PremiumMarket closing: Sensex closed at 55,555.79, up 226.47 points or, 0.41%, while Nifty was at 16,496.45, up 45.95 points, or 0.28%. Auto, realty, metals were top drags
Sensex, Nifty closed over 0.28% higher on Monday. On Monday, China said it would tighten scrutiny over accounting firms in a fight against financial forgery, vowing "zero tolerance" toward misconduct.
The rupee gained 17 paise to close at 74.22 (provisional) against the US dollar on Monday, supported by a firm trend in domestic equities and weak American currency overseas. However, surging crude prices in the international market restricted the rupee’s gain, forex traders said. At the interbank forex market, the local unit opened strong at 74.27 against the greenback and moved in a range of 74.22 to 74.30 in the day trade. It finally ended at 74.22 against the American currency, registering a rise of 17 paise over its previous close. On Friday, the rupee had settled at 74.39 against the US dollar. (PTI)
"The index continued to face resistance at the 16,600 levels. We need to get past this to scale higher to 16,800-1,6850 which should be the next target for the Nifty. On the downside, there is good support around 16,350-16,400. Until we do not break this, traders can accumulate long positions for higher targets."
Sensex closed at 55,555.79, up 226.47 points or, 0.41%, while Nifty was at 16,496.45, up 45.95 points, or 0.28%. Auto, realty, metals were top drags. On the 30-share Sensex, HCL tech, TCS, Bajaj Finserv, and 12 other stocks closed in green, while M&M, Bajaj Auto, UltraTech, and 12 other stocks closed in red.
India’s volatile and below-normal monsoon rainfall may create challenges for inflation and economic growth in rural areas over the medium-term, according to Barclays Plc’s chief India economist. The nation is facing an 8% monsoon rainfall deficit, which will impact future sowing and harvesting seasons, pressuring consumer prices and squeezing the agriculture sector, Rahul Bajoria said in a Bloomberg Television interview Monday with Juliette Saly and Rishaad Salamat. (Bloomberg)
Co-lending with non-banking firms, digital, agriculture financing, and technological resilience for 24x7 banking are expected to be part of Ease 4.0 Index, a reform agenda for 2021-22 for public sector banks, sources said. Launched in January 2018, Enhanced Access and Service Excellence (Ease) is the common reform agenda for all public sector banks (PSBs) aimed at institutionalising clean and smart banking. Ease 4.0 reforms agenda for financial year 2021-22 is likely to be unveiled by Finance Minister Nirmala Sitharaman later this week, sources said.
“Indian markets started on a positive note following positive Asian markets cues after as Hong Kong’s Hang Seng edges out of bear territory seen in last week. During the afternoon session markets recovered from lows seen post opening session led by buying in TECK, IT and Energy stocks. Gains in frontline blue chip stocks such as HCL Tech and TCS also helped lift the markets. Sentiments were upbeat as Crisil Ratings revised the credit quality outlook of India Inc for fiscal 2022 to positive from cautiously optimistic earlier. Also, positive European and western markets after a losing week added strength to the markets as investors eye a key event where the Federal Reserve could hint at prospects for tapering stimulus."
HCL Technologies (HCL) has signed a contract with Munich Re, one of the world’s leading reinsurers, to create a next generation digital workplace for its workforce. Shares of HCL Tech were trading over 4% higher, surging to a 52-week high to ₹1,166 per share on the BSE in Monday's afternoon deals. (Read here)
Metropolitan Magistrate Animesh Kumar on Monday gave the police three weeks to conclude an investigation into claims from a former Paytm director who said he co-founded the digital payment platform but did not receive shares owed. "I am directing them to conclude the inquiry as soon as possible," said the Metropolitan Magistrate. The police has submitted a status report to the court but is yet to conclude the investigation, senior lawyer Anupam Lal Das, representing Saxena, told Reuters after the hearing. A Delhi police official declined to comment. Paytm did not respond to a request for comment.
Carmaker Maruti Suzuki is working with Toyota to develop a self charging hybrid vehicle, Moneycontrol.com reported. Rahul Bharti, executive director, Corporate Planning and Government Affairs, Maruti Suzuki said, “There is a joint testing program of some electric vehicles; these prototypes will be tested starting next month along with Toyota. We are planning to get more consumer feedback on usage patterns, etc. Till the time charging infrastructure grows in India you will need self-charging machines, so towards that, we will be using hybrid electric vehicles."
