Tag: Nifty

Indian shares end flat as private banks drag; media stocks surge, BFSI News, ET BFSI

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Indian shares ended flat on Wednesday as major private bank stocks slipped and offset sharp gains in Coal India, while media firms soared on news of Zee Entertainment merging with a rival.

The blue-chip NSE Nifty 50 index closed 0.09% lower at 17,546.65, while the S&P BSE Sensex fell 0.13% to 58,927.33.

Investors also awaited the results of a two-day U.S. Federal Reserve meeting later in the day, where the central bank is expected to give cues on a possible tapering of its bond buying program.

An indication of tapering would likely impact the market and “suck out some liquidity”, said K.K. Mittal, an investment advisor with Venus India.

Private banks fell 0.7%, erasing gains from the previous session, with Housing Development Finance Corp shedding more than 1% to be among the biggest losers on the Nifty 50.

Media stocks posted their best day ever as Zee Entertainment surged 39% on its board approval for a merger with Sony Group Corp‘s Indian unit, a week after the Indian media giant’s top shareholders had asked for a management reshuffle.

Real estate stocks jumped 8.5%, with Godrej Properties adding 13.2% to lead the charge in the sector.

Analysts have said signs of improving sales on easing COVID-19 restrictions is helping sentiment, with a rise in large asset purchases expected during the upcoming festive season.

Auto stocks ended 1.3% higher, as analysts pointed to similar factors aiding gains in the sector.

Consumer stocks fell, with Nestle India dropping nearly 1.5% to be the top loser on the Nifty 50. On Tuesday, the company’s chairman told https://economictimes.indiatimes.com/industry/cons-products/fmcg/unsure-if-demand-will-stay-inflation-a-concern-for-2022-nestle-india-chairman-suresh-narayanan/articleshow/86386070.cms local media there were no sure signs that sustained consumption is here to stay.



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Know how banks, financials performed this week, BFSI News, ET BFSI

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Domestic benchmark indices Sensex and the Nifty snapped their 3-day winning run yesterday, of which state-owned banks were among the major losers. The market has been showing signs of correction, with investors resorting to profit booking after a stellar record-setting spree.

Among sectors, public sector banks lost the most, while private banks gained the most today.

On Friday, banking and financial services stocks were in focus after Finance Minister Nirmala Sitharaman announced the much-awaited bad bank.The Nifty Bank scaled the crucial 38,000-level mark for the first time ever, and a fresh lifetime high of 38,112.75.

The BSE Sensex has gained around 9% over the last month. Stock-specific moves, weak cues from Asian markets, inflation data, revival of economic activity in Europe, improving economic data and healthy pick up in India’s daily inoculations were considered key driving factors this week.

Monday Closing bell: Indices end flat on negative bias, Nifty Bank falls

Domestic equity indices ended in the red on Monday, with BSE Sensex down 0.2% at 58,177 points and Nifty 50 down 0.08% at 17,355. However, mid and smallcap stocks outperformed other sectors, with BSE Midcap index closing 0.32% higher and the smallcap index ending with a gain of 0.80%.

Nifty Bank and Nifty Financial Services closed 0.58% and 0.19% lower, respectively. ICICI Bank, HDFC Bank and SBI Life Insurance were top laggards among Sensex stocks, while Kotak Mahindra Bank, Bajaj Finserv, Chola Invest and Power Finance were top gainers.

Tuesday Closing bell: Indices end with mild gains, broader markets outperform

The BSE Sensex closed at a high of 58,247 points, up 69 points, and the Nifty 50 rose 25 points to end at 17,380, a record closing high for the benchmark. Broader markets outperformed the benchmarks as both mid and small-caps were up 1% each.

Bank Nifty opened higher and made an intraday high of 36840 but failed to sustain higher levels. It closed with a gain of 0.38%, and Nifty Financial Services closed at 18,103, down 0.13%.

Weekly Market Wrap Up: Know how banks, financials performed this week

Wednesday Closing bell : Sensex, Nifty end at record closing highs

Headline indices Sensex and Nifty 50 ended at record closing highs, with both indices up nearly 1% each. The Sensex closed at 58,723 points, up 0.82%, while Nifty closed the day at 17,519, up 0.80%. BSE Midcap and Smallcap indices closed 0.65% and 0.86% higher, respectively.

Nifty Bank closed 0.65% higher at 36,852, while Nifty Financial Services ended at 18,158, up 0.30%. SBI, IndusInd Bank and HDFC were among the top gainers, while Axis Bank and HDFC Bank were among the top laggards.

PSU bank index jumped 2.83% with J&K Bank, Bank of Baroda, IOB, Indian Bank gaining 2.7% each.

Thursday Closing bell: Market closes at record highs again; banks, financials outperform ahead of FM announcement

Domestic benchmark indices ended at record closing highs on Thursday. Banks and financials outperformed all the sectors, ahead of Financial Minister Nirmala Sitharaman’s bad bank announcement.

BSE Sensex jumped 418 points to end above 59,100 mark for the first time at 59,141, while the Nifty 50 index ended at 17,629.50, rising 0.63%. BSE Midcap and Smallcap indices also hit their fresh record highs intraday, and closed 0.48% and 0.08% higher, respectively.

