Sensex ends 629 points higher, Nifty above 11,400; banks, financial stocks lead12 min read . Updated: 01 Oct 2020, 03:40 PM IST Devansh Sharma
- India's benchmark equity indices settled higher on Thursday, as government eased more restrictions on the business activity. Stronger global peers also boosted the investor sentiment.
Welcome to the Mint live blog. Track this space for latest stock market updates.
India's benchmark equity indices settled higher on Thursday, as government eased more restrictions on the business activity. Stronger global peers also boosted the investor sentiment.
Sensex ended at 38,697.05, up 629.12 points or 1.65%, while Nifty closed 169.40 points or 1.51% higher at 11,416.95.
IndusInd Bank, closing 12.5% higher, was the top Sensex gainer followed by Bajaj Finance, Axis Bank, ICICI Bank and TechM. ONGC, ITC, NTPC, Titan and RIL were among the laggards. Of 30 Sensex shares 25 closed in the green.
Top gainers on BSE Bankex
Sun Pharma’s investor fortunes hinge on speciality product ramp-up
Sun Pharmaceuticals stock has lagged the Nifty Pharma index over the past two months, slipping about 6% against the index’s gains of about 5% during this period.
One reason for the stock’s underperformance is slow growth of its speciality product sales. With heavy investments required in speciality products, the sales dip of 38% sequentially in Q1 had an impact on the company’s performance. But the Street is pinning hopes on a ramp-up to drive its earnings. (Full report)
All sectoral indices on NSE in the green
Top gainers on Nifty Auto
The rupee strengthened by 63 paise and closed for the day at 73.13 (provisional) against the US dollar on Thursday, as positive domestic equities and weak American currency buoyed investor sentiments.
At the interbank forex market, the domestic unit opened at 73.60 against the US dollar, then gained further ground and finally settled at 73.13, registering a rise of 63 paise over its previous close.
On Wednesday, the rupee closed at 73.76 against the US dollar.
SBI sees govt overshooting fiscal deficit numbers
The Union government is likely to overshoot the fiscal deficit numbers and the consolidated fiscal deficit of the Centre and the states is expected to touch 13% of GDP during the current fiscal, says a report.
According to the SBI Research report, the country's nominal GDP growth is expected to decline below the FY19 levels this year.
According to the data released by CGA, fiscal deficit, the gap between expenditure and revenue, during April-August was at 109.3% of the annual target estimated in the Budget. In absolute terms, the fiscal deficit was at ₹8,70,347 crore.
"Given these numbers (fiscal deficit had touched 109.3% by August already at ₹8.7 lakh crore), sticking to the budgeted borrowing numbers of ( ₹12 lakh crore) indicates large expenditure cuts that will be clearly inimical to growth," the report said.
Petrol demand returns to pre-covid-19 levels, diesel sales inching up
India's petrol sales rose 2% in September - the first increase since the country's lockdown in late March - signalling demand returning to pre-covid-19 levels.
Diesel sales continue to be below normal but have shown a month-on-month increase, according to provisional data from state-owned fuel retailers who control 90% of the market.
Petrol sales in September rose 2% year-on-year and were up 10.5% over the previous month.
Diesel sales continue to be in the negative territory, with demand falling 7% year-on-year. But the demand was 22% higher over August 2020.
Investors richer by ₹1.7 trillion
Benchmark share indices rallied over 1.5% on Thursday as government lifted more restrictions in Unlock 5.0 phase. Led by this market capitalisation of BSE listed firm increased to ₹156.91 trillion from ₹155.24 trillion.
Geojit Financial Services puts 'buy' on ZEEL with a target price of ₹245
"ZEEL’s revenue during the quarter fell by 34.7% YoY to ₹1,312cr, impacted by significant decline in advertising revenues by 64.5% YoY as the business took a hit during the months of March and April owing to pandemic. On the contrary, subscription revenues grew by 5% YoY, aided by surge in online viewers. Gradual recovery in Ad and Subscription revenues on account of upcoming festivities should aid top-line growth in H2FY21. With rise in viewership and arrival of new content, we expect steady improvements in ZEEL’s performance in the coming quarters. We thereby upgrade our rating to BUY with a revised target price of ₹245, based on 15x FY22 Adj. EPS," the brokerage said.
New investments decline again in September quarter, dashing hopes of quick revival
After reaching a 16-year low in the June-ended quarter, new project investments fell further in the September quarter, latest numbers from the project-tracking database of the Centre for Monitoring Indian Economy (CMIE) shows. (Full report)
PVR, Inox Leisure top gainers on Nifty Media
Dr Reddy's Laboratories launches Cinacalcet Tablets in the US market
Dr Reddy’s Laboratories Ltd today announced the launch of Cinacalcet Tablets, a therapeutic equivalent generic version of Sensipar (cinacalcet) Tablets, approved by the US Food and Drug Administration (USFDA).
The Sensipar brand and generic market had US sales of approximately $312 million MAT for the most recent twelve months ending in July 2020 according to IQVIA Health*.
