Sensex, Nifty snap 6-day losing streak to end 2% higher, IT stocks shine13 min read . Updated: 25 Sep 2020, 03:49 PM IST Devansh Sharma
- Indian shares on Friday bounced back after 6 straight days of losses, led by gains in index heavyweights Infosys, TCS, ICICI Bank and RIL
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Indian shares on Friday bounced back after 6 straight days of losses, led by gains in index heavyweights Infosys, TCS, ICICI Bank and RIL. The sentiment was also lifted by stronger Asian peers on hopes of US stimulus.
Sensex settled at 37,388.66, up 835.06 points or 2.28%, while Nifty climbed 244.70 points or 2.26% to end at 11,050. Market capitalisation of BSE listed firms increased to ₹152.28 trillion from ₹148.76 trillion.
Bajaj Finserv, closing over 6% higher, was the top Sensex gainer followed by HCL Tech, Bharti Airtel, IndusInd Bank, L&T, TCS and ONGC. All stocks in the benchmark gauge ended in the green.
Vodafone Idea surges over 13%
UK telecom major Vodafone on Friday won arbitration against India over retro tax demand of ₹20,000 crore. The Permanent Court of Arbitration in The Hague ruled that conduct of Income Tax Department is in breach of 'fair and equitable' treatment. (Full report)
Indian Traders Should Expect Lower Returns: Quantum Advisors
India is likely to see a slower pace of economic growth over the next few years, which means stock investors should expect lower returns, according to analysts at asset manager Quantum Advisors Pvt.
India’s $2 trillion stock market has rebounded more than 40% from a March bottom, joining a global rally in defiance of a bleak economic outlook. But whether it can deliver the 12-15% annual return frequently touted by local asset managers in the long term depends on how fast India’s economy will grow, Arvind Chari, head of fixed income and alternative investments at Mumbai-based Quantum, said in a note.
“GDP growth does matter to corporate profits and to stock market performance," said Chari. “India‟s golden period (March 2003-March 2011) in terms of economic growth was also the best period for corporate profitability and stock returns." (Bloomberg report)
Angel Broking on Cipla
"“Cipla Limited today announced that it has received final approval for its Abbreviated New Drug Application (ANDA) for Dimethyl Fumarate DR Capsules 120mg, 240mg and 120mg/240mg Starter Pak from the United States Food and Drug Administration (US FDA). Cipla’s Dimethyl Fumarate DR Caps 120mg, 240mg and 120mg/240mg Starter Pak is AB-rated generic therapeutic equivalent version of Biogen IDEC Inc.’s Tecfidera®. It is indicated for the treatment of relapsing forms of multiple sclerosis (MS), to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease, in adults. According to IQVIA (IMS Health), Tecfidera® had US sales of approximately $3.8 Billion for the 12-month period ending July 2020. This is a very big positive development for the company," said Yash Gupta Equity Research Associate, Angel Broking Ltd.
Crude oil futures rise on spot demand
Crude oil prices on Friday rose by ₹11 to ₹2,984 per barrel as participants widened their positions on firm spot demand.
On the Multi Commodity Exchange, crude oil for delivery in October traded higher by ₹11, or 0.37%, at ₹2,984 per barrel in 2,893 lots.
Analysts said raising of bets by participants kept crude oil prices higher in futures trade.
However, West Texas Intermediate crude oil fell by 0.30% to USD 40.43 per barrel, while Brent crude was trading lower by 0.43% at USD 42.12 per barrel in New York. (PTI)
US Stocks See Third-Biggest Outflow Ever
The risk-off sentiment on Wall Street fueled the third-worst weekly outflow on record from U.S. equities, with technology shares falling out of favor.
US stock funds bled $25.8 billion in the week through Sept. 23, according to Bank of America Corp. and EPFR Global data, in a reversal from the previous week’s biggest inflow in more than two years. Investors exited the hottest sector of the rebound, pulling the most money out of tech funds since June 2019. (Bloomberg)
Rejected a year ago, now FTSE Russell includes China in Global Bond Index
Chinese sovereign bonds have won inclusion into FTSE Russell’s benchmark bond index a year after they were rejected.