Among sectors, the Nifty PSU Bank index jumped 5.43%, while the Nifty Private Bank index clocked a gain of 2.67% . The Nifty Bank index rose 2.22%, while Nifty Financial Services gained 1.09%. Induslnd Bank emerged as the top gainer jumping 7% followed by SBI, Kotak Mahindra Bank, ICICI Bank, Axis Bank and HDFC Bank.

Friday Closing Bell: Sensex and the Nifty snapped 3-day winning streak, PSU banks gain

Having scaled fresh highs in early deals, benchmark indices lost steam as investors were seen booking profits after the three-day winning streak. Losses were led by PSU banks, auto, pharma stocks. BSE Sensex ended 0.21% lower at 59,016, while the Nifty 50 index fell 0.25% to settle at 17,585. BSE Midcap index fell 1.14% and the BSE Smallcap index closed 1.06% lower.

Bank Nifty ended at 37,811, up 0.38%, while Nifty Financial Services rose 0.65% ending at 18,476. Nifty PSU Bank index fell more than 3%, with Bank of Baroda losing 4.37%, by IOB, UCO Bank and Bank of India.

Key Industry takeaways

Retail inflation softens to 4-month low in August at 5.3%

Weekly Market Wrap Up: Know how banks, financials performed this week
Retail inflation based on Consumer Price Index (Combined) eased to a four-month low of 5.3% in August due to moderation in food prices along with a high base effect, data released by the National Statistical Office (NSO) on 13 September showed.

The August inflation print is within the targeted range of 2±4 per cent of the Reserve Bank of India (RBI) though this is the seventh consecutive month of an inflation print higher than 5 per cent and 23rd consecutive month of it being above the RBI’s target of 4%.

SREI’s Rs 35,000-crore loan may be classified as NPA

Banks may classify Rs 35,000 crore loan given to SREI group as Non Performing Asset (NPA) by the end of this quarter after the National Company Law Tribunal (NCLT) set aside the previous order restraining banks from such classification.

According to analysts’ estimates, Indian Bank and Canara Bank have exposures of Rs 2,000 crore and Rs 1,200 crore, respectively, to Srei group, while ICICI Bank and Axis Bank have Rs 800 crore each.

Sebi proposes to tighten timeline for filing settlement applications

The Securities and Exchange Board of India on Tuesday proposed to tighten the timeline of settlement mechanism, whereby it suggested fixing the total timeframe for filing the application at 60 days after receipt of the notice to show cause.

The total timeframe for filing the application for settlement may be fixed at 60 days of the date of receipt of the show-cause notice or the supplementary notice, whichever is later, Sebi said in a consultation paper.

Finance Minister Sitharaman announces bad bank

Weekly Market Wrap Up: Know how banks, financials performed this week
Finance Minister Nirmala Sitharaman announced the much-awaited bad bank on Thursday, and said that the Union Cabinet approved on Wednesday the sovereign backing of up to Rs 30,600 crore for the securities receipts.

The planned National Asset Reconstruction Company Ltd (NARCL) will issue securities receipts to banks as it takes on non-performing assets from their books. These securities receipts will be valid for five years.

Mahindra Finance enters vehicle leasing and subscription business

Mahindra & Mahindra Financial Services Ltd announced on Thursday, its entry into vehicle leasing and subscription business, under the brand name ‘Quiklyz’.

Under this model, consumers can pay a monthly fee to access a vehicle of their choice across all car brands, at a lower price as against regular ownership.

IDFC Board approves initiating steps to divest mutual fund business:

Weekly Market Wrap Up: Know how banks, financials performed this week
The board of directors of IDFC Ltd and IDFC Financial Holding Co Ltd at their meetings held on Friday have considered and approved to initiate steps to divest its mutual fund business subject to requisite regulatory approvals, as applicable.

The boards have authorised respective strategy and investment committees to take necessary steps, including appointment of investment banker, for the same.



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Sensex, Nifty end lower today; banks, financials fall, ICICI Bank, SBI Life among top laggards, BFSI News, ET BFSI

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Domestic equity indices ended in the red on Monday, with BSE Sensex down 0.2% at 58,177 points and Nifty 50 down 0.08% at 17,355. Mid and smallcap stocks outperformed the market today, with BSE Midcap index closing 0.32% higher and the smallcap index ending with a gain of 0.80%.

Nifty Media, Nifty Metal and Nifty Realty were among the other indices rose today. The remaining sectoral indices fell, which includes Nifty Bank Index and Nifty Financial Services down 0.58% and 0.19%, respectively.

ICICI Bank, HDFC Bank and SBI Life Insurance were the top laggards among Sensex stocks. While Kotak Mahindra Bank, Bajaj Finserv, Chola Invest and Power Finance emerged were among the top gainers in the index.

Stock Talk

SBI Life Insurance Company:

Canada Pension Plan Investment Board has offloaded 2.3 crore equity shares in SBI Life at Rs 1,171.07 per equity share, while BNP Paribas Arbitrage bough 96,35,692 equity shares at Rs 1,171 per share on BSE, the bulk deals data showed.

Punjab National Bank:

The board has approved raising Rs 6,000 crore through issue of Basel III additional Tier-1 (AT-1) bonds or Tier II bonds or combination of both in one or more tranches.