Drug firm Zydus Cadila on Monday said it has received final approval from the US health regulator to market Tofacitinib extended-release tablets, used to treat rheumatoid arthritis, in the American market. The company said it has received approval from the US Food and Drug Administration (USFDA) for the drug in 11 mg and 22 mg strengths. Zydus was the first abbreviated new drug application (ANDA) filer on Tofacitinib extended-release tablets 22 mg and thus holds 180-day exclusivity on this strength, the company said in a statement. (PTI)
Drug firm Zydus Cadila on Monday said it has received final approval from the US health regulator to market Tofacitinib extended-release tablets, used to treat rheumatoid arthritis, in the American market. The company said it has received approval from the US Food and Drug Administration (USFDA) for the drug in 11 mg and 22 mg strengths. Zydus was the first abbreviated new drug application (ANDA) filer on Tofacitinib extended-release tablets 22 mg and thus holds 180-day exclusivity on this strength, the company said in a statement. (PTI)
HDFC Bank is looking at winning back the market share by number of cards in the next one year, a senior official said on Monday. The largest private sector lender by assets was allowed to issue new credit cards by the RBI last week, over eight months after being banned from doing so due to concerns over repeated technological outages. Parag Rao, its group head for payments and consumer finance, digital banking and IT told reporters that the bank has set some milestones for itself as it seeks to re-enter the market.
Gujarat-based AMNS India is planning to bid for state-owned steelmaker Rashtriya Ispat Nigam Ltd (RINL)—which has already attracted the interest of domestic giant Tata Steel, according to a source. RINL is a special steel making company based in Visakhapatnam, Andhra Pradesh. The company, under the administrative control of the ministry of steel, operates a 7.3 million tonne (MT) steel plant in the state. (PTI)
China’s market regulator halted 42 initial public offerings in Shanghai and Shenzhen after starting a probe into an investment bank, a law firm and other parties involved in the deals. The news of the shelved IPOs was reported by Shanghai Securities News, which cited disclosures by the exchanges and company filings. China Securities Regulatory Commission started a probe of China Dragon Securities Co., Beijing-based law firm Tian Yuan, Carea Assets Appraisal Co. and Zhongxingcai Guanghua Certified Public Accountants LLP, according to Shanghai Securities News. The halts come amid a broader crackdown on the private sector in China, which has roiled capital markets. Regulators have also tightened controls over IPOs this year as firms flocked to raise capital amid a fast economic recovery and an earlier streamlining of regulations. After a mid-year work meeting, the market regulator said on Friday that it will “strictly control the entrance to the capital market" and that it has “zero tolerance" for market misconduct. Among those halted was the share sale of BYD Co.’s chip unit, according to an Aug. 18 update on the Shenzhen bourse’s website.(Bloomberg)
Leading stock exchange NSE has asked investors to refrain from investing in unregulated derivative products such as contracts for difference and binary options offered by internet-based trading platforms. In a statement, the exchange said that investors falling prey to the promises of high or exorbitant returns by these trading platforms may eventually lose money heavily. Accordingly, investors have been advised to refrain from dealing or investing in such products, it added. The development came after the exchange noticed some unregulated platforms or websites offering to trade in certain unregulated derivative products called contracts for difference (CFD) or binary options. (PTI)
Social media giant Facebook has reportedly released a report that it held back earlier due to concerns that it would lead to criticism of the company. Last week, the social media firm added a new section to its Transparency Report, detailing the ‘most viewed posts’ on Facebook in the second quarter of 2021. However, the New York Times later reported that Facebook had held back the Q1 version of the same report because some of the content could make the company look bad and fuel criticism that it aids the spread of fake news. (Read more)
"The markets have bounced from the lows of Friday. However, it is facing some selling pressure and is seeming a little nervous too! The support for the week has been updated to 16,400 and as long as that holds on a closing basis, we should be in positive terrain. If we can keep above the 16,600 levels on a closing basis, the market should achieve 16,800-16,850 as the next target. The medium-term support for the Nifty is at 15,900."
- Jayanth R Varma, a member of the RBI's six-member Monetary Policy Committee, in an interview said that the reverse repo needs to go up and the accommodative stance is not required now.
- India's foreign exchange reserves decreased by $2.099 billion to stand at $619.365 billion for the week ended 13 August due to a fall in core currency assets and gold.
- India’s FPI has pumped in a net ₹7,245 crore into the Indian capital markets in August so far amid positive sentiments due to an improving macroeconomic environment.
- US president Joe Biden has warned that there is a long way to go and a lot could still go wrong'' with respect to evacuating Afghanistan. He has warned of possible terror attacks and acknowledged that he may be forced to push back his deadline for leaving Afghanistan.
- The safe-haven dollar traded near its highest in more than nine months against major peers amid worries that the delta coronavirus variant could derail the global economic recovery.
- Fed Chair Jerome Powell's speech at Jackson Hole due this week has moved online because of pandemic restrictions.
- The German July Producer Price Index improved to 10.4% y/y, beating expectations while the UK Retail Sales plunged by 2.5% m/m in July, much worse than anticipated.
