Sensex Up 250 Points, Nifty Above 16,300; HDFC & Kotak Mahindra Bank Top Gainers

Tue, 10 Aug 09:30 am

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Asian share markets are trading mixed after a soft performance on Wall Street and concerns over the spread of the Delta variant dented sentiment.

The Hang Seng and the Nikkei are trading higher by 0.1%. The Shanghai Composite is trading down by 0.2%.

In US stock markets, Wall Street indices ended a wobbly day lower with energy companies logging some of the biggest losses as crude oil prices took another turn lower.

The Dow Jones Industrial Average fell 0.3% while the Nasdaq Composite gained 0.2%.

Back home, Indian share markets have opened on a positive note, following the trend on SGX Nifty.

Market participants are tracking shares of Zomato, Coal India, Siemens and CAMS as these companies are scheduled to announce their quarterly earnings today.

The BSE Sensex is trading up by 256 points. Meanwhile, the NSE Nifty is trading higher by 48 points.

HDFC and Kotak Mahindra Bank are among the top gainers today. Power Grid, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.4%. The BSE Small Cap index is trading higher by 0.3%.

Sectoral indices are trading mixed with stocks in the consumer durables sector and finance sector witnessing buying interest.

FMCG stocks, on the other hand, are trading in red.

Shares of Deepak Nitrite and Tejas Networks hit their 52-week highs today.

The rupee is trading at 74.38 against the US$.

Gold prices are trading down by 1% at Rs 46,150 per 10 grams.

Meanwhile, silver prices are trading down by 3.4% at Rs 62,766 per kg.

Crude oil prices rose today, edging up from a three-week low in the previous session, but gains are likely to be limited on worries that rising Covid-19 cases and restrictions in China will dent fuel demand.

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In latest developments from the IPO space, the initial public offering (IPO) of online auto classified platform CarTrade Tech was subscribed 41% on Monday, the first day of subscription.

The Rs 30-bn IPO received bids for 53,00,406 shares against 1,29,72,552 shares on offer, as per exchanges data.

The retail category was subscribed 80%, non-institutional investors 3% and qualified institutional buyers (QIBs) 1%.

The IPO is of up to 18,532,216 equity shares and is in a price range of Rs 1,585-1,618 per share.

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The company, last week on Friday, raised Rs 9 bn from anchor investors.

Founded in 2009, CarTrade Tech is backed by marquee investors Warburg Pincus, Temasek, JPMorgan, and March Capital.

CarTrade is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands - CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz.

In other news from the IPO space, the public offer of speciality chemicals producer Sanmar Chemplast is all set to open for subscription today.

The company has four manufacturing facilities in Tamil Nadu.

This is not the first time that Chemplast Sanmar is raising money from the primary market. It was delisted nearly a decade ago from stock exchanges in June 2012.

It is the largest manufacturer of specialty paste PVC resins in India in terms of installed production capacity. The company is eyeing to raise about Rs 38.5 bn from the primary market.

The price band has been fixed at Rs 530-541.

How these IPOs sail through remains to be seen.

Moving on to stock specific news...

HDFC Bank is among the top buzzing stocks today.

HDFC Bank has received about Rs 300 bn in prepayments through the June quarter, primarily from companies in the commodities and infrastructure sectors.

This is a clear sign of robust economic recovery and sustained deleveraging by top-rated Indian corporates.

People aware of the matter said that HDFC Bank has not seen such a high level of prepayment in the recent past. Other banks also obtained prepayments, but the scale is not that high because of lower business volumes.

As per sources, in the April-June quarter, AAA or AA-rated companies sought to deleverage as they recorded solid cash balances.

Cash flows were robust at commodity companies because of record iron ore or aluminium prices, boosting net profits.

HDFC Bank is now expecting renewed credit demand from these companies in a quarter or two, with the pace of economic recovery quickening and fueling the need for more funds.

In the recently concluded quarter, HDFC Bank expanded its corporate loans in excess of 10% to about Rs 3.15 lakh crore.

About four years ago, the book size was about Rs 1 lakh crore.

HDFC Bank is increasingly leaning toward companies, with the franchise built around individual consumption pushing credit to deleveraged corporates after Covid-induced job losses and wage cuts raised the risk perception of retail borrowers.

HDFC Bank share price has opened the day up by 0.2%.

Speaking of HDFC Bank, have a look at the chart below to see how the private lender has performed over the past year.

Shares of HDFC Bank have gained 43% as compared to 42% gains in BSE Sensex.

At the current price of Rs 1,506, the bank commands a marketcap of Rs 8,327.8 bn.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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