Indiabulls Housing Finance:

The company has received approval from the Competition Commission of India to divest its mutual fund business and sell it to Groww for Rs 175 crore

Other key takeaways

SREI’s Rs 35,000-crore loan may be classified as NPA

Banks may classify Rs 35,000 crore loan given to SREI group as Non Performing Asset (NPA) by the end of this quarter after the National Company Law Tribunal (NCLT) set aside the previous order restraining banks from such classification.

According to analysts’ estimates, Indian Bank and Canara Bank have exposures of ₹2,000 crore and ₹1,200 crore, respectively, to Srei group, while ICICI Bank and Axis Bank have ₹800 crore each.

India’s inclusion in global bond index to attract $170-250 bln inflows

India could be included in the global bond index early 2022, which can attract $170-250 billion in bond inflows in the next decade, said Morgan Stanley in a recent note.

Investors have been staying away from the Indian bond market for the past few years, given the widening fiscal deficit, above-target inflation and gradual weakening currency. However, recent macroeconomic stability could change early next year, according to analysts at Morgan Stanley.

US Markets

Wall Street ended sharply lower on Friday as investors weighed signs of higher inflation. Shares of Apple Inc tumbled following an unfavorable court ruling related to its app store.

The Dow Jones Industrial Average index fell 0.78% to close at 34,607.72 points, while the S&P 500 lost 0.77% and closed at 4,458.58. The Nasdaq Composite dropped 0.87% to 15,115.49.

Gold prices subdued as firm dollar dims safe-haven appeal

Gold prices were subdued on Monday as the dollar held firm, while cautious investors awaited readings on U.S. consumer prices due this week that could be crucial to the Federal Reserve’s decision on when to exit its super-supportive policy. Spot gold was flat at $1,787.40 per ounce after having recorded a weekly decline of 2.1%.

Market Outlook for the week ahead

-Nifty has been in a narrow range for the last 5 days and any breakout above 17,450, with above average volumes, may take Nifty to 17,550 levels. According to experts, Traders are advised to book profits if Nifty gives a daily close below 17,250 level.

-The market is expected to turn stock specific, and the Nifty will undergo a healthy consolidation this week, making it prudent to stick to the buy on decline strategy to accumulate quality stocks.

-As Nifty is not expected to breach 16900 in its consolidation phase, dips towards psychological level of 17000 would offer incremental buying opportunity in this week

– Bank Nifty is expected to form a higher base above the upper band of the recent range breakout area (36200). Experts stick with a positive stance with Bank Nifty gradually heading towards 37700 levels in September. Any breather in the coming week would offer an incremental buying opportunity in quality banking stocks.



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What to expect from the week ending September 17, 2021, BFSI News, ET BFSI

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Nifty march takes a break: Nifty was on a one way trip after breaking the 16,000 barrier. However, it then decided to take a pause. Nifty’s gain during the last week was just 46 points or 0.3%. Increasing number of delta covid variant cases and its negative impact on the global economy continues to be the main worry. However, central bankers continue to support the economy. For instance, European Central Bank (ECB), in its recent meeting, has signalled that it will only slightly reduce its emergency bond purchases over the coming quarter.

In addition to the increasing pace of vaccination, market sentiment is also buoyed by continued support by RBI and government of India.

“India’s domestic and external dynamics remain strong with both government and the RBI continuing to take appropriate policy decisions which will continue to act as tailwind to economic recovery as well as equity markets performance,” says Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance.

Though Nifty is capable of climbing to 17,600 level,—the upper end of the rising channel, technical analysts were expecting this pause. As mentioned in previous week, Nifty may even fall to its support band of 17,000 – 17,170 before climbing back to 17,600. 17,170 is a good support now because it was a major resistance earlier. Despite Nifty going up, 17,000 continues to be the major point for Nifty put option writers. For instance, the open interest at 17,000 is placed at 84,843 contracts, compared to 23,223 contracts at 17,100, 36,725 at 17,200 and 34,263 at 17,300. Since the metal prices are still trading at higher levels (eg aluminium prices hit a 13 months high recently), the next upmove may be triggered by metal stocks.

(Narendra Nathan/ET Bureau)

Sector update: Engineering & Capital Goods

Tendering shows signs of uptick

April-August tendering grew 13% y-o-y on the back of higher tendering in the power, T&D and road segments. While tendering in the rail segment was flat, water and real estate saw a decline. The road segment accounted for the largest share of tenders, 30% of overall tenders. Water/railways/irrigation tenders accounted for 11-14%/8%/6-14% of total tenders during the April-August period. For July-Aug 2021, the pace of tendering activity exceeded the April-June 2021 level (by 15%), led by road, power equipment, railways and water supply, indicating a healthy pickup in capex activity.

Awarding activity
YTD awarding activity increased by more than 67% y-o-y on a low base. The 2-year CAGR for this period stood at 28%. road/power T&D/railways/real estate witnessed strong growth. Excluding the road segment, the 2-year CAGR for tenders stood at 14%. Apart from roads, railways/power distribution segments have also seen strong growth in recent years. Roads/railways constituted 26%/16% of the awards during April-August. On account of a large award won by BHEL (Rs 108 billion by Nuclear Power Corp of India), power equipment awards have jumped 6x in the second quarter, leading to growth of 18% in overall awards during the period, further supported by roads and water supply.

