Sensex ends 593 points higher, Nifty above 11,200; PSU banks lead15 min read . Updated: 28 Sep 2020, 03:39 PM IST Devansh Sharma
- Indian stocks settled higher on Monday, led by PSU bank stocks on hopes of capital infusion by the government. Gains in Asian markets also aided the investor sentiment.
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Indian stocks settled higher on Monday, led by PSU banks on the hopes of capital infusion by the government. Gains in Asian markets also aided the investor sentiment.
Sensex ended at 37,981.63, up 592.97 points or 1.59%, while Nifty advanced 177.30 points or 1.60% to close at 11,227.55.
IndusInd Bank was the top Sensex gainer followed by Bajaj Finance, Axis Bank, ONGC and Power Grid. HUL and Power Grid were the only laggards. Of 30 Sensex shares, 28 closed in the green.
Top gainers on Nifty Auto
Top gainers on Nifty PSU Bank
Sebi invites refund claims from Cypress Money clients
Market regulator Sebi on Monday initiated the refund process for the clients of Cypress Money Investment Advisor, which collected fees through unregistered investment advisory as well as research analyst services. (Full report)
Bond traders see India raising second-half debt sales by a fifth
Indian bond traders’ worst fears may be realized this week if Prime Minister Narendra Modi’s government announces a further increase to its mammoth borrowing plan.
Traders expect the government to lift its borrowing estimate for the October-March period to six trillion rupees ($81.5 billion) from the existing 5 trillion rupees, according to 10 out of 16 traders in a Bloomberg survey. The timing for this increase couldn’t be worse as the Reserve Bank of India is expected to keep its rates on hold in its next meeting amid a persistently high inflation.
The RBI was scheduled to hold its monetary policy meeting on Thursday, but it postponed the meeting and said that it will announce a new date “shortly." (Bloomberg)
Axis Securities recommends 'buy' on Biocon Ltd with a target price of ₹474
"Biocon management has received USFDA approvals for biosimilar Insulin Glargin, Semglee making it third product under Biocon/Mylan collaboration to be approved in US. Sanofi’ Lantus has revenue of $1.4 bn for Glargin molecules in North America market. Biocon-Mylan has launched the drug price which is 65% discount to peak price of Lantus. We expect Biocon could fetch peak revenue of USD $50 mn- USD $100 mn from this drug in FY22E. Biocon has a strong pipeline of biosimilars to be launched over next 3-5 years across various markets. Given its record, the biosimilar products have good potential to garner market share despite the competition. We recommend to BUY with a target price of ₹474."
Top gainers on Nifty Bank
PVR jumps 11%, Inox Leisure up 6%
Multiplex companies gain after West Bengal allows cinema halls to reopen from 1 October.
Rupee settles 18 paise lower at 73.79 (provisional) against US dollar.
MPC meeting rescheduled
The Reserve Bank of India on Monday said that the meeting of the Monetary Policy Committee (MPC) this week has been rescheduled.
“The meeting of the Monetary Policy Committee (MPC) during September 29, 30 and October 1, 2020 as announced vide Press Release 2019-2020/2248 dated April 20, 2020 is being rescheduled. The dates of the MPC’s meeting will be announced shortly," said the statement.
Kotak Securities puts add on Century Plyboards; target price ₹177
"In 1QFY21, due to covid related lockdown, the company reported 65% decline in revenue and net loss of ₹11 cr. Post lifting of lockdown, demand has been recovering gradually. We expect revenue and earnings to decline in FY21E and expect strong earnings growth in FY22E amid expectation of recovery and a low FY21 base. Presence across plywood, MDF and particle board will help the
company counter risk of demand substitution within different categories in the wooden furniture industry. We increase our target price to ₹177 (earlier ₹142) but retain ADD due to recent run-up in the stock. We have valued the stock at a PE of 19x on FY22E earnings."