"TVS Motor Co., a reputed manufacturer of two-wheelers and three-wheelers in the world, today announced the launch of TVS NTORQ 125 Race Edition in Dhaka. Designed for the youth, TVS NTORQ 125 has been developed based on the TVS Racing pedigree. It also marks the launch of an exclusive technology platform – TVS SMARTXONNECTTM - making it Bangladesh’s first Bluetooth connected scooter. In our view, this is positive development for export business and it will enhance the product portfolio. Going forward, it will support growth for the company. We are positive on stock."
"Spot gold ended the week lower by 0.4% as a stronger dollar and bets on some early tapering by the US Federal Reserve undermined appeal for the bullion metals. The minutes of the US Fed policy meet held in July hinted towards a tighter economic policy in the coming months which clouded the outlook for Gold. Also, increasing appeal for the US currency as a safe haven following the widespread of the pandemic made the dollar priced gold less attractive for other currency holders. Gold might find some support in the week ahead as renewed pandemic led restrictions in many nations ignited worries of further slowdown in the global economic recovery. However, any signs of tapering by the US central bank might weigh on gold prices. Appreciating US dollar might outpace worries over of slowdown in the global economic recovery and continues pressure gold prices."
SSWL has signed an MOU for close to $105 million from Western Hemisphere which would cover supply of steel and aluminum wheels for a minimum period of three years. Supplies of steel wheels will begin from Chennai and Dappar Plant by September and supplies from Mehsana plant for the aluminum wheels will begin by end of December.
Mangalore Refinery and Petrochemicals' stock was trading at ₹41.60 each, up down 2.92% at 12:20 pm. The company plans to raise funds up to ₹5,000 crore via issue of non convertible debentures.
Aurobindo Pharma Ltd. has terminated its binding agreement to acquire 51% stake in Cronus Pharma Specialities India Private Limited Rs420 crore. While the Aurobindo management had expected to grow the business (to about $100 million over the next three years), there were concerns about low revenue base ($13million in FY21) and thereby on deal valuation as well. With the agreement now called off, the stock soared 6% in early trade on Monday. (Read here)
RattanIndia Enterprises Ltd's stock was trading at ₹46.05 each down 4.95% at 11:38 am. The company is incorporating a wholly owned subsidiary to kickstart the drone business in India.
Cadila Healthcare's stock was trading at ₹546.20 apiece, up 2.06% at 11:30 am. The Drugs Controller General of India (DCGI)’s emergency use authorization for Zydus Cadila’s covid vaccine may finally pave the way for educational institutions to reopen. The vaccine is expected to be available for children above 12 years by the end of September. The Union health ministry will soon revise the guidelines for opening schools and issue an advisory on the inoculation programme for children and adolescents, officials said.
Bharti Group-backed OneWeb, a low earth orbit (LEO) satellite communications company, on Monday confirmed the launch of 34 satellites by Arianespace from the Baikonur Cosmodrome. "The launch follows the successful completion of OneWeb’s ‘Five to 50’ mission and highlights the momentum of the business as it prepares to both introduce commercial service and focus on scaling to global service," the company said. (Read more)
A meeting of board of directors of Affle India is scheduled to be held on August 26, 2021, to consider and approve split of equity shares of the company, subject to approval of the shareholders, the company said in a communication to exchanges today. Affle India shares were down nearly 1% today at ₹3,975. A stock split helps boost the stock's liquidity, particularly among retail investors. In a stock split, the company divides the existing shares of its stock into new shares though the the total value of the shares remains the same. (Read more)
I Squared Capital, a global infrastructure investment manager, through its ISQ Global Infrastructure Fund III and ISQ Growth Markets Infrastructure Fund, has invested approximately $200 million as a first tranche of a $300 million equity raise in AG&P City Gas. Mint had reported this development on 19 August.
Shares of Nirma Group's cement company, Nuvoco Vistas Corp. Ltd opened over 17% weaker on Monday after its initial public offering subscribed over 1.71 times last week. The stock opened at ₹471 and touched a high and a low of ₹512 and ₹471 respectively. At 10.05 am, the scrip was trading at ₹508 on BSE, down 11% from its issue price of ₹570 a share. Analysts says the company is bringing the issue at price band of ₹560-570 per share at post issue EV/EBIDTA multiple of 16 on FY21 EBIDTA basis.
The Sensex opened at 55,695.84, up 366.52 points or 0.66%, while the Nifty was at 16,592.25, up 141.75 points, or 0.86%.