Central and state capex
For the April-July1 period, the Central government achieved 23% of its annual budget target with an outflow of Rs 1.28 trillion (up 15% y-o-y). While the overall Central government capex growth during April-July stood in mid-teens, key ministries, roads and railways, reported growth of 110% and 22%, respectively. Taking cues from such figures, developing these sectors, in addition to defence, remains the government’s top priority. Additionally, state government spending (top 15 states) at Rs 565 billion during current financial year (up more than 100% y-o-y) has been far higher than last year’s spending (12% of BE has been achieved vs. 7% y-o-y). On a combined basis (Central + States), capex growth stood at 34% y-o-y.

Credit growth to industries grew marginally by 0.1% y-o-y as of July 2021, while infrastructure credit grew 2.5%. At Rs 10.8 trillion, outstanding infrastructure credit is near the historical high, though it has been in the Rs 10-11 trillion range for the last two years. Overall industrial credit outstanding (as % of non-food credit) has gradually declined to 26% as of July 2021 and currently stands at a decadal low. Top picks from Emkay coverage Our top picks in the sector are L&T, KEC International and Kalpataru Power Transmission, considering their superior execution capabilities, existing order backlog, and relative valuations.

(Emkay)



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Know how Banks and Financials performed throughout the week, BFSI News, ET BFSI

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Domestic benchmark indices witnessed some exhaustion this week, after a healthy rally seen in the past weeks, with the BSE Sensex gaining around 9% last month.

Developments around the US economy, revival of activity in Europe amid rising Covid-19 infections, improving economic data, positive earnings expectations and healthy pick up in daily inoculations were considered to be key market driving factors this week.

Last Friday, the BSE Sensex vaulted above the 58,000-mark, while the Nifty50 touched 17,300 points as investors cheered recovery in the economy.

Monday Closing bell: Market continues winning streak; banks and financials underperform

The Nifty50 had a gap up opening, but couldn’t build upon the early gains. The index traded in a narrow range throughout the day and consolidated its gains. During the second half, markets continued to trade on a positive note on the back of strong global cues and domestic economic activity. The Sensex was up 0.29% at 58,296.91, and the Nifty was up 0.31% at 17,377.80.

Bank Nifty closed with losses, ending 0.5% lower at 36,592 points, while Nifty Financial Services closed 0.3% lower at 18,077 points. Shares of IndusInd Bank fell 1.13% as the top laggard, followed by Kotak Mahindra Bank, and HDFC Bank.

Tuesday Closing bell: Market ends in red, banks, financials continue to lose

The Nifty50 had a cautious start on Tuesday, around levels of 17,400. All sectoral indices opened in the green, except for Nifty Bank. Domestic indices reached fresh all-time highs but failed to hold gains and ended the day with marginal losses. The Sensex closed at 58279.48 points, down 0.03%, while Nifty closed at 17362.10, down 0.09%.

Bank Nifty ended the 0.34% lower at 36,468 while Nifty Financial Services closed at 18,102 gaining 0.15%. Axis bank was among the top Nifty Losers while HDFC and IndusInd Bank were among the top gainers.

Wednesday Closing bell : Indices tad down; banks, financials among top gainers

Domestic equity indices rebounded from lows in the dying hour of trade to end flat with a negative bias, with mid and smallcaps outperforming the benchmarks. The Sensex and Nifty both ended flat, down 0.05% each at 58,250.26 points and 17,353.50 points, respectively.

Among sectors, Nifty Bank, private bank, PSU bank and financial services rose about a percent each. Bank Nifty gained 0.82% to end at 36,768, while Nifty Financial Services gained 0.57% closing at 18,207. Kotak Mahindra Bank jumped 3.5% to be the top index gainer.

Thursday Closing bell: Market closes on positive note; banks, financials underperform

Domestic indices started Thursday’s session on a flat note amid selling pressure seen in financial stocks. Sensex and Nifty both closed with a gain of 0.09%, higher at 58,305.07 and 17,369.25 respectively.

Nifty Bank ended in red at 36,683 down 0.23%, while Nifty Financial services closed at 18,160, down -0.26%. Kotak Bank and Bajaj Finserv were among top blue-chip performers. HDFC Bank, IndusInd Bank and SBI were among the volume toppers. Meanwhile, SBI Life, Axis Bank, Federal bank and Chola Invest were among the top losers.

Industry Key Takeaways

Tamilnad Mercantile Bank files IPO papers with SEBI
Private-sector lender Tamilnad Mercantile Bank has filed preliminary papers with Securities and Exchange Board of India to mop-up funds through an initial share-sale. The initial public offering (IPO) comprises fresh issue of 15,827,495 equity shares and an offer-for-sale of up to 12,505 equity shares by selling shareholders, according to the draft red herring prospectus (DRHP).

LIC Housing Finance partners with India Post Payments Bank
India Post Payments Bank (IPPB) and LIC Housing Finance on Tuesday announced a strategic partnership for providing home loan products to over 4.5 crore customers of IPPB. LIC Housing Finance was quoting at Rs 416.10, up Rs 11.35, or 2.80% on the BSE.