Angel Brokings says 'subscribe' to UTI-AMC IPO
At the upper end of the IPO price band, it is offered at 25.4x its FY20 earnings and 5.25% of Q1FY21 QAAUM, demanding `7,024cr market cap, which we believe is reasonable; listed peers like HDFC AMC trades at 35x FY20 earnings and Nippon AMC trades at 37x FY20 earnings. Additionally, HDFC and Nippon AMC trade at 12.56% and 8.55% of Q1FY21 QAAUM, respectively. Considering attractive valuation, huge growth potential of MF industry, asset-light business and higher dividend payout ratio, we are positive on this IPO and rate it as SUBSCRIBE."
DHFL up nearly 2%
Transaction Auditor and DHFL Administrator has filed an application before the Mumbai bench of the National Company Law Tribunal related to loan disbursements for 2 projects. The application has been filed against 40 respondents including Kapil Wadhawan and Dheeraj Wadhawan. It estimates the monetary impact of transactions at ₹127.06 billion.
ICICI Bank, RIL, Axis Bank lift Sensex by over 500 points
Coffee Day Enterprises up 4.8%
Debt-ridden Coffee Day Enterprises Ltd on Thursday said it continues to explore and evaluate various opportunities amid reports that it is in talks with Tata Consumer Products Ltd (TCPL) to sell its vending machine business.
Angel Broking on Strides Pharma
“Sequent Scientific Limited sold stake in Strides Pharma Science Limited to Pronomz Ventures LLP. Company informed you that the sale of shares was consummated on 25th September. The proceeds from the sale of stack in Strides Pharma Science Limited net of taxes will be predominantly utilised to consolidate the Company’s shareholding in Provet Veteriner Urunleri San. Ve Tic. A. S., Turkey (Provet) by acquiring 40% stake held by Dr. Husein Aydin in Provet, with the balance to be used to pay the outstanding debt of the Company. Post the acquisition of a minority stake, which is expected to close on or before October 31, 2020, Provet will become a wholly owned subsidiary of the Company. This is positive development for the company," said Yash Gupta - Equity Research Associate, Angel Broking Ltd.
BPCL chairman says privatisation will unlock value for company
Privatisation of Bharat Petroleum Corp will unlock value by increasing investment and technology, its chairman told a shareholders meeting on Monday.
"This (privatisation) is expected to unlock tremendous value through sharpening of professionalism, improvement in efficiencies, increased investments, access to advanced technologies and newer global markets and product diversification, thus propelling future growth," K Padmakar said.
The government is targeting that sale of its 53.29% stake in BPCL in this fiscal year ending March 2021. But the privatisation could spill over into the next fiscal year, according to a Reuters report.
European stock markets rally at open
European stock markets rose strongly at the start of trading on Monday following last week's volatility. London's benchmark FTSE 100 index grew 1.4% to 5,921.64 points. In the eurozone, Frankfurt's DAX 30 index won 1.7% to 12,675.03 points and the Paris CAC 40 advanced 1.4% to 4,795.88. (AFP)
BSE MidCap up 2%
Mphasis, Balakrishna Industries, up over 7% each, top gainers on the index
Angel Broking on multiplex sector
“The West Bengal Government announced on Saturday that they will allow cinema halls to reopen from October 1 in West Bengal after a gap of almost six months. Along with single screen theatres and multiplexes the West Bengal Government will also allow musical, dance and magic shows in the state as well from next month. However such shows/events will be subject to a cap of maximum of 50 persons. Social distancing norms will have to be adhered to during such events\shows along with mandatory wearing of masks. We believe that this is a positive development for multiplex companies like INOX Leisure and PVR. Moreover any relaxations provided by the central Government in Unlock 5.0 would also be positive for the sector. We continue to maintain our positive stance on the multiplex sector as we believe that the long term fundamentals remain intact despite the medium term issues," said Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd.
JSW Energy declines 0.5%
JSW Solar, a wholly-owned subsidiary of JSW Energy Ltd, has bagged 810 MW blended wind energy projects under an auction conducted by state-owned SECI. The Solar Energy Corporation of India (SECI) had conducted an auction for setting up 2,500 MW ISTS (inter-state transmission system) projects under tariff based competitive bidding. The tender was floated in June.
