Sensex closes 445 points higher; Nifty over 131 points after a weak start21 min read . Updated: 05 Oct 2021, 04:26 PM IST
- Sensex closed at 59,744.88, up 445.56 points, or 0.75%; Nifty closed at 17,822.30, up 131.05 points, or 0.74%
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India's benchmark Indices started trading on Tuesday in the negative, in line with global indicators. Rise in oil prices, which caused fears of inflation had led to a global selloff. But over the day, the indices rallied to end the day in positive territory. Though sectors such as realty, pharma and tech dragged, support from energy, oil and gas, and metals pushed the indices up.
Benchmark indices closed well in the positive territory on Tuesday. Both Sensex and Nifty had a tepid start trading in the negative. Towards the middle of the day both crossed into the positive territory and rallied to end the day up 445.56 and 131.05 points higher. IndusInd Bank, Bharti Airtel and Reliance were the top gainers on Sensex, while Sun Pharma, Power Grid and ITC were in the red. While 20 stocks on the Sensex showed gains, 10 lagged. On Nifty, in turn, while 29 shares advanced, 20 were among losers. ONGC, IndusInd Bank and Coal India were top gainers, while Cipla, Hindalco and Shreecem were top losers. Among sectoral indices on Nifty, realty, pharma and PSU banks were top drags while Nifty IT moved from red to green over the day mirroring global cues.
The record surge in commodities has intensified investor angst that inflation could upend what has been a Goldilocks period for many markets. Global stocks sold off for a second day Tuesday as a Bloomberg gauge of commodities soared to an all-time high, fanning fears of sustained price rises impacting corporate margins, end demand and monetary policies. Technology stocks and emerging-Asian markets are among those most at risk, while cyclical shares and the assets of energy-exporting nations are seen as possible havens, according to investors. (bloomberg)
The rupee slumped 13 paise to close at 74.44 (provisional) against the US dollar.
"Nifty gave a good recovery after making a low of 17,640,however the volumes were lesser than its average. It closed at 17,822 , up by 130 points. Nifty has support in 17,580-17,620 range and resistance in 19,890-17,930 range . Overall the trend in Nifty is bullish and buy on dips with strict stop loss is suggested as a strategy."
Amid buzz in chemical sector in the primary market, some shares in this space have reached milestones as well. Aarti Industries shares are one of them. The multibagger stock yesterday hit 4-digit figure and today it has hit its fresh lifetime high of ₹1,071.55 apiece on NSE. It took near 6 years for the chemical stock to travel from ₹100 to ₹1000 per stock journey. However, stock market experts are still bullish on this chemical counter. (Read here)
Rupee and bond prices weakened on Tuesday after crude oil prices extended gains from a seven year high, posing a risk to India's trade deficit and inflation outlook. The Rupee declined 0.3% to 74.51 a dollar after hitting a low of 74.64—a level last seen on 20 July. 10-year bond yield rose 6.27%—the highest since April 2020, up 3 basis points from previous day of 6.24%. Bond yield and bond prices moves in a opposite direction. Crude oil prices extended gains after rallying to the highest level since 2014 following a decision by OPEC to maintain its planned gradual increase of supply, despite the market facing an energy crunch. (Read here)
Punjab National Bank has informed the exchanges in a filing that Crisil Ratings has through a rating action on Monday assigned `CRISIL AA+/Stable' rating to ₹2,000 crore Tier II Bonds (under Basel Ill) of the Bank.
Quantum physics, invisibility cloaks and a cutting-edge Italian theorist are all tipped to win Tuesday's Nobel Physics Prize, a year after it went to pioneering research on black holes. The prestigious honour, to be announced at 11:45 am (0945 GMT) in Stockholm, is the second Nobel of the season after the medicine prize on Monday went to a US duo David Julius and Ardem Patapoutian for discoveries on receptors for temperature and touch. After giving the nod to research in the field of astronomy for the past two years, experts suggest the Nobel committee could look elsewhere this year. afp
The government is considering withdrawing legal cases against telecom companies, involving disputes of about ₹40,000 crore, according to a source. (Read here)
Petrol and diesel prices on Tuesday surged to all-time high levels as rates were increased again after international oil prices hit the highest mark since 2014. Petrol price was hiked by 25 paise a litre and diesel by 30 paise, according to a price notification of state-owned fuel retailers. This sent the petrol price in Delhi to its highest-ever level of ₹102.64 a litre and to ₹108.67 in Mumbai. Diesel rates, too, touched a record high of ₹91.07 in Delhi and ₹98.80 in Mumbai. (PTI)
IndusInd Bank, Bharti Airteland, HCL Tech led gainers, while Sun Pharma, ITC, and Dr Reddy's were in the red.