The index compiler owned by the London Stock Exchange Group said the debt would be added to its flagship World Government Bond Index. The inclusion will start in October 2021, according to a statement after U.S. markets closed Thursday. (Full report)
Top gainers on Nifty Metal
All sectoral indices on NSE in the green
Top gainers on Nifty IT
Rupee ends at 73.61 against the US dollar versus Thursday's close of 73.90.
Granules India hits record high
MUMBAI: Shares of Granules India hit a record high of ₹395 apiece on Friday after the company said it has received the US drug regulator's approval for over-the-counter Naproxen Sodium and Diphenhydramine Hydrochloride tablets in 220 mg/25 mg.
Hong Kong stocks finish week with another loss
Hong Kong shares finished a tough week with another loss Friday as traders are spooked by rising virus cases and the imposition of economically painful containment measures in several countries.
The Hang Seng Index fell 0.32%, or 75.65 points, to 23,235.42 -- leaving it down 5% from last Friday's close.
The benchmark Shanghai Composite Index dropped 0.12%, or 3.76 points, to 3,219.42, while the Shenzhen Composite Index on China's second exchange dipped 0.23%, or 5.03 points, to 2,143.05.
SC asks NCLAT to decide on spectrum sale of Aircel
The Supreme Court on Friday said the National Company Law Appellate Tribunal (NCLAT) will decide whether lenders can sell spectrum rights of bankrupt telecom operator, Aircel Group, under the ongoing insolvency resolution process. (Full report)
BSE MidCap up 2.14%
Ashok Leyland and GMR Infra, up over 10% each top gainers on MidCap index
Kotak Securities puts 'sell on Persistent Systems with a target price of ₹925
"We expect Persistent to report an EPS of ₹50.5/share in FY21E (earlier ₹45.5) and an EPS of ₹59.5/share in FY22E (earlier ₹54). With the change in the top management, we expect better execution, lower attrition, higher revenue from re-seller business. Recent run-up in the stock price discounts most of the positives, we opine. Hence, we maintain SELL rating on Persistent and a multiple based price target of ₹925/share (earlier Rs.726/share). We find Persistent valuations punchy at 19.8x P/E and 11.4x EV/EBIDTA on FY22E considering earnings CAGR of 15.6% (FY20-22E). We have valued the stock at 15.5x PE multiple at ~28% discount to its peers considering its size and return ratios. We expect RoE to be 15.3% in FY21E and 16% in FY22E," the brokerage said.
DLF up 3.6%
The country’s largest real estate developer by market value, is firming up plans to launch mid-income projects, in the ₹60-80 lakh price category, as demand for homes in the affordable category remains relatively better in a tepid residential market, according to a Mint report.
Rupee rebounds after hitting a one-month low against US dollar
The rupee strengthened by as much as 24 paise to 73.66 against the US dollar, tracking gains in domestic equities. At the interbank forex market, the domestic unit opened at 73.76 against the US dollar, then gained further ground and touched 73.66 at day's high. On Thursday, the rupee dived 32 paise to touch a near one-month low of 73.90 against the US dollar. (Full report)
Billionaire Mistry braces for fight over Tata stake value
The Mistry family-owned Shapoorji Pallonji Group holds 18.4% of the holding company of the software-to-trucks Tata empire, and wants to sell it and raise funds for its own cash-strapped businesses. It had previously sought to pledge the shares as collateral, but was blocked this week when Tata told the Supreme Court it was open to buying the stock itself if Mistrys needed money. (Full report)
TCS up 4.3%
Tata Consultancy Services (TCS) has partnered with maurices, a women’s fashion-apparel retail chain in the US and Canada, to help create a new flexible and scalable IT landscape for the latter.
