Sensex Zooms 1,030 Points, Nifty Tops 14,980-Mark; HDFC Bank Among Top Gainers
Closing

Indian share markets witnessed huge buying interest during the extended closing hours today and ended their day on a strong note.

Equity markets witnessed sharp gains after the trading resumed post the technical glitch on NSE. The Nifty jumped over 14,950, while Sensex jumped more than 1,050 points during the extended trading hours.

Note that trading was halted on the NSE today due to a technical glitch and market trading timing for both the exchanges - BSE and NSE - was extended till 5:00 pm.

At the closing bell, the BSE Sensex stood higher by 1,030 points (up 2.1%).

Meanwhile, the NSE Nifty closed higher by 274 points (up 1.8%).

Coal India and HDFC Bank were among the top gainers today.

Power Grid was among the top losers today.

The SGX Nifty was trading at 15,017, up by 303 points, at the time of writing.

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The BSE Mid Cap index ended up by 0.8%. The BSE Small Cap index ended up by 1.1%.

Sectoral indices ended on a positive note. Gains were largely seen in the banking sector and finance sector which ended the day up by 3.7% and 3.3%, respectively.

Asian share markets ended deep in the red.

The Nikkei was down 1.6% while the Shanghai Composite stood lower by 1.9%. The Hang Seng ended down by 2.9%.

US stock futures are trading higher today indicating a positive opening for Wall Street indices with Dow Futures trading up by 28 points (up 0.1%).

The rupee is trading at 72.36 against the US$.

Gold prices for the latest contract on MCX are trading flat at Rs 46,782 per 10 grams.

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Speaking of stock markets, in the latest episode of Investor Hour Podcast, ace trader Brijesh Bhatia talks about the best investments of 2021 and his profitable trading system.

In the episode, Brijesh spoke about the best investments of the year and also shared his views on the Nifty, gold, silver, bitcoin, his top trading themes for 2021 and much more.

You can watch the entire episode here:

In news from the IPO space...

The initial public offering (IPO) of agrochemical manufacturer Heranba Industries was subscribed 1.9 times at the time of Indian stock market closing hours today - the second day of bidding.

The retail investors have put in bids 3.5 times against their reserved portion, while the portion set aside for non-institutional investors has been subscribed 61%, and that of qualified institutional buyers 2%.

The agrochemical company's IPO includes a fresh issue of Rs 600 million and the remaining is an offer for sale (OFS) by existing investors.

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The price band for the issue has been fixed at Rs 626-627 per share.

Heranba Industries is a crop protection chemicals manufacturer, exporter and marketing company. It has over 9400 dealers/distributors across 16 states and 1 Union Territory in India and exports to over 60 countries across the Middle East, South East Asia and Africa.

How this IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

Moving on to stock specific news...

Nava Bharat Ventures was among the top buzzing stocks today.

Shares of Nava Bharat Ventures witnessed huge buying interest today after the company announced that its board will consider share buyback proposal on Friday, February 26.

The firm, on Tuesday after market hours, informed the stock exchanges that the meeting of the board of directors will be held on February 26, 2021, to consider the proposal for buyback of equity shares of the company.

We will keep you updated on all the developments from this space.

Speaking of buybacks, as a shareholder in cash rich companies, you should not only be wary of expensive buybacks. But if possible use it to your advantage to rake in some cash.

As per Rahul Shah, co-head of Research, investors should not assume buybacks are always good. Here's an excerpt of what he wrote:

  • The reason behind the buyback must be investigated. At the end of the day, an increase in earnings should be more a function of the inherent robustness of the business, as that's what will help it continue to grow at a healthy pace.

In news from the defence sector...

Bharat Forge share price was also in focus today as the company has won an order worth Rs 1.7 billion from the Ministry of Defence for supply of Kalyani M4 vehicles.

The firm inked a pact with global aerospace and technology firm Paramount Group to manufacture armoured vehicles in the country.

The management of the company said this collaboration brings together the manufacturing and technology excellence of two leading companies, which have matching synergies and complementary capabilities. The Kalyani M4 is a fantastic new generation vehicle, and the company wants to position it as the future of protection in all markets world-wide.