Bharti Airtel on Tuesday informed the stock exchanges that it has conducted India’s first 5G trial in Bhaipur Bramanan village, located on the outskirts of Delhi-NCR region. (Read here)
Benchmark indices were trading flat on Tuesday after opening lower amid rising oil prices and inflation concerns that are keeping the markets volatile. Energy, oil and gas and metal stocks were supporting the indices whereas tech and pharma stocks were among the draggers. (Read here)
MetLife International inked a share purchase agreement with IGE (India) and Elpro International Limited to acquire the total combined shareholding of 15.27% in PNB MetLife India Insurance Company. However, the company said, transaction is subject to all necessary regulatory approvals. (Read here)
The Enforcement Directorate (ED) has named 21 people and entities in its first charge-sheet in an alleged bank loan fraud involving Avantha Group promoter Gautam Thapar. Besides Thapar, the people named include former chief executive of Yes Bank Rana Kapoor, according to a news report.
HDFC Asset Management Company Ltd, India’s second biggest asset manager, has filed papers for nine exchange-traded funds (ETFs) with the Securities and Exchange Board of India (Sebi), as per information available on the markets regulator’s website. (Read here)
Aditya Birla Capital Ltd (ABCL) has in a filing with the BSE regarding the initial public offering of its material subsidiary Aditya Birla Sun Life AMC Limited (ABSLAMC) stated that the finalized offer price (including the anchor investor offer price) has been fixed at ₹712 per equity share of ₹5 each of ABSLAMC. Accordingly, the size of IPO aggregates to ₹27,682.56 million, comprising an Offer for Sale of 2,850,880 equity shares by ABCL aggregating to ₹2,029.83 million and 36,029,120 equity shares by Sun Life AMC aggregating to ₹25,652.73 million, subject to finalization of basis of allotment, the company said.
Online meat delivery company Licious said on Tuesday that it has raised $52 million in a round led by IIFL AMC's late-stage tech fund at a valuation of a billion dollars, making it one of the first unicorns in India's thriving direct-to-consumer (D2C) space. Licious is now the 29th unicorn to emerge out of India in 2021 in the middle of an unprecedented funding boom.
Ola, India's largest mobility platform, on Tuesday, said it has acquired GeoSpoc, a leading geospatial services provider in India. (Read here)
Currently, Aarti Industries Ltd's plants are running at high utilization levels with demand in the domestic market for discretionary products having already reached pre-covid levels while export markets are expected to resume normalcy by the end of H2FY22. Moving forward, focus on value-added products, production of more downstream products, and better operating leverage is expected to drive the company’s margin and profitability. The company is exhibiting good earnings growth visibility over a medium to long term driven by 1) Capex coming on stream, 2) Commercialization of its key long-term contracts (albeit delayed due to the covid-19 disruptions), 3) Growing contribution of value-added products, and 4) Structural shift in the global supply chains becoming independent of China. Given the strong future growth outlook, we revise our recommendation from HOLD to BUY and upgrade our target price to ₹1,080 (from ₹925 earlier) while raising our multiple to 35x (from 30x earlier). We value the stock at 35x to its FY24 EPS.
IDFC First retail funded assets grew by 7% during Q2FY22 compared with the year-ago period. Housing loan registered strong q-o-q growth of 11% in q2, while gross funded assets at ₹1.17 trillion at the end of September, an increase of 9.75% y-o-y.
India's HPCL-Mittal Energy Ltd (HMEL), part-owned by steel tycoon L.N. Mittal, plans to start its naphtha cracker at Bathinda refinery in northern Punjab by the end of the March quarter of 2022, according to a Reuters report on Tuesday. The cracker at the 230,000 barrels-per-day (bpd) refinery will have an annual capacity of 1.2 million tonnes. State-run refiner Hindustan Petroleum Corp and Mittal Energy Investments Pvt. Ltd own 49% stake each in the project.