Havells’ refrigerators launch timely, but the stock is pricey
Havells’ stock has fallen by more than 2% in the past two trading days on the NSE. However, the shares are at present almost equal to their pre-covid highs in January. As such, valuations are not cheap. Based on Bloomberg data, the stock trades at 49 times estimated earnings for financial year 2022. (Full report)
No requirement of scrip-wise reporting for short-term sale or purchase of listed shares
The Finance Ministry on Saturday said there is no requirement of scrip-wise reporting in the I-T returns form for day trading or short-term sale/purchase of listed shares. Gains from share trading in case of stock traders or day traders is generally categorised as short-term capital gains or business income. This is because their holding period of shares/units in most of the cases is less than one year which is a prerequisite for the gains to be categorised as long-term capital gains. "...there is no requirement in the return of income for scrip wise reporting in case of short-term/business income arising from share transactions," the ministry said.
RBI likely to keep rates unchanged
The Reserve Bank of India (RBI) is likely to keep interest rates unchanged in the monetary policy committee (MPC) meeting this week, according to a Mint survey of economists and bankers.
Respondents to the poll—10 eminent economists and senior bankers—were unanimous that curbing inflation, currently hovering above 6%, remains the primary concern of the MPC. (Full report)
SC gives Centre, RBI, and banks more time to file reply to plea seeking waiver
The Supreme Court on Monday adjourned the loan moratorium case till 5 October, granting more time to the Centre, the Reserve Bank of India (RBI) and banks to work together and file a concrete reply on their stand on waiving interest charged during the moratorium period. (Full report)
Mazagon Dock Shipbuilders IPO opens tomorrow
Mazagon Dock Shipbuilders, the premier public sector unit war-shipbuilding yard in India will open the initial public offer (IPO) of its equity shares of face value of ₹10 each on September 29. The issue will remain open for three days. Mazagon Dock produces warships and submarines for the Navy and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients. It is the only shipyard to build destroyers and conventional submarines to be used by the Indian Navy. (Full report)
Tata taps wealth funds to buy out Shapoorji stake
The Tata group has reached out to several investors, including sovereign wealth funds, to raise funds to buy out the Mistry family’s stake in Tata Sons Ltd, according to a Mint report.
N. Chandrasekaran, chairman of Tata Sons, is leading the talks with potential investors, the success of which will determine whether the bitter feud between the Tata group and its biggest minority shareholder, the Mistry family, ends, it added. (Full report)
Thomas Cook (India) drops nearly 3%
The company's board has withdrawn approved the withdrawal of share buyback due to impact of covid-19 on business. The board in February had approved a share buyback of 6.9% of total equity worth ₹150 crore. ""... considering the fact that the present commercial and financial position of the Company has undergone substantial deterioration on account of the impact of the covid-19 pandemic and the extended global lockdown measures, it is critical and in the best interests of all our shareholders and investors to protect the financial sustainability of the Company," Thomas Cook said in a BSE filing.
Sun Pharmaceuticals up 0.3%
The Mumbai-based pharma company is looking to expand its specialty business across different regions like Greater China and Japan after having established presence in the US market, the company said in its Annual Report for 2019-20.
Dr Reddy's Laboratories gains nearly 1%
The Hyderabad-based company has launched Dimethyl Fumarate delayed-release capsules, used to treat multiple sclerosis (MS), in the US market. The company's product is a therapeutic equivalent generic version of Biogen's Tecfidera delayed-release capsules, the pharma company said in a statement.
The Indian rupee advanced 6 paise to 73.55 against the US dollar in opening trade on Monday tracking weak American currency and positive domestic equities.
The local unit opened 3 paise lower at 73.64 at the interbank forex market, then gained ground and touched 73.55 against the greenback, up 6 paise over its previous close.
State Bank of India up 1.37%
The board of directors of the bank will consider a proposal for raising of Basel III compliant AT 1 bonds to the extent of ₹5,000 crores, according to a regulatory filing.
Vodafone Idea up 1.7%
The telecom operator will upgrade its existing 3G customers across all markets to 4G network in a phased manner to provide faster data speeds and services.
Mindtree up 2.25%
The company’s co-founder Krishnakumar Natarajan and his family have sold over 4.66 lakh shares of the company, reducing their combined shareholding to 2.01%. The transactions were carried out by Krishnakumar N, wife Akila Krishnakumar and son Siddarth in multiple tranches between September 15-23, Mindtree said in a regulatory filing on Saturday.