India’s fintech market to triple to ₹6.2 lakh cr by 2025: MoS Finance Karad
The government’s various initiatives have led to fast growth in the fintech sector, which is likely to triple to ₹6,20,700 crore in value terms by 2025, minister of state for Finance Bhagwat K Karad said on Wednesday.

Highlighting that India is a leader in adopting financial technology among emerging markets, he said, the country had an adoption rate of 87% in March 2020, as compared to the global average of 64%.

Paytm Money launches investment advisory marketplace on platform
Paytm Money, the wealth management division of digital payments major Paytm, on Tuesday said it is creating a wealth and investment advisory marketplace on its platform to offer curated advisory services and products to retail investors.

Paytm Money has partnered with investment startup WealthDesk to offer investment portfolios called ‘WealthBaskets’. A ‘WealthBasket’ is a custom portfolio of stocks and exchange traded funds (ETFs) created by SEBI-registered investment professionals.

India to post strong GDP growth in coming quarters: S&P
India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated, S&P Global Ratings said on Wednesday.

The economy is expected to clock 9.5 percent growth in the current fiscal year, followed by 7% expansion in the next year, it said, adding high nominal GDP growth would be important for ensuring fiscal consolidation going forward

Kotak Mahindra Bank slashes home loan rates by 15bps to 6.5%
Kotak Mahindra Bank announced today that it has reduced home loan rates by 15 base points, from Friday till November 8.

The bank is offering this rate in view of the upcoming festive period. The rate of 6.5% will be prevalent for both fresh home loans and balance transfers, and will be available across all loan amounts and is linked to a borrower’s credit profile.

UCO Bank shares spike 16% after RBI lifts PCA restrictions
UCO Bank shares received strong buying demand, rising as much as 15.9 percent on September 9 after the Reserve Bank of India lifted Prompt Corrective Action (PCA) restrictions on the bank.

“The performance of the UCO Bank was reviewed by the Board for Financial Supervision under the RBI. As per published results for the year ended March 31, 2021, the bank is not in breach of the PCA parameters,” said the RBI in its press release published on September 8.



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SGX Nifty up 5 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic indices look set to take a breather on Tuesday after hitting record highs for three straight sessions. Technical charts are sending tepid signals while cues from Asian markets are also mixed as US markets were shut overnight on account of a public holiday. Dollar quoted near its recent lows while weak demand dragged crude prices lower. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a flat start
Nifty futures on Singapore Exchange traded merely 4.5 points, or 0.03 per cent, higher at 17,423.50, signaling that Dalal Street was headed for a tepid start on Tuesday.

  • Tech View: Nifty50 on Monday ended up forming a ‘Doji’ candle on the daily chart, suggesting indecisiveness among market participants at record highs.
  • India VIX: The fear gauge gained over 4 per cent to 15.10 level on Monday over its close at 14.54 on Friday.

Asian stocks mixed in early trade
Asian markets opened mixed on Tuesday, with investors cheered by the prospect of possible new economic stimulus under a future Japanese prime minister. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.13 per cent.

  • Japan’s Nikkei rallied 0.80%
  • Korea’s Kospi tanked 0.67%
  • Australia’s ASX 200 shed 0.39%
  • China’s Shanghai gained 0.02%
  • Hong Kong’s Hang Seng added 0.15%

US stocks shut on Monday
The US stock markets remained closed on Monday on the account of Labour day. On Friday, Wall Street ended mixed as the Nasdaq ended at a new peak but the other main Wall Street indices fell, reflecting the mixed sentiments.

  • Dow Jones shed 0.21% to 35,369.09
  • S&P 500 retreated 0.03% to 4,535.43
  • Nasdaq added 0.21% to 15,363.52

Dollar nears recent lows
The dollar hovered near recent lows as traders braced for a slew of central bank meetings from Australia to Europe and Canada this week, looking for any signs that they are making progress towards policy normalisation.

  • Dollar index slipped to 92.115
  • Euro gained to $1.1881
  • Pound steady at $1.3848
  • Yen firmed to 109.76 per dollar
  • Yuan appreciated to 6.4566 against the greenback

Oil wobbles on demand woes
Oil prices were wobbly on Monday as investors grappled with demand concerns after Saudi Arabia’s sharp cuts to crude contract prices for Asia. Brent crude futures for November rose 4 cents, or 0.1 per cent, to $72.26 a barrel. US West Texas Intermediate crude for October was at $68.88 a barrel, down 41 cents, or 0.6 per cent, from Friday’s close, with no settlement price for Monday.FPIs buy shares worth Rs 589 crore
Net-net, foreign portfolio investors (FPIs) turned net sellers of domestic stocks to the tune of Rs 589.36 crore, data available with NSE suggested. DIIs were buyers of equities to the tune of 547.31 crore, data suggests.

MONEY MARKETS

Rupee: The rupee on Monday declined by 8 paise to close at 73.10 against the US currency mainly due to the dollar’s gains in the global markets.

10-year bond: India’s 10-year bond yield jumped 0.28 per cent to 6.17 after trading in the 6.13 – 6.18 range.