The Maharashtra Environment Minister Aaditya Thackeray has said that entire fleet of Brihanmumbai Electric Supply and Transport (BEST) will become electric by 2028. The Maharashtra minister, who is handling an additional portfolio of Guardian Minister of Mumbai suburban district went on to announce that entire BEST buses will run either on electrical power or on hydrogen fuel energy cells by the given time frame. (Read here)
IRCON International, with its joint venture partner has emerged as the lowest bidder for ₹34.29 billion in a tender floated by NHSRCL.
State-run mineral producer NMDC has fixed new, increased prices for ore. The company has set lump ore prices at ₹5,950 per tonne and fines prices at ₹4,760 per tonne.
Nifty realty and PSU banks were top drags among sectoral indices followed by pharma and IT at noon on Tuesday.
Gainers and losers on the Sensex struck a balance of 15 each at noon. Top gainers on the index were Bharti Airtel, Asian Paints and IndusInd Bank, while Dr Reddy's, ICICI Bank and ITC were in the red.
Another Chinese homebuilder has hit financial trouble after it missed payments on debt obligations, adding to worries over the country's property sector as embattled giant China Evergrande teeters on the brink of collapse. (Read here)
TVS Motor Company has signed a memorandum of understanding with Tata Power to collaborate on electric two-wheeler charging ecosystem in India, a report said. The companies will explore opportunities to use solar energy to power select TVS Motor locations.
"The seasonally adjusted India Services Business Activity Index posted 55.2 in Sep 2021. While the reading has come down from 56.7 in Aug 2021, it still points to a solid pace of expansion in the services sector. Rollback of Covid related restrictions have led to an increase in movement of people thus leading to continued increase in new business inflows. Despite easing from August, the rate of expansion was marked and the second-fastest since February 2020. Moreover this was the first time that Indian service providers have hired people after shedding jobs for nine consecutive months till August. Despite the strong rebound in services growth there were concerns over inflationary pressures. Continued strong growth in the services sector resulted in a strong composite PMI reading of 55.3 in September as compared to a reading of 55.4 in August. We expect continued strong momentum in both the manufacturing & services sector led by inventory buildup leading to the festive season. Key risk to growth is the possibility of a third Covid wave due to increased mobility on account of the festive season."
The promoters of Shapoorji Pallonji (SP) Group are planning to raise ₹6,600 crore by selling debentures to investors, according to a news report. This will be secured against shares of Tata Sons, it said, citing filings with the Registrar of Companies by Sterling Investment Corporation, a Mistry family entity, on 25 September. According to the report, legal experts called the planned move “potentially controversial" as Tata Sons has objected to similar moves by the Mistrys in the past. The Mistry family owns an 18% stake in Tata Sons, the holding company of the Tata Group.
India's services industry expanded for a second straight month in September, bolstered by improved domestic demand and easing COVID-19 restrictions, pushing firms to hire more employees for the first time in nearly a year, a private survey showed. (Read here)
Technology stocks are bearing the brunt of a recent market selloff, putting a spotlight on how an extended downturn in the sector could weigh on broader equity indexes. After Monday's sharp drop, the S&P 500 technology sector is down 6.7% since the overall S&P 500 closed at a record on Sept. 2, compared with a 5.2% decline for the broader index over that time. The tech-heavy Nasdaq Composite, meanwhile, is down 7.3% from its Sept. 7 closing high, getting closer to marking a 10% correction. (Reuters)
India's cryptocurrency market grew 641% over the past year and that of Pakistan 711%, according to report from Chainalysis. India has a 59% share of activity taking place on decentralized finance (DeFi) platforms, and Pakistan has 33%, the report said. It added that there has been a significant increase in cryptocurrency-related entrepreneurship and venture capital investment in the region.
“The markets are struggling to keep above the 17,700 level. This zone of 17,700-17,750 is a crucial one as we need to close above this for the markets to resume its current uptrend. Until that does not happen, we will be sideways. For the downside to trigger, we would need to break 17,400 on a closing basis as that is the short-term support respected earlier this month."