Rupee opens 3 paise lower at 73.64 against US dollar.
FPIs pull out net ₹476 crore so far in September from Indian markets
Foreign portfolio investors (FPI) have pulled out ₹476 crore on net basis so far from Indian markets in September, reflecting a cautious stance by participants amid fears of resurgence of coronavirus cases in Europe and other countries.
According to depositories data, FPIs have withdrawn a net ₹4,016 crore from equities and invested a net sum of ₹3,540 crore in debt instruments during September 1-25 -- a net outflow of ₹476 crore.
FPIs remained net buyers for three consecutive months -- June-August.
They had invested ₹46,532 crore in August, ₹3,301 crore in July and ₹24,053 crore in June on net basis. (PTI)
L&T Technology services selected to support Tenneco DRiVTM Ride performance division
L&T Technology Services Limited has been selected to provide engineering services for Tenneco’s DRiV original equipment (OE) Ride Control business group.
LTTS will set-up a HUB Development Center to provide DRiV with additional engineering capacity in conventional damper and component development. The HUB Development Center will also provide a hybrid, unified engineering business model for supporting established domains such as mechanical, product lifecycle management (PLM) and digital engineering.
HDFC twins, ICICI Bank, RIL lift Sensex by over 350 points
"The resistance level for the Nifty is at the 11300-11350 zone. Until those levels are crossed on a closing basis, the index continues to remain bearish. The risk reward at this point in time is favourable as traders could strategize short positions for a target of 10750 and a stop loss around the 11350 level," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Lakshmi Vilas Bank down 0.78%
The Reserve Bank of India (RBI) on Sunday approved the formation of a three-member committee of directors to temporarily run the struggling Lakshmi Vilas Bank Ltd after shareholders voted out seven directors, including managing director and chief executive S. Sundar.
RIL up 0.38%
Reliance Retail Ventures Limited, the retail business of Mukesh Ambani's Reliance Industries Ltd (RIL), has received ₹7,500 crore from tech investor Silver Lake, the company said in a stock exchange filing on Saturday.
Most sectoral indices on NSE in the green at open
Indian benchmark share indices opened higher on Monday, tracking positive cues from Asian peers. Sensex opened at 37,756.25, up 367.59 points or 0.98%, while Nifty advanced 90.60 points or 0.82% to open at 11,140.85.
Tata Steel, rising over 2%, was the top Sensex gainer followed by Bajaj Finance, Axis Bank, Maruti and Bharti Airtel. TCS, HUL, Infosys and Nestle India were among the laggards. Of 30 Sensex shares, 26 opened in the green.
Indian stocks traded higher in the pre-opening session on Monday. At 9:03 am, Sensex was at 37,867.21, up 478.85 points or 1.28%, while Nifty added 132.20 points or 1.20% at 11,182.45.
Stocks to Watch
RIL, Lakshmi Vilas Bank, Mindtree, Dr Reddy's, Sun Pharma and Ceat are among the top ten stocks that may be in news on Monday.
Market at close on Friday
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.
Chinese stocks underpin Asia
Chinese stocks drove Asian markets higher on Monday, though sentiment was still cautious ahead of a US Presidential debate and as a spike in new coronavirus cases undermined global economic recovery hopes.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5% to 550.47, but still within striking distance of a two-month low of 543.66 hit last week.
At 8:40 am (IST), China's Shanghai Composite index was a little changed while Hong Kong's Hang Seng advanced 0.5%.
Japan's Nikkei 225 climbed 0.72%.
Singapore's SGX Nifty was up 0.66%.
Australia's ASX 200 was a little changed.
South Korea's Kospi was up 1.54%.
Wall Street closes higher
Technology stocks again rode to Wall Street's rescue on Friday, lifting the main indexes more than 1%, but the Dow and the S&P 500 still posted their longest weekly losing streaks in a year as fears of a slowing economy sparked an almost month-long rout.
The Dow Jones Industrial Average rose 360.42 points, or 1.34%, to 27,175.86, the S&P 500 gained 51.92 points, or 1.60%, to 3,298.51 and the Nasdaq Composite added 241.30 points, or 2.26%, to 10,913.56.