Marico up 4%
The company has divested its entire equity investment in Revolutionary Fitness Private Limited ('Revofit') after evaluating the long-term prospects, it said in a regulatory filing.
IRB Infra up over 7%
IRB Infrastructure Developers Ltd on Thursday said its special purpose vehicle (SPV) will start toll collection on Yedeshi Aurangabad highway in Maharashtra. The company said the highway stretch on NH 211 has received completion certificate.
Granules India gets US FDA nod of Naproxen Sodium and Diphenhydramine Hydrochloride Tablets
Granules India Limited announced today that the US Food & Drug Administration (US FDA) has approved its Abbreviated New Drug Application (ANDA) for Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, generic equivalent of Aleve PM Tablets of Bayer HealthCare LLC.
These tablets are used for relief of occasional sleeplessness associated with minor aches and pains and to help you fall asleep and stay asleep.
Wipro up 1.2%
Research teams from IT major Wipro and cancer care specialists HCG have partnered to study cough patterns of covid-19. They’re working on an app that can distinguish the covid cough from other types of cough caused by seasonal bronchitis and pneumonia.
Bharti Airtel up 4%, Vodafone Idea up 1.6%
Vodafone Idea Ltd lost 4.8 million users in June, shedding customers for the eighth month in a row, even as rival Bharti Airtel Ltd narrowed the loss to 1.1 million. Reliance Jio Infocomm Ltd was the only gainer in June, signing up 4.5 million new customers, showed data issued by the Telecom Regulatory Authority of India (Trai) on Thursday. State-run Bharat Sanchar Nigam Ltd (BSNL) lost 1.7 million users in June.
Accenture’s robust order wins underpin the optimism in IT stocks
Accenture Plc’s latest results strengthen the Street’s view of a recovery in the IT sector. The global IT major reported a 1% fall in constant current revenues in the quarter ending August 2020. But outsourcing revenue, where the Indian IT has greater presence, held-up growing 7% from the year-ago quarter. In the earlier quarter (Q3 FY20) outsourcing revenue grew 5%. The Nifty IT index is up 2% in Friday trade. Note that Accenture’s fiscal year ends in August. (Full report)
Cadila Healthcare up 0.2%
Zydus Cadila has received final approval from the USFDA to market Dimethyl Fumarate Delayed-Release Capsules, in the strengths of 120 mg and 240 mg. In its approval, the USFDA noted that Zydus was one of the first ANDA applicants to submit a substantially complete ANDA and is therefore eligible for 180 days of generic drug exclusivity along with other first ANDA applicants.
Hitachi ABB Power Grids energizes first stage of Raigarh-Pugalur 800 kV UHVDC transmission link
Hitachi ABB Power Grids India, along with consortium partner Bharat Heavy Electricals Limited, has successfully energized the first stage of the 6,000 megawatt (MW) +/-800 kilovolt (kV) Ultra-high Voltage Direct Current (UHVDC) transmission link connecting Raigarh in Central India to Pugalur in the southern state of Tamil Nadu. When completed, the approximately 1,800-kilometer-long two-way transmission line will have the capacity to meet the electricity needs of over 80 million people in India.
TCS, Infosys, HCL Tech lift Sensex by over 300 points
RITES up 1%
The company has bagged a ₹206 crore contract to construct four road over bridges in Andhra Pradesh from Indian Railways. "RITES Ltd has been awarded a turnkey contract for construction of (ROBs) in replacement of existing level crossings on competition basis from Railway Board amounting to ₹205.85 crore," the company said in a statement.
M&M up nearly 1%
The company has increased its equity stake in Finland’s Sampo Rosenlew Oy from 49.14% to 74.97%. Sampo is a European combine harvester company, well-known for mid-sized combine harvesters in the markets of Europe, Eurasian countries and North Africa.
Rupee opens at 73.75 against the US dollar versus Thursday's close of 73.90.