The 10-year bond yield of India rose to the highest level since 12 July. The bond yield opened at 6.26% compared with 6.25% at previous close.
IndusInd Bank's net advances as of 30 September was at ₹2.22 trillion, an increase by 10% year-on-year. Deposits at the bank as of 30 September stood at ₹2.75 trillion, an increase of 21% y-o-y.
Rupee slumps 32 paise to 74.63 against US dollar in early trade— Press Trust of India (@PTI_News) October 5, 2021
Infosys, TCS, HCL Tech among top drags.
Jindal Steel and Power Ltd has reported its highest ever quarterly steel sales during the second quarter of this fiscal, the company said on Tuesday. JSPL’s Steel sales volume surged 32% q-o-q and 10% y-o-y to hit a record of 2.13 million tonnes during the quarter. In Q2FY22 JSPL steel sales have first time breached 2 million tonnes for the quarter. Exports continue to boost sales with share of exports rising to greater than 40% in Q2FY22 (from 34% in Q1FY22 and 38% in Q2FY21).
Following the steep 62 per cent hike in prices of domestically produced gas announced by the Centre last week, Gujarat Gas on Tuesday increased the retail price of compressed natural gas (CNG) and piped natural gas (PNG) by ₹2.50 and ₹9.50 respectively. (Read here)
Nifty pharma and realty were among the top drags at 9:45 am.
Amazon.com Inc, Google and Microsoft Corp are expected to join a Biden administration conference on Tuesday focused on quantum technologies as the U.S. government works to head off hacking threats and corner a burgeoning growth industry. The White House's Office of Science and Technology Policy (OSTP) is hosting the event that will discuss critical applications of quantum computing, which is expected to operate millions of times faster than today's advanced supercomputers. (Reuters)
Gold and silver prices today dipped in Indian markets, tracking softer global rates. On MCX, gold futures were down 0.23% to ₹46,779 per 10 gram while silver futures were off 0.5% to ₹60,651 per kg. In the previous session, gold had jumped 0.8% while silver rose 0.65%. (Read here)
BSE Sensex opened in the red with 17 of the 30 stocks on the index starting in red. Top among the stocks in green were Asian Paints, Bharti Airtel and Maruti, while ICICI Bank, HCL Tech and Tech Mahindra were among the top drags.
Synnex has said it has signed a distributor agreement with Freshworks inc.The partnership enables tech data to make Freshworks' suite of products for business solutions available in India region. (Reuters)
India Infrastructure Trust has informed the BSE that the record date for the purpose of distribution of dividends to unitholders, if declared, will be 15 October.
Authum Investment & Infrastructure Ltd has informed the BSE that the company has fixed 21 October as the record date for the split or sub-division of 1 equity share from existing face value of ₹10 each to 10 equity shares of face value of ₹1 each.
Markets regulator Securities and Exchange Board of India (SEBI) on Monday imposed a penalty of ₹1.02 crore on Aditya Birla Money Ltd for the violation of provisions of Portfolio Managers (PM) regulations, Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations, code of conduct under SEBI (Stock-Broker) Regulations,1992 and SEBI circulars. (Read here)
Oil prices eased on Tuesday after climbing to their highest levels in years in the previous session on the decision by OPEC and allied major oil producers to maintain restraint on supply. Brent crude was down by 3 cents at $81.83 a barrel by 0054 GMT, having rising 2.5% on Monday. US West Texas Intermediate (WTI) oil dropped 10 cents to $77.52, after gaining 2.3% the previous session. In Asian trade on Tuesday, US oil was steady at $77.60 a barrel, a day after hitting its highest since 2014. Brent crude stood at $81.30 after rising to a three-year top.
Ericsson AB filed a lawsuit Monday accusing Apple Inc. of engaging in unfair tactics to avoid paying royalties for the use of baseline 5G telecommunications technology. Ericsson says it’s trying to renegotiate a license with Apple and is already encountering obstacles. It wants a federal judge to rule that Ericsson’s offer complies with requirements that royalty demands be fair and reasonable. (Bloomberg)
"The markets failed to close above 17,700; if we manage to do that, the short-term skepticism would be removed and the Nifty can scale higher towards 18000. The support lies at 17,400 and as long as that holds, the current trend is bullish and we can utilize intra day corrections to accumulate long positions."