Brief relief on FY21 borrowing but bond market frets on medium term fiscal path
India’s central government has a poor history of bringing down its market borrowing. In absolute terms, the central government’s borrowing through bonds has come down only once in the last two decades. That was in FY19 when the government borrowed ₹5.9 trillion on a gross basis from the bond market, marginally down from ₹6.3 trillion borrowed in FY18. (Full report)
Mahindra & Mahindra registers a 6% growth in UVs in September 2020
In the passenger vehicles segment (which includes UVs, Cars and Vans), Mahindra sold 14,857 vehicles in September 2020, compared to 14,333 vehicles in September 2019, registering a growth of 4%.
In the commercial vehicles segment, the company sold 18,907 vehicles in September 2020, as against 18,872 vehicles in September 2019.
Exports for the month of September 2020 were at 1,569 vehicles.
The company’s overall automotive sales (Domestic+Exports) stood at 35,920 vehicles in September 2020, compared to 43,343 vehicles during September 2019.
ICICI Bank, HDFC duo, Kotak Bank lift Sensex by 600 points
BSE MidCap up nearly 1%
Shriram transport, M&M Finance and RBL Bank top gainers on the MidCap index
Unlock 5.0 brightens picture for PVR, Inox stocks, but pre-covid levels far away
After months of despair, this week has brought good news for multiplexes. First, West Bengal permitted cinemas to reopen. Now, the Ministry of Home Affairs has said multiplexes can restart operations from 15 October with 50% of their seating capacity. Unsurprisingly, investors are elated. Shares of PVR Ltd and Inox Leisure Ltd have jumped almost 10% on NSE in early trade on Thursday. Overall, these stocks have increased 15-20% so far this week. (Full report)
BSE Telecom up 1.65%
The Telecom Regulatory Authority of India has released amended rules for international mobile roaming, mandating telecom operators to ensure such services are deactivated by default and start only when consumers ask for it. Once activated, the services can be discontinued on consumers’ request, the telecom regulator said.
Dhanlaxmi Bank up 1%
Shareholders of Dhanlaxmi Bank on Wednesday ousted Managing Director and Chief Executive Officer Sunil Gurbaxani, little over seven months after he assumed charge of the lender.
Steel Strips Wheels up 2.5%
Steel Strips Wheels Ltd has confirmed export orders of nearly 37,000 wheels for EU trailer market, to be executed in the month of December from its Chennai plant.
Maruti Suzuki reports 33.4% increase wholesale dispatches in September
Aided by a quick recovery in demand for entry-level cars, hatchbacks and utility vehicles, Maruti Suzuki India Ltd on Thursday reported a 33.4% year-on-year growth in domestic wholesale during September. The country’s largest passenger vehicle manufacturer sold 150040 units during the last month versus 112500 units in September 2019.
Tokyo Stock Exchange suspends day's trade after worst-ever system glitch
The Tokyo Stock Exchange suspended share trading for the full day on Thursday as a glitch in its electronic trading system caused the worst outage ever suffered by the world's third-largest stock market.
The shutdown frustrated investors looking to buy back shares after the first US presidential debate, and could tarnish the exchange's credibility just as new Prime Minister Yoshihide Suga makes digitalisation a top priority and Tokyo looks to replace Hong Kong as Asia's financial hub.
The exchange blamed the outage on a hardware problem at its "Arrowhead" trading system, but added that it found no evidence of unauthorised access. It was the worst glitch since the exchange switched to all-electronic trading in 1999, it said. (Reuters)
Key tax changes to kick in today
Several key direct and indirect tax changes will kick in from 1 October that businesses and individual taxpayers need to take note of. These are provisions meant to gather data about transactions, spending patterns and fund flow across borders as the tax administration increasingly becomes data and tech-driven. Mint takes a look at the changes. (Full report)
PMI manufacturing expands to highest level in eight and half years in Sept
India’s manufacturing output expanded to its highest level in over eight and half years in September supported by accelerated increases in new orders and production, signaling faster turnaround in industrial activity following gradual easing of lockdown curbs, starting June, according to a private survey.
According to data analytics firm IHS Markit, India's purchasing managers' index (PMI) for manufacturing rose to 56.8 in September from 52 in August, the highest mark since January 2012. A figure above 50 indicates expansion, while a sub-50 print signals contraction.
PVR up 9%, Inox Leisure gains 8%
The Union Home Ministry has issued new guidelines for permitting more activities in areas outside the containment zones that include opening up cinemas, theatres and multiplexes with up to 50% of their seating capacity from October 15.
Punjab National Bank up 0.18%
State-owned Punjab National Bank has declared its exposure of ₹1,203.26 crore to Sintex Industries Ltd (SIL) as fraud. Once an account is declared as fraud-hit, banks need to set aside 100% of outstanding loans as provisions either in one go or over four quarters, according to the banking regulator's rules. In this case, PNB said it has made provisions of ₹215.21 crore.