Kalyani M4 is a multi-role platform, designed to meet the specific requirements of armed forces for quick mobility in rough terrain and in areas affected by mine and IED threats.

Speaking of the defence sector, have a look at the chart below which shows the top 5 military spending countries in the world as of 2019:

According to a SIPRI (Stockholm International Peace Research Institute) report, India was the third largest military spending country in the world in 2019.

Here's what we wrote about it in one of the editions of Profit Hunter:

  • If you look at the chart closely, you will realise it is likely to remain among the top spenders in the coming years.

    It's because of the second largest spender shown in the chart, China.

    With rising tensions between the two countries, the incentive is strong for India to keep up with China.

    It all makes sense for the government to focus on this sector in a big way in the near future.

    The government's 'Atmanirbhar' push will get a massive boost through local defence manufacturing. This will create profitable opportunities in defence stocks for astute investors.

Co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks in the defence space. As per Tanushree, defence will be a big wealth-creating opportunity.

Back in June 2020, she recorded a video about India's best defence stocks.

You can watch the video here: The Upside in India's Best Bulletproof Defence Stocks

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Rises 477 Points; Trading Resumes on NSE
Special Update

Share markets in India are presently trading on a positive note.

Nifty traded in the green at around 3:45 pm after trading resumed on the exchange.

Note that trading was halted on the NSE today due to technical glitch and market trading timing for both the exchanges - BSE and NSE - has been extended till 5 pm today.

At the time of writing, the BSE Sensex was trading up by 477 points. Meanwhile, the NSE Nifty was trading higher by 135 points.

Coal India and HDFC Bank are among the top gainers today.

GAIL, on the other hand, is among the top losers today.

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Gains are largely seen in the banking sector and finance sector.

IT stocks, on the other hand, are witnessing selling pressure.

Shares of Tata Steel and NALCO hit their 52-week highs today.

Talking about Indian stock markets, Rahul Shah, co-head of Research at Equitymaster, in his latest video talks about how one should invest in the current times.

One of the biggest uncertainties in an uncertain world is a huge stock market crash.

Should one make an attempt to predict it or is there any other blueprint that an investor needs to follow?

Rahul discusses these points in the video below. Tune in to find out more:

In other news, the initial public offering (IPO) of agrochemical manufacturer Heranba Industries was subscribed 1.65 times at the time of writing.

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The retail investors have put in bids 3.07 times against their reserved portion, while the portion set aside for non-institutional investors has been subscribed 55%, but the qualified institutional buyers have not put in their bids yet.

Tata Communications share price is in focus as the stock market regulator has granted an exemption to Pantone Finvest from complying with certain requirements of takeover norms with respect to the proposed direct acquisition in Tata Communications.

The exemption granted is subject to certain conditions and is limited to the requirements of making an open offer and pricing condition under the Substantial Acquisition of Shares and Takeovers (SAST) Regulations.

The order came after Pantone filed an application with Sebi seeking exemption from the applicability of certain provisions of SAST norms.

More details to follow in the upcoming commentary. Stay tuned!


Sensex Trades Over 200 Points Higher; Dow Futures Down by 103 Points
12:30 pm

Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 226 points, up 0.5% at 49,977 levels.

Meanwhile, the NSE Nifty is trading up by 113 points.

Coal India and HDFC Bank are among the top gainers today. GAIL and TCS are among the top losers today.

The BSE Mid Cap index is trading up by 0.3%.

The BSE Small Cap index is trading up by 0.6%.

On the sectoral front, stocks from the banking sector, are witnessing most of the buying interest.

On the other hand, stocks from the IT sector are witnessing most of the selling pressure.

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US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down 104 points (down 0.8%) while Dow Futures are trading down by 103 points (down 0.3%)

The rupee is trading at 72.29 against the US$.

Gold prices are trading up by 0.1% at Rs 46,742 per 10 grams.

Gold prices were flat today in Indian markets despite positive global cues. On MCX, gold futures were 0.06% higher at Rs 46,830 per 10 grams. In the previous session, gold had inched 0.2% lower.