India's largest private lender HDFC Bank while announcing its Q2 update said that the bank's advances aggregated to approximately ₹11,985 billion as of September 30, 2021, a growth of around 15.4% year-on-year from ₹10,383 billion in the same quarter last year and a growth of around 4.4% over ₹11,477 billion in the quarter. (Read here)
Markets are likely to be wobbly on Tuesday while trends in SGX Nifty suggest a weak opening of Indian benchmark indices. (Read here)
A federal jury on Monday has ordered Tesla Inc to pay more than $130 million in damages to a Black former worker named Owen Diaz, finding he was subjected to a racially hostile work environment, the Wall Street Journal reported. The jury determined that the company failed to take reasonable steps to prevent Diaz, a contract worker who worked as an elevator operator at Tesla's Fremont factory in 2015 and 2016, from being racially harassed, the newspaper added. (Reuters)
Facebook Inc on Monday cited faulty configuration changes on its routers as the root cause of the nearly six-hour outage that prevented the company's 3.5 billion users from accessing its social media and messaging services. "Our engineering teams have learned that configuration changes on the backbone routers that coordinate network traffic between our data centers caused issues that interrupted this communication," Facebook said. (Reuters)
Nifty has formed a bullish pattern though its placement is normally after a deep/prolonged sell-off, experts believe. (Read here)
Fuel price today: Diesel rates touched a record high of ₹91.07 in Delhi and ₹98.80 a litre in Mumbai
ZEEL, Bharti Airtel, and Biocon have been stocks in the news. (Read here)
A benchmark tracking Chinese technology giants in Hong Kong slumped, on track for a new record low on Tuesday as a global tech selloff triggered by rising US Treasury yields adds to concerns over Beijing’s regulatory crackdown. The Hang Seng Tech Index dropped as much as 2.5% to slip below the previous record closing low on Aug. 20. The gauge, which counts Tencent Holdings Ltd. and Alibaba Group Holding Ltd. as key members, is set for a fourth consecutive weekly decline. The measure, officially launched in July last year, is down some 47% since its February peak and its members have lost about $1.4 trillion in market value, according to Bloomberg-compiled data.
A global selloff in stocks continued in Asia on Tuesday amid concerns that surging prices for raw materials such as crude oil will stoke inflation and sap economic momentum. Shares declined in Japan, South Korea and Australia. US contracts stabilized after the S&P 500 retreated to the lowest since July and the Nasdaq 100 shed over 2%, dragged down by megacap tech firms such as Amazon.com Inc. and Facebook Inc. The energy sector was among the few to rise in the US session. Ten-year U.S. Treasury yields held a climb toward 1.5% and the dollar remained lower. Oil in New York reached the highest since 2014 following OPEC+’s decision to maintain a gradual supply hike even as a natural-gas crisis boosts crude demand. The Bloomberg Commodity Spot Index soared to an all-time peak.
S&P 500 futures were flat as of 9:15 a.m. in Tokyo. The S&P 500 fell 1.3%
Nasdaq 100 futures increased 0.1%. The Nasdaq 100 fell 2.2%
Japan’s Topix index shed 1.2%
Australia’s S&P/ASX 200 Index lost 0.3%
South Korea’s Kospi index fell 1%
Hang Seng Index futures fell 0.1% earlier
Stocks closed lower on Monday as big technology companies such as Apple and Microsoft took losses. The S&P 500, the Dow Jones Industrial Average and the tech-heavy Nasdaq all fell. Meanwhile, the price of US oil rose to its highest close since 2014, as OPEC and allied oil producers stuck to a plan for cautious production increases even as global demand for crude rises.
The S&P 500 fell 56.58 points, or 1.3%, to 4,300.46.
The Dow Jones Industrial Average fell 323.54 points, or 0.9%, to 34,002.92.
The Nasdaq fell 311.21 points, or 2.1%, to 14,255.48.
The Russell 2000 index of smaller companies fell 24.16 points, or 1.1%, to 2,217.47.
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