over 74 times on the final day of the bidding. The cloud communications service provider, which was open for subscription from September 9-11, in the price band of Rs 345-350, received bids for over 89 crore shares as against the total issue size of 1.21 crore shares. The company is expected to finalise the basis of allotment today.
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Homegrown alternative to massively popular TikTok — ShareChat — has made its second acquisition in less than a month as the company looks to ramp up its digital content creation. “The acquisition will help ShareChat and Moj to strengthen their efforts towards building a better content ecosystem, establishing a stronger creator fraternity, and augmenting their advertising solutions for brands,” the company announced in a statement on Wednesday. However, ShareChat hasn’t divulged the details of the deal size.
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The Indo-China border skirmish is keeping the USDINR spot afloat, also, RBI is seen protecting the fall in spot. The USDINR spot has not broken the crucial resistance of 73.75, on the subdued dollar ahead of today's Fed outcome. We don't expect any changes in tonight's monetary policy but the main focus will be on details over measures to boost economic growth. If the Fed sounds less dovish than expected while providing details over average inflation targeting, then we can expect an uptick in dollar index and further rise in USDINR spot. Consistent trading above 73.75 will open doors for 74 and above levels with 73.20 being the crucial support: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
Mukes Ambani's Reliance Industries now has a market capitalization of Rs 15.84 lakh crore. While the partly paid shares of the oil-to-telecom major have a market capitalization of Rs 61,000 crore. The Share price of RIL was up over 1% to trade at a fresh 52-week high.
After subscribing to Happiest Minds Technologies Initial Public Offering (IPO) 151 times, Dalal Street now eagerly awaits the primary market debut of the Bangalore based information Technology (IT) giant. Grey market participants say that the stock could list with massive gains, and even double the price band at which investors have subscribed to the IPO. “Grey market premium for Happiest Minds is above Rs 140. This is an indicative rate, pointing towards what the listing price could be,” Narottam Dharawat, founder, Dharawat Securities told Financial Express Online. The Rs 700 crore IPO of Happiest Minds was the best performing public issue of this fiscal year.
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The BSE Midcap and Smallcap indices have lost their lead over the benchmark BSE Sensex as it gained momentum and jumped 170 points at 1 PM. BSE Midcap was up 0.20% while the smallcap index was up 0.13%. Sensex was trading 0.43% higher.
"IGL has ~75% of its volumes coming from CNG. This segment led growth for the last couple of years, led by the proliferation of CNG stations and higher conversions. However, opening up of schools and normalization of public transportation (for CNG) and commercial space like malls/restaurants (for PNG) may take more time. The stock trades at around 24.4x FY22 EPS of INR17.2 and EV/EBITDA of 15.1x in FY22. We value the company at 24x FY22 adj. EPS of INR17 and add value from JV to arrive at target price of INR470. Maintain Neutral," said Motilal Oswal
Sectoral indices on the National Stock Exchange were trading mixed at 12:20 PM. Nifty IT, Nifty Bank, Nifty Private Bank, Nifty financial Services, and Nifty media were trading with losses. Nifty Pharam, Media, FMCG, Metal were trading with gains.
Mindspace REIT’s (M-REIT) completed and diversified portfolio of 23m sqft with ~92% committed occupancy offers strong visibility on distribution (~6.8% for FY22ii) along with resilient >95% rental collections through the past few months, despite Covid-19. While new-leasing & rental growth is expected to remain muted in the near term, we see longterm drivers for office-space demand in India as robust, and expect M-REIT to deliver a steady double-digit total return, over time. M-REIT distribution is tax efficient; further, its balance sheet is healthy enough to tap into growth opportunities, with consolidation likely to pick up post the pandemic. We initiate coverage on M-REIT with a BUY rating. ~ IIFL Securities
Lakshmi Vilas Bank share price was locked in 10 per cent upper circuit at Rs 22.35 apiece on BSE after the bank informed that the mutual due diligence for the merger with Clix Group was substantially complete. The bank informed that under the non-binding letter of intent (LOI), the proposed amalgamation of Clix Group with Lakshmi Vilas Bank is subject to completion of mutual due-diligence, regulatory and other customary approvals.
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Private sector lender Yes Bank is back on Kotak Securities’ coverage radar but the outlook for the troubled bank remains grim. Kotak Securities, re-initiating the coverage of the bank, acknowledged the bank’s efforts to recover from issues that marred its operations earlier this year, but the brokerage went only as far as giving a ‘Sell’ call with a target price of Rs 10 per share. Yes Bank shares were trading down 2% on Wednesday morning at Rs 14.27 per share. Shares of the bank are flat for the last one month, dancing between gains and losses on a regular basis.
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The health of India’s shadow banks remained resilient in August, suggesting that record stimulus steps by the nation’s authorities are helping the crisis-hit sector ride out the pandemic. Premiums on non-bank lenders’ bonds narrowed to a two-year low, according to an index of AAA rated five-year notes. Three other indicators compiled by Bloomberg, covering areas including liquidity and share performance, stayed steady from the previous month, with two at levels indicating strength.
Yoshihide Suga has been selected to lead Japan, after Shinzo Abe decided to step down due to his ailing health. The Priliament Chose Yoshihide Suga to lead the country on Wedneday. He is an ally of Shinzo Abe and might continue his predecessor's policies.