Loaded investors and niche firms keep IPOs shining
Going by the listing-day euphoria of recent new share sales, the rest of fiscal 2021 promises to be a busy period for more IPO hopefuls with many more companies expected to go public over the next six months. Mint looks at what lies ahead. (Full report)
"The Nifty has opened in the green and traders can utilise this opportunity to strategize short positions as the index remains in a weak zone. We could witness a target of 10750 during the course of the October series. If we are unable to hold that level, the Nifty could further slide to 10600. The resistance zone on the upside is at 11550-11600," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Tata Consumer Products up 2.71%
The company is weighing a non-binding bid for the vending machine business of Coffee Day Enterprises Ltd., says a Bloomberg report quoting sources. The board of Tata Consumer Products has approved a proposal to explore an acquisition of the operation from Coffee Day, it said adding that, Coffee Day is seeking a valuation of about ₹20 billion ($271 million) for the vending machine business.
RIL up 0.82%
Reliance Jio, a subsidiary of Reliance Industries Ltd (RIL), has partnered AeroMobile to launch mobile services on 22 flights on international routes, with plans starting at ₹499 per day. Jio's partner airlines include Virgin Atlantic, Swiss, Emirates, Etihad Airways, Euro Wings, Lufthansa, Malindo Air, Biman Bangladesh Airlines, and Alitalia.
All sectoral indices on NSE in the green
Indian benchmark equity indices opened on a firm footing on Friday tracking gains in global markets. Sensex opened at 36,991.89, up 438.29 points or 1.20%, while Nifty opened 104.85 points or 0.97% higher at 10,910.40.
IndusInd Bank, rising over 2%, was the top Sensex gainer followed by TCS, Bharti Airtel, Bajaj Finance, M&M, Sun Pharma, Axis Bank and Tata Steel. All the shares in the benchmark gauge were in the green.
Indian stocks traded higher in the pre-opening session on Friday. At 9:05 am, Sensex was at 36,942.92, up 389.32 points or 1.07%, while Nifty advanced 122.05 points or 1.13% to 10,927.60.
Stocks to Watch
RIL, Tata Consumer, RITES, IRB Infra, Marico, TCS and M&M are among the top stocks that may be in news on Friday.
Market at close on Thursday
Indian equities continued their downward march for the 6th straight session on Thursday, with benchmark indices cracking about 3% in the bloodbath.
Sensex dropped 1114.82 points or 2.96% to settle at 36,553.60. Similarly Nifty settled at 10,805.55, down 326.30 points or 2.93%.
Market capitalisation of the BSE listed firms dropped to ₹148.98 trillion from ₹152.71 trillion at the end of the session.
IndusInd Bank, closing over 7% lower, was the top laggard followed by Bajaj Finance, TechM, TCS, M&M and Tata Steel. HUL was the only gainer. Of 30 Sensex shares, 29 closed in the red.
Asian shares rise
Asian shares rose on Friday after robust US housing data supported a late tech-driven rally on Wall Street, with investors picking up the pieces a day after a broad regional index posted its biggest daily loss in more than three months.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.66% higher in the morning session, after slumping 2.15% a day earlier, its biggest daily drop since June 11.
Singapore's SGX Nifty was up 0.7%
China's Shanghai Composite index was a little changed, while Hong Kong's Hang Seng added 0.3%.
South Korea's KOSPI added 0.5%.
Japan's Nikkei 225 climbed 0.6%.
Australia's ASX 200 gained 1.3%.
US stocks end higher
Wall Street rallied in a rocky session on Thursday as beaten-down technology shares gained favour after data showing a surge in the sale of new homes revived faith in the economic recovery even as US jobless claims rose unexpectedly.
The Dow Jones Industrial Average closed up 52.31 points, or 0.20%, to 26,815.44. The S&P 500 gained 9.67 points, or 0.30%, to 3,246.59, and the Nasdaq Composite added 39.28 points, or 0.37%, to 10,672.27.