Rupee surges 20 paise to 73.56 against US dollar in early trade.
Hero MotoCorp announces new appointments to strengthen its leadership team
Air Chief Marshal (Retd.) B. S. Dhanoa has been appointed as a Non-Executive and Independent Director on the Board of the Company, effective October 1, 2020.
Sanjay Bhan, who had spent over three decades across sales, after-sales, marketing and parts business at Hero MotoCorp, has returned as Head of Global Business (GB) and will play a key role in the rapid expansion and consolidation of Hero in the international markets.
CAMS makes stock markets debut at 23% premium over issue price
Shares of Computer Age Management Services (CAMS) were listed at ₹1518, a 23.41% premium over its issue price of ₹1230 a piece. The issue with a price band of ₹1,229-1,230 apiece open for subscription during 21-23 September, was oversubscribed 46.99 times.
Chemcon Speciality Chemicals lists at 115% premium over issue price
Shares of Chemcon Speciality Chemicals Limited listed on the stock exchanges at ₹731, a premium of 115% over its issue price of ₹340 on Thursday. With a price band at ₹338- ₹340 per share for its initial public offering, it was oversubscribed ₹149.30 times. The issue was open for subscription during 21-23 September.
"We are at a fulcrum point - trading above 11350. It is imperative the markets close above this level for the bulls to take over. From here, we can achieve 11600 and then 11800. If we are unable to close past the 11350 mark and make a U turn, we could drop back to 10700-10800," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Adani Green Energy up 1.4%
Adani Green Energy Limited (AGEL), today announced that it has completed the acquisition of 205 MW operating solar assets from Essel Green Energy Private Limited (EGEPL) and Essel Infra projects Limited (EIL). The assets are located in Punjab, Karnataka and Uttar Pradesh. All the assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 21 years. The acquired assets will be held 100% by Adani Renewable Energy Holding Ten Limited, a 100% subsidiary of AGEL.
Escorts falls nearly 4%
Escorts Ltd Agri Machinery Segment (EAM) in September 2020 sold 11,851 tractors, registering a growth of 9.2% against 10,855 tractors sold in September 2019.
Domestic tractor sales in September was at 11,453 tractors registering a growth of 8.9% against 10,521 tractors in September 2019.
Export tractor sales in September 2020 stood at 398 units against 334 units exported in the year-ago period, registering a growth of 19.2%
Bajaj Auto up 4%
The company reported 10% jump in total vehicle sales in September.
RIL up 0.7%
Silver Lake will invest an additional ₹1,875 crore into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd (RIL). The aggregate investment by Silver Lake and its co-investors in RRVL now adds up to ₹9,375 crore, which will translate into a 2.13% equity stake in RRVL on a fully diluted basis.
Indian benchmark equity indices opened higher on Thursday tracking positive cues from global peers. Sensex opened at 38,410.20, up 342.27 or 0.90%, while Nifty advanced 116.90 points or 1.04% top open at 11,364.45.
IndusInd Bank, rising over 3%, was the top Sensex gainer followed by Bajaj Auto, TechM, Bajaj Finance and Axis Bank. ONGC, Nestle India and NTPC were among the laggards. Of 30 Sensex shares, 27 opened in the green.
Indian stocks traded higher in the pre-opening session on Thursday. At 09:03 am, Sensex was at 38,349.88, up 281.95 points or 0.74%, while Nifty advanced 105.95 points or 0.94% at 11,353.50.
Stocks to Watch
RIL, PNB, PVR, ONGC, Hindalco, Vedanta, CAMS and Chemcon Speciality are among the top stocks that may be in focus in today's trading session.
Market at close on Wednesday
Equity benchmarks closed with modest gains after a choppy session on Wednesday, propped up by buying in select finance and banking stocks amid mixed cues from global markets.
After trading on a volatile note through the day, the 30-share BSE Sensex ended 94.71 points or 0.25% higher at 38,067.93.
On similar lines, the broader NSE Nifty rose 25.15 points or 0.22% to finish at 11,247.55.
Asian shares set for bouncy session
Asian equities were poised for a bouncy session on Thursday after US stocks posted a second consecutive quarter of gains and safe-haven assets, including the dollar, were mixed.
Singapore's SGX Nifty climbed 1%.
Australian S&P/ASX 200 advanced 1.6%.
Japan's Nikkei 225 was little changed.
China's Shanghai Composite was down 0.2%, while Hong Kong's Hang Seng gained 0.7%.
South Korea's Kospi added 0.86%.
Wall Street ends higher
US stocks closed solidly higher on Wednesday as government leaders continued talks for a new pandemic relief package and positive economic data helped the major indexes end the third quarter in positive territory.
The Dow Jones Industrial Average rose 329.04 points, or 1.2%, to 27,781.7, the S&P 500 gained 27.53 points, or 0.83%, to 3,363 and the Nasdaq Composite added 82.26 points, or 0.74%, to 11,167.51.