Note that gold has been under pressure this year on fears that prospects of a faster economic recovery will ignite inflation and lead to rising lending rates, especially in the US, where Congress is moving forward on a US$ 1.9 billion stimulus plan. In August, gold had hit a record high of Rs 56,200 and has been under pressure since then.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Moving on to stock specific news...

Among the buzzing stocks today is Aurobindo Pharma.

Aurobindo Pharma on February 23, 2021, said that it has inked a pact to acquire a 26% stake each in two Hyderabad-based solar power generating companies.

The drug firm has entered into binding agreements to invest Rs 53.8 million each in NVNR (Ramannapet I) Power Plant and NVNR (Ramannapet II) Power Plant, aggregating to Rs 107.6 million, Aurobindo Pharma said in a regulatory filing.

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The company has invested in the two firms to avail the benefit of captive consumption of solar power, it added.

"After making the said investments, the company will be holding 26% of the share capital in each of the aforesaid solar power generating companies," Aurobindo Pharma noted.

The deal has been executed in cash and is expected to be completed by the end of March 2021. The announcement was made after market hours on February 23, 2021.

Aurobindo Pharma is a pharmaceutical manufacturing company headquartered in HITEC City, Hyderabad, India. The company manufactures generic pharmaceuticals and active pharmaceutical ingredients.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, Aurobindo Pharma share price was trading up by 0.2% on the BSE.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about how you can profitably trade stocks, commodities, and currencies on the same day, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Moving on to news from the power sector...

NTPC Inks Pact to Buy GAIL's Stake in Ratnagiri Gas and Power

State-owned National Power Thermal Corporation (NTPC) has signed a share purchase agreement to buy GAIL's 25.5% stake in Ratnagiri Gas and Power (RGPPL), which is commonly known as the Dabhol project.

After the transaction is complete, NTPC would have an 86.5% stake in RGPPL.

Earlier in January, the company had announced acquiring a 37.5% stake in RGPPL from its lenders. Initially, NTPC and GAIL had a 25.5% stake each in the Dabhol project.

"NTPC has executed a share purchase agreement with GAIL (India) on February 23, 2021, for the purchase of GAIL's share (25.5%) in Ratnagiri Gas and Power (RGPPL) and sale of NTPC's share (14.8%) (on a fully dilutive basis) in Konkan LNG (KLL)," the company said in a BSE filing.

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It added that after the transfer of shares as per the agreements, NTPC will exit from KLL, and NTPC's shareholding in RGPPL will stand at 86.5%.

RGPPL was incorporated on July 8, 2005, and is promoted by NTPC and GAIL (India). The company was set up to take over and revive the assets of the Dabhol Power Company Project.

RGPPL owns an integrated power generation and re-gasified LNG facility. The power station is one of India's large gas-based combined cycle power station.

How this share purchase pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

Speaking of the power sector, it is interesting to note that the power exchanged in India is about 4.5% of the overall power production, as can be seen in the chart below:

As per Tanushree Banerjee, Co-Head of Research at Equitymaster, India's power sector is currently in transition. It is driven by increasing reliance on short-term contracts and electricity spot markets.

This transition to the short-term market is happening due to quickly evolving industry dynamics.

Tanushree believes the Indian power sector will see a surge in spot power volumes due to certain factors.

In August 2020, Tanushree recommended a high-quality stock from this space. Subscribers can read the report here (requires subscription).

And if you are not a StockSelect subscriber, here's where you can sign up.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Opens Higher; Coal India and JSW Steel Top Gainers
09:30 am

Asian share markets opened lower today on concerns about rising interest rates and rich equity valuations and following selling in the US and European overnight trading.

Japan's Nikkei is currently trading lower by 0.8%, while Hong Kong's Hang Seng is trading lower by 2.3%.

Wall Street reversed course late Tuesday, with the S&P 500 and the Dow trading in the positive territory by the closing bell.

The Dow Jones Industrial Average reversed early losses to close with a gain 0.05%, while the tech-heavy Nasdaq Composite ended 0.5% lower.

Back home, Indian share markets have opened the day marginally higher.

The BSE Sensex is trading up by 133 points. Meanwhile, the NSE Nifty is trading higher by 41 points.