Call rates: The overnight call money rate weighted average stood at 3.16 per cent on Friday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • AU RBA Interest Rate Decision (10 am)
  • GB Halifax House Price Index AUG (11:30 am)
  • EA Employment Change Final Q2 (2:30 pm)
  • EA GDP Growth Rate 3rd Est Q2 (2:30 pm)
  • US 52-Week Bill Auction (9 pm)
  • US 3-Year Note Auction (7:30 pm)
  • US 6-Month Bill Auction (7:30 pm)
  • JP Leading Economic Index Prel JUL (10:30 am)
  • JP Coincident Index Prel JUL (10:30 am)

MACROS

Govt can bring Voda Idea $1b annual relief
A combination of reduced interest on deferred spectrum liability and an interest waiver on its adjusted gross revenue (AGR) dues can garner nearly $1 billion in annual relief for struggling Vodafone Idea (Vi) and boost its chances of survival, BNP Paribas said in a client note. It added that the loss-making telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group would be able to further cut its current Rs 1.9 lakh crore debt burden if the government allows it to surrender unused spectrum in non-priority markets, moves that would help the telco reduce the net present value (NPV) of its overall liabilities and improve future cash flows.

Third-party apps turn on UPI Autopay mode
The National Payments Corporation of India (NPCI) UPI Autopay service, which was launched last year, is gaining traction after a slow start with top merchants such as Netflix and Hotstar signing up. Unified Payments Interface (UPI) apps PhonePe and Google Pay are also in various stages of rollout and testing. The build-up in transaction momentum comes ahead of Reserve Bank of India (RBI) rules for card-based transactions through standing instructions that take effect next month.

Voda, Cairn flag terms for settling retro tax cases
Vodafone Group and Cairn Energy have raised concerns over proposed terms for settling retrospective tax cases that require them to provide declarations from stakeholders that they will not press any claims after the disputes are resolved. The two British companies raised these issues in feedback on draft rules issued by the Central Board of Direct Taxes (CBDT) last month.

India Inc talks to govt to gauge Afghan climate
The Indian industry has approached the government to assess its investments in Afghanistan and take a call on a plan of action — to continue, pull out or wait and watch. Industry groupings have also had talks internally on the matter and are awaiting political clarity.

Treating ESOPs as expense to erode earnings: Lenders
Bankers are either abandoning or cutting down on stock option plans and redrawing compensation for top executives as they shift to deferred bonus payments following the Reserve Bank of India’s diktat to add employee stock ownership plan (ESOP) as expenses in the profit and loss account.



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Key factors driving the market, BFSI News, ET BFSI

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NEW DELHI: Traders were cautious ahead of key jobs data from the US, but benchmark indices gained for a second straight day on Friday. Financials and auto stocks were in demand, while select IT names saw selling.

The exuberant retail investors have been buying on every dip. This ‘buy on dips’ strategy has been rewarding retail investors and, therefore, they can be expected to continue with that strategy until there is a sharp correction and negative signals in the market, said an analyst.

“Sensex achieved another milestone of 58k and it is surprising the street by its ferocious move and creating new history almost every day. This bull run has more legs to go and it is just a matter of time when Sensex will cross the 60,000 mark,” said Santosh Meena, Head of Research, Swastika Investmart.

“Technically, 58700 is an immediate target level while 57500 is immediate support whereas 56300-56000 will be a strong demand zone at any correction.”

How are the bluechips doing?
After opening in the green, benchmark indices maintained their lead. At 1.38 pm, BSE flagship Sensex was up 274 points or 0.47 per cent to 58,126. NSE benchmark Nifty rose 70 points or 0.41 per cent to 17,304.

In the 50-share pack Nifty, Eicher Motors was the biggest gainer, up 3.10 per cent. Titan, ONGC, Kotak Mahindra Bank, Hero MotoCorps and Reliance Industries were among other gainers.

HDFC Life Insurance was the top loser in the pack, down 2.31 per cent. Cipla, HCL Tech, Shree Cement, HUL, Hindalco, Tech Mahindra and UltraTech Cements were among those that traded in the red.

FACTORS DRIVING MARKETS
Yields, dollar flat: US treasuries have been cautious ahead of the data release, and in Asian hours on Friday the yield on benchmark 10-year Treasury notes was 1.2919 per cent compared with its US close of 1.294 per cent on Thursday. The dollar stayed pinned at month lows against a basket of currencies with the euro doing a fair amount of the work.

US jobs data: There is some caution ahead of the upcoming jobs data on Friday. The Labor Department will release the non-farm payrolls report for August at 1230 GMT. Solid jobs recovery is an important criteria for the US central bank to start paring pandemic-era stimulus measures.

Broader markets
Broader market indices were trading higher, outperforming their headline peers. Nifty Smallcap was up 0.56 per cent, while Nifty Midcap added 0.62 per cent. Broadest index on NSE, Nifty 500 was up 0.43 per cent.

Trident, Vakrangee, IRB Infra Developers, Exide Industries, Prestige Estates, L&T Tech Services were gainers from the space while Adani Total Gas, JSW Energy, Crompton Greaves, CAMS, Rites and Affle India were under selling pressure.

Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was broadly flat in early trading in Asia having posted gains in eight of the last nine sessions as the benchmark edges back towards its position in mid July before Chinese regulatory crackdowns sent shares tumbling.

Japan’s Nikkei rose 0.38 per cent, and MSCI’s all-country world index edged higher having ended the previous session at its fifth consecutive closing high.

Australia was up 0.3 per cent and Korea rose 0.61 per cent while Chinese blue chips fell 0.27 per cent and Hong Kong dropped 0.6 per cent right after the bell, as traders try to balance weaker economic data out of China against the potential for future stimulus.



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SGX Nifty up 5 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic stocks are likely to open on a muted note on Friday, ahead of a crucial US jobs data scheduled for later in the day. Asian stocks were trading mixed while US stocks closed marginally higher overnight. The dollar was trading near a one-month low level. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a flat start
Nifty futures on the Singapore Exchange traded 3.5 points, or 0.02 per cent, higher at 17,256, signaling that Dalal Street was headed for a muted start on Friday.

  • Tech View: Nifty50 on Thursday formed a bullish candle on the daily chart and made a higher high-low formation for the fourth successive day, suggesting more gains ahead for the index.
  • India VIX: The fear gauge gained marginally to 14.24 level on Thursday over its close at 14.18 on Wednesday.

Asian stocks mixed in early trade
Asian markets opened mixed on Friday as investors took heart from US rallies with investors looking ahead to US job data due later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.21 per cent.

  • Japan’s Nikkei gained 0.33%
  • Korea’s Kospi jumped 0.47%
  • Australia’s ASX 200 added 0.50%
  • China’s Shanghai dropped 0.22%
  • Hong Kong’s Hang Seng tanked 0.91%

US stocks ended higher
The S&P500 index and Nasdaq Composite squeaked to record highs as Wall Street’s main indices all ended Thursday in positive territory, with higher commodity prices helping energy names recover ground and the latest jobs data leaving investors unfazed from existing positions.

  • Dow Jones gained 0.37% to 35,443.82
  • S&P 500 jumped 0.28% to 4,536.95
  • Nasdaq added 0.14% to 15,331.18

Dollar nears one-month low level
The dollar sank to its lowest in almost a month against major rivals on Friday, ahead of a crucial U.S. jobs report that could spur the Federal Reserve to an earlier tapering of stimulus.

  • Dollar index slipped to 92.193
  • Euro edged up to $1.1878
  • Pound gained to $1.3844
  • Yen held at 109.915 per dollar
  • Yuan at to 6.4587 against the greenback

FPIs buy shares worth Rs 349 cr
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 348.52 crore, data available with NSE suggested. DIIs were buyers to the tune of Rs 381.7 crore, data suggests.

MONEY MARKETS
Rupee: The domestic currency settled with a marginal gain of 2 paise at 73.06 (provisional) against the US dollar on Thursday despite a sustained rally in domestic equities.

10-year bond: India’s 10-year bond yield declined 0.45 per cent to 6.17 after trading in 6.17 – 6.21 range.

Call rates: The overnight call money rate weighted average stood at 3.19 per cent on Wednesday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • IN Markit Composite PMI AUG (10:30 am)
  • IN Markit Services PMI AUG (10:30 am)
  • IN Foreign Exchange Reserves 27/AUG (5 pm)
  • US Non Farm Payrolls AUG (6 pm)
  • US Unemployment Rate AUG (6 pm)
  • US Average Weekly Hours AUG (6 pm)
  • US Average Hourly Earnings YoY AUG (6 pm)
  • US Markit Services PMI Final AUG (7:15 pm)
  • US Markit Composite PMI Final AUG (7:15 pm)
  • EA Retail Sales MoM JUL (2:30 pm)
  • EA Retail Sales YoY JUL (2:30 pm)
  • EA Markit Services PMI Final AUG (1:30 pm)
  • EA Markit Composite PMI Final AUG (1:30 pm)

MACROS

FMCG, electronic sales down
Sales of groceries, essentials, smartphones and electronics in August fell sharply, especially in the second half of the month after pent-up demand fizzled out post the Independence weekend sale season.

Rupee regains 72 level on bond issues, inflows
Similar to the equities market, the gain in the rupee has been sharp and sudden with an appreciation of 1.5% in five trading sessions. Dealers said that the domestic currency was buoyed by positive sentiment in the equities market.

Crypto will be a commodity
The government is planning to define cryptocurrencies in the new draft bill that also proposes to compartmentalise virtual currencies on the basis of their use cases, ET reported. Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per user case — payments, investment or utility.

No immediate trigger for gold
An astounding bull run in local equity markets amid the Covid-19 pandemic has taken the shine off gold — historically, one of the most in-demand assets during a crisis. Portfolio managers say there is no immediate trigger for a spike in gold prices and the yellow metal should ideally be not more than 10% in one’s investment portfolio as the economy is showing signs of recovery.

ICRA revises steel sector outlook
Indian steel industry’s consolidated borrowings are at their lowest levels since March 2012, said ICRA. The rating company has also revised the steel sector’s outlook to ‘positive’ from stable on account of better-than-expected performance of India’s top steelmakers in the first quarter ending June.