COMEX gold trades mixed near $1965/oz after a 0.1% gain yesterday. Gold has turned choppy amid positioning ahead of FOMC decision today. ETF outflows, however, show weaker investor interest. Gold may remain sideways to positive ahead of Fed decision amid expectations that the central bank may emphasize on keeping interest rate low for a long time: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Sterlite Technologies share price jumped over 5 per cent to Rs 165.55 apiece in early trade on BSE after the company announced a partnership with telecom giant Airtel to build a modern optical fibre network for Airtel across 10 telecom circles. While Bharti Airtel shares too gained nearly one per cent to Rs 490.50 apiece in today’s trade.
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“Yesterday MCX Crude oil prices sharply increases by 2.91% and closed at 2828 levels and WTI crude oil prices were also increased by 3.03% and closed at $38.39 per barrel. This sharply rally due to Hurricane Sally. Hurricane Sally is set to make landfall along the gulf coast, the major hub for oil refineries in the US. Around 147 offshore platforms were evacuated due to the hurricane. U.S. crude oil inventories fell by 9.5 million barrels last week, although gasoline inventories increased, data from industry group the American Petroleum Institute showed on Tuesday. Currently WTI is trading at $38.92 per barrel and Brent crude oil is trading at $41.11 per barrel. Hurricane season, geopolitical tension and falling inventories supports the crude oil prices in short term. So as of today we are recommending to buy in crude oil on a dip. Traders can go for buy in mcx crude oil at 2800 levels, with the stop loss of 2750, for the target of 2900 levels," said Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking.
Domestic benchmark indices witnessed a rocky start to Wednesday’s trading session as the benchmark Sensex moved between gains and losses after opening over 50 points higher. The 50-stock Nifty, on the other hand, was trading below 11,550. Analysts believe Nifty 50 needs to trade above the 11,550 levels to attract renewed buying interest. Volatility was down in the red but still above 20 levels. On the BSE, Midcap and Smallcap stocks were up as the indices moved higher, beating the benchmark. But on the NSE, the Nifty Smallcap 50 was down in the red.
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Sensex opened 50 points higher and minutes later extended those gains marginally. Nifty 50, on the other hand was up in the green but did not breah the crucially important 11,550 mark. While midcap indices on BSE and NSE were up, the Nifty Smallcap 50 was down in the red while BSE Smallcap gained.
S&P BSE Sensex zoomed 166 points in the pre-opening session on Wednesday monring. IndusInd Bank was leading the pack with gains while Axis Bank was down in the red. SGX Nifty is still down 21 points.
Nifty futures were trading 40.80 points or 0.35 per cent down at 11,493.20 on Singaporean Exchange, suggesting a gap-down start for BSE Sensex and Nifty 50 on Wednesday. Investors will watch Defence Minister Rajnath Singh speech in Parliament on India-China border tension, along with RBI Governor Shaktikanta Das address to FICCI members.
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"Going ahead, the market is likely to consolidate in near term with positive bias. All eyes would be on Central Banks globally as US Fed’s 2-day policy meet begins today while its peers European Central Bank, Bank of England and Japan would meet later this week. Investors would also be looking at the developments around the Covid vaccine and UK Vote on Brexit. Mid-cap/Small-cap companies have been relative outperformers in CY20 and the momentum may continue in the near term. Thus any weakness in the market should be looked as a buying opportunity to add quality stocks in the portfolio as the overall long term market trend remains positive.Technically, Nifty has to hold above 11450 zones, to witness an up move towards 11800 zones while support exists at 11350 zones," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Domestic equity market benchmarks BSE Sensex and Nifty 50 were starting at a negative opening on Wednesday taking cues from mixed Asian markets. Market participants will keenly watch the two-day US Federal Reserve meeting which is going to end today. Besides, newsflow on the India-China front, developments around COVID-19 vaccine, trends in coronavirus cases, oil prices and other global cues will set the market direction for today. Investors will also watch RBI Governor’s address to Ficci.
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Finance minister Nirmala Sitharaman on Tuesday introduced in the Rajya Sabha a Bill to replace an ordinance that was promulgated in June to suspend insolvency proceedings for up to one year against fresh Covid-related default from March 25. The move was aimed at providing breather to thousands of firms battered by the pandemic.
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With SEBI making an unprecedented move last Friday as it asked multi cap schemes to be “true to label” and allocate a minimum of 25% to large cap, midcap, and small cap stocks, a number of market participants have begun compiling a list of stocks that could benefit. Largely, these include midcap and smallcap stocks. However, with most of multi cap schemes that are currently playing in the market having massive equity exposure to large cap stocks, the possibility of them reclassifying as large cap schemes can not be ruled out. Such a reclassification would not force them to buy what they have evidently been avoiding so far.
After the National Stock Exchange gave brokerage firms an expemtion from penalty levied on non-collection of margin for trades, the said fine is set to resume from today. Under the new trading rules, any Buy or Sell order will require the brokerage firm to collect a 20% upfront margin.
Reliance Industries (RIL), which was less than half the size of all state-owned listed firms put together at the beginning of the year, has now surpassed the combined market valuation of these behemoths. Shares of the country’s most valuable company have risen 54.6% since January 2020, following its fundraising spree for its digital and retail arms.
After continuously rising since May, India’s exports fell for the first time in the month of August. Exports in August 2020 were $22.70 billion, which was $23.6 billion in July 2020 and $25.9 billion in August 2019, according to the Ministry of Commerce & Industry. The exports of cashew (-47.61 per cent), gems & jewellery (-43.28 per cent), and petroleum products (-39.91 per cent), took the maximum hit in August. The fall in exports and the rise in imports in comparison to July 2020, have contributed to expanding the fiscal deficit to a five-month high in the month of August.