Coal India is among the top gainers today.

GAIL, on the other hand, is among the top losers today.

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The BSE Mid Cap index has opened up by 0.3%. The BSE Small Cap index is trading higher by 0.6%.

Sectoral indices are trading mixed with stocks in the metal sector and energy sector witnessing buying interest. IT stocks are trading in red.

Shares of Tata Steel and NALCO hit their 52-week highs today.

The rupee is trading at 72.38 against the US$.

Gold prices are trading up by 0.05% at Rs 46,824 per 10 grams.

Talking about Indian stock markets, Rahul Shah, co-head of Research at Equitymaster, in his latest video talks about how one should invest in the current times.

One of the biggest uncertainties in an uncertain world is a huge stock market crash.

Should one make an attempt to predict it or is there any other blueprint that an investor needs to follow?

Rahul discusses these points in the video below. Tune in to find out more:

Moving on to news from the IPO space...

As per a leading financial daily, Fintech startup MobiKwik has appointed investment banks ICICI Securities and IIFL, besides a few law firms, to kickstart work on its draft red herring prospectus.

The company may bring a few more investment banks on board to manage the domestic initial public offer (IPO).

As per the reports, the IPO will help the company raise fresh funds to continue its growth trajectory, but also provide an exit for its earlier investors. A large part of the IPO is expected to be a sale of shares by existing investors.

Several Indian startups in the fintech and consumer payments space, such as Paytm and PhonePe, are planning to go public.

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In other news, Indian auto components maker Sona Comstar is also set to file draft red herring prospectus this week to raise about Rs 60 billion through an IPO.

The Blackstone-backed company will be valued at about Rs 217.1 billion in this proposed IPO.

Meanwhile, the IPO of agrochemical manufacturer Heranba Industries was subscribed 84% on its first day of bidding yesterday.

The Rs 6.3-billion public issue received bids for 58,76,845 shares, which was 84% of the total issue size of 69,81,417 shares.

The offer size excludes anchor book of over 3 million equity shares. The company mopped up Rs 1.9 billion from anchor investors on February 22, a day before the opening for the issue.

The agrochemical company's IPO includes a fresh issue of Rs 600 million and the remaining is an offer for sale (OFS) by existing investors.

The price band for the issue has been fixed at Rs 626-627 per share.

Heranba Industries is a crop protection chemicals manufacturer, exporter and marketing company. It has over 9,400 dealers/distributors across 16 states and 1 Union Territory in India and exports to over 60 countries across the Middle East, South East Asia and Africa.

How the above IPOs sail through remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

In news from the automobile sector, Amazon India and Mahindra Electric have entered a partnership for the deployment of electric three-wheelers for last-mile delivery.

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Amazon has purchased at least a hundred Treo Zor cargo vehicles from Mahindra Electric and is set to acquire several more for its fleet of last-mile delivery vehicles.

The e-commerce giant had announced last year that by 2025 its delivery fleet would include 10,000 electric vehicles.

The company has deployed the Mahindra Treo Zor in seven cities so far, including Bengaluru, New Delhi, Hyderabad, Ahmedabad, Bhopal, Indore and Lucknow.

Launched in October 2020, the Treo Zor has a 56% market share in the electric three-wheeler market, as per data released by the Society of Indian Automobile Manufacturers (SIAM).

Speaking of electric vehicles, note that the power ministry has approved setting up 2,636 electric vehicle charging stations across 62 cities in 24 states.

Here's what co-head of Research at Equitymaster, Tanushree Banerjee wrote about electric vehicles in one of her editions of Profit Hunter:

  • 106 public and private entities have approached the government for permissions to set up about 7,000 EV charging stations.

    This clearly shows the vehicle manufacturers have enough incentive to capture this latent demand.

    The tax benefit in terms of a lower GST rate (at 5%) is a further shot in the arm of the EV industry.

As per Tanushree, electric vehicles are very much on their way to invading Indian roads. The threat of disruption in this era is something you cannot ignore.

Tanushree believes one of the companies manufacturing lithium ion batteries for powering electric cars will be a key catalyst for the Rebirth of India.