For eight-year-old e-grocer, Grofers, a massive transition is underway, as it bets big on express deliveries, and hopes to make all deliveries on its platform in under the 10-minute mark. The recent investment of over $120 million from food aggregator Zomato Ltd. and existing investor Tiger Global Management, made the e-grocer the 24th startup this year to enter India’s growing unicorn club, confirms Grofers co-founder and chief executive officer, Albinder Dhindsa to Mint. (Read more)
The Sensex was at 55,673.07, up 343.75 points or 0.62% at market pre opening, while Nifty was at 16,450.50, down 118.35 points or 0.71%.
Bitcoin broke back above $50,000 on Monday for the first time in three months as investors piled back into the cryptocurrency on bargain-buying. The largest cryptocurrency by market capitalization, reached as high as $50,152.24, the highest since mid-May, up 2.5%. Bitcoin has recovered after trading in a range of about $30,000 to $40,000 for many weeks, after it plunged from a record near $65,000 in mid-April. Still, it’s up significantly in the past year. (Read more)
Infosys, Voda Idea, Karnataka Bank, oil stocks, Cadila, among other stocks may be in the news today. (Read more)
"Nifty is expected to open positive at 16,580, up by 170 points since yesterday's close. Nitty has strong support at 16,350 and 16,400 levels. It may face resistance at 16,600 and 16,620 levels .New buying should be considered if Nifty closes above 16,650 with higher than average volumes."
Xiaomi is bringing in offerings like gold loans, credit line cards and insurance products as it looks to provide the full spectrum of financial services across payment, lending and insurance in India, its India head Manu Jain said. Speaking with PTI, Jain said these financial services will be offered in partnership with organisations like Axis Bank, IDFC Bank, Aditya Birla Finance Ltd, Stashfin, Money View, Early Salary and Credit Vidya. He stated that Mi Credit, a curated marketplace for personal loans of up to ₹1 lakh, in 2019 witnessed a lot of euphoria, and more than one lakh loans have already been disbursed.
Foreign portfolio investors (FPI) have pumped in a net ₹7,245 crore into the Indian capital markets in August so far amid positive sentiments due to an improving macroeconomic environment. The gradual increase in the amount of net inflows indicates that investors are slowly dropping their cautious stance and gaining higher conviction on the Indian markets, said Himanshu Srivastava, associate director - manager research, Morningstar India. As per depositories data, ₹5,001 crore was invested in equities and ₹2,244 crore in the debt segment by overseas investors between 2-20 August. This took the total net investment to ₹7,245 crore.
Volatility may continue in markets on Monday, while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Friday, the BSE Sensex ended at 55,329.32, down 300.17 points or 0.54% and the Nifty was at 16,450.50, down 118.35 points or 0.71%. (Read more)
Adding more fire to the already-frenzied IPO market, three insurance sector companies are entering the primary market with initial public offerings in coming months to mop up over ₹10,000 crore. These companies are — PB Fintech, which runs the insurance brokerage Policybazaar; standalone health insurer Star Health & Allied Insurance Company; and third-party administrator Medi Assist Healthcare Service. They have already filed their draft prospectus with markets regulator Sebi. Already over 40 companies have hit the IPO market so far this year, raising close to ₹70,000 crore. (PTI)
Union minister Raosaheb Danve on Sunday said the Railways has suffered losses to the tune of ₹36,000 crore during the coronavirus pandemic, and termed goods trains as the real revenue generators for the national transporter. He also said that a bullet train project would be executed along the Mumbai-Nagpur Expressway, which is under construction at present. The minister of state for railways was speaking at the foundation stone laying ceremony of an underbridge at the Jalna railway station. (PTI)
After about two days of the income tax portal being unavailable, Infosys late on Sunday said emergency maintenance on the website has concluded and it is now live. Developed by Infosys, the new income tax e-filing portal "www.incometax.gov.in' has had a bumpy start from the day of its launch on June 7 as it continued to face tech glitches with users complaining that certain functionalities were either unavailable or working slow. A tweet by Income Tax department said the portal has not been available since Saturday. (PTI)
Asian stocks rose early Monday as traders sought to take advantage of last week’s selloff while weighing risks from the delta virus strain and China’s regulatory curbs. The dollar was firm. Shares climbed in Japan, South Korea and Australia. US equity futures edged higher after an advance in the S&P 500 and tech-heavy Nasdaq 100 at the end of last week. The dollar held its recent advance on haven demand due to the impact of the delta variant. Treasuries were little changed ahead of the Jackson Hole symposium from Thursday, which may offer insights into how the Federal Reserve plans to taper bond purchases.
S&P 500 futures rose 0.1% as of 9:20 a.m. in Tokyo. The S&P 500 rose 0.8% Friday
Nasdaq 100 futures rose 0.2%. The Nasdaq 100 climbed 1.1%
Japan’s Topix index rose 1.4%
Australia’s S&P/ASX 200 Index added 0.3%
South Korea’s Kospi index gained 0.4%
Hang Seng Index futures increased 0.8% earlier
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