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Bank, realty, pharma may continue to outperform now, BFSI News, ET BFSI

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After a strong move of over 400 points on the upside, Nifty on Wednesday did consolidate on the expected lines. However, it showed a lot of internal strength. The index opened on a modestly positive note and got stronger in the first hour of the trade.

Just when it looked as if the market was continuing with its unabated rise, some profit taking kicked in on the anticipated lines. Nifty came off over 175 points from the intraday high point. While Nifty did not display any extraordinary weakness, it ended the day with a net loss of 55.95 points, or 0.33 per cent.

The weekly options expiry falls on Thursday and options data is showing a mixed picture. On one hand, very high Call OI open addition was seen at 17,000 level even as the 17,100 level held the highest Call OI. On the other hand, strike price 17,000 not only saw the addition of highest Put OI, but it also held the maximum PUT Open Interest as well. This means unless there is a tactical change on either side, the market may stay capped in a limited range.

Volatility declined as was evident from INDIA VIX coming off 2.30 per cent to 14.1850.

A steady but soft start for the market is expected on Thursday. The 17,100 and 17,145 levels may act as immediate resistance points, while supports will come in at 17, 010 and 16,970 levels.

The Relative Strength Index (RSI) on the daily chart stood at 78.57. RSI stays in the overbought territory. However, it remains neutral and does not show any divergence against the price. The daily MACD remains bullish and continues to trade above the Signal Line.

A Black Body occurred on the candle. This was the result of the market closing below its opening level. Apart from this, no other important formation was noticed. Banking stocks put up a resilient performance. Along with them, realty stocks also performed strongly. This is a classic case of the sectors that have relatively underperformed Nifty in the recent past trying to play catchup. This fabric of the market is likely to persist for some more time.

We expect banking, realty and pharma stocks to continue to show improved relative performance in the coming days. Since the possibility of a range-bound consolidation is not ruled out now, we recommend staying highly defensive while approaching the market. While shorts may be avoided as the market undercurrent remains strong, all profits on the long side should be vigilantly protected.

(Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of EquityResearch.asia and ChartWizard.ae and is based at Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)



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Zen Tech soars 20%; Bank of India bleeds, BFSI News, ET BFSI

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New Delhi: After a strong rally, the domestic equity market took a breather on Wednesday and settled lower, thanks to profit booking in IT, financial and metal stocks. Despite favourable GDP data, benchmark indices were unable to hold on to their early gains.

The 30-share pack Sensex shed 214.18 points or 0.37 per cent to close at 57,338.21. Its broader peer NSE Nifty declined 55.95 points or 0.33 per cent to 17,076.25. Nifty scaled 17,200 mark for the first time ever. Broader markets outperformed, ending the day higher.

Midcap and smallcap stocks were high in demand. Zen Technologies ended the day on upper circuit, whereas RPG Life Science and ABB Power Products gained. The stocks part of F&O segment’s latest inclusion continued their rally.

Here is a look at some of the biggest movers and shakers of Wednesday’s session:

TOP GAINERS OF THE DAY

Zen Technologies: The defence equipment maker hit upper circuit of 20 per cent to Rs 116.50, its new 52-week high as the the order book of the company stood at Rs 402.6 crore on September 1, 2021 as against Rs 191.6 crore on June 30, 2021. It bagged orders worth Rs 211 crore during July-August 2021 period.

RPG Life Science: The pharmaceutical firm soared 14 per cent to Rs 567.15 after the annual general meeting of the company where it declared a dividend of Rs 7.20 per equity share for the financial year ended March 31, 2021.

ABB Power Products and Systems India: The electricity grid equipment manufacturer was abuzz over reports of asset monetization plan, which was recently announced by the government. It settled at Rs 13 per cent higher at 2,416.45.

BF Investment: The holding company zoomed 12 per cent to Rs 385.15 after the company informed the bourses about its annual general meeting, scheduled on September 30.

Orient Paper: The paper product producer zoomed 11 per cent to Rs 32.05 on the back of reopening of schools in multiple states in India. The company is the largest producer of educational paper in the country.

Indian Energy Exchange: The spirits of the power exchange have been high ever since its inclusion in the F&O segment. Also, there are expectations on increasing bids on the exchange. It added 11 per cent before closing at Rs 560.50 for the day.

Oberoi Realty: The real estate major advanced 11 per cent to Rs 778.05 after its inclusion in the F&O segment from October 1. NSE notified its entry along with seven others.

TOP LOSERS OF THE DAY

Vikas EcoTech: The speciality chemical player hit a lower circuit of 5 per cent to Rs 2.09. The microcap has decided to increase its authorized share capital and allot share via rights issue. The company is looking to change its name.

Bank of India: The state owned lender declined over 4 per cent to Rs 63.55 after the company announced a qualified institutions placement (QIP) of 2,550 crore at an issue price of Rs 62.89 apiece.

Shree Renuka Sugars: The sugar producer shed 5 per cent, its lower circuit limit, to Rs 23.95. It continued to bleed after posting losses in the June 2021 quarter. It has fallen up to 30 per cent in the last one month despite ratings upgrades.

Gayatri Projects: BSE has sought clarification from the construction & engineering player with reference to significant movement in price to safeguard the interest of the investors. The scrip tanked over 4 per cent to Rs 48.30.



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