Stay tuned to get more updates from this space.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Up 74 Points, Hindalco Dividend and Capex Plan, Heranba IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets witnessed volatility throughout the day yesterday and ended on a flat note.

At the closing bell yesterday, the BSE Sensex stood higher by 7 points.

Meanwhile, the NSE Nifty ended up by 32 points.

ONGC was among the top gainers. Kotak Mahindra Bank, on the other hand, was among the top losers.

The BSE Mid Cap index ended up by 1%. The BSE Small Cap index ended higher by 0.7%.

Sectoral indices ended on a mixed note with stocks in the metal sector and oil & gas sector witnessing buying interest.

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Banking stocks and finance stocks, on the other hand, witnessed selling pressure.

From the defence sector, shares of Cochin Shipyard surged 11% intraday yesterday after the company received order from the Indian Navy. The stock ended close to its 52-week high of Rs 396.

The company has been declared as L1 or lowest bidder in the tender floated by the Indian Navy for construction of 6 numbers of Next Generation Missile Vessels (NGMV) and the estimated total order value is around Rs 100 billion, Cochin Shipyard said in a regulatory filing.

Speaking of the defence space, co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks in this sector. As per her, defence will be a big wealth-creating opportunity.

Back in June 2020, she recorded a video about India's best defence stocks.

You can watch the video here: The Upside in India's Best Bulletproof Defence Stocks.

At 8:00 am today, the SGX Nifty was trading up by 74 points, or 0.5% higher at 14,790 levels. Indian share markets are headed for a firm opening today following the trend on SGX Nifty.

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Gold prices for the latest contract on MCX were trading down by 0.3% at Rs 46,760 per 10 grams at the time of closing stock market hours yesterday.

Talking about Indian stock markets, Rahul Shah, co-head of Research at Equitymaster, in his latest video talks about how one should invest in the current times.

One of the biggest uncertainties in an uncertain world is a huge stock market crash.

Should one make an attempt to predict it or is there any other blueprint that an investor needs to follow?

Rahul discusses these points in the video below. Tune in to find out more:

Top Stocks in Focus Today

HDFC Bank will among the top buzzing stocks today.

The Securities Appellate Tribunal (SAT) has granted relief to HDFC Bank by staying on an order issued by markets regulator, which directed the lender to transfer over Rs 1.6 billion in the matter pertaining to BRH Wealth Kreators' share pledging.

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The tribunal directed HDFC Bank to give an undertaking to the markets regulator that it will abide by the result of the appeal and the directions given therein within four weeks from the date of the disposal of the appeal.

Last month, the regulator had imposed a penalty of Rs 10 million on HDFC Bank for invoking securities pledged by BRH Wealth, allegedly in violation of an interim order. Further, the bank was also directed to transfer Rs 1.6 billion, along with an interest of 7% per annum from October 14, 2019.

HDFC Bank had given a loan to BRH Wealth against shares. The broker had given a declaration that it was the absolute owner of the securities and they were not that of its clients.

Bharat Forge share price will also be in focus today. This comes as engineering and technology conglomerate Bharat Forge and global aerospace and technology company Paramount Group have announced a cooperation that will see them join technologies, capabilities and expertise to manufacture armoured vehicles in India.

An agreement to this effect was signed by both companies during the International Defence Expo (IDEX 2021) in Abu Dhabi.

Market participants will also track Reliance Industries (RIL) share price today. The Mukesh Ambani-controlled company which has proposed hiving off its oil to chemicals (O2C) business into an independent subsidiary, said it had received an approval from the markets regulator and stock exchanges to create this subsidiary.

The company now requires the approval of equity shareholders and creditors, regulatory authorities, and the income-tax authority, besides the National Company Law Tribunals (NCLTs) in Mumbai and Ahmedabad.

In a presentation to investors, RIL said that the creation of this subsidiary would facilitate value creation through strategic partnerships and attract dedicated pools of investor capital. The ongoing talks with Aramco for a stake sale in RIL were also mentioned in this presentation.

IPO Buzz: Heranba IPO Sees Good Retail Subscription on Day 1

In news from the IPO space...

The initial public offering (IPO) of agrochemical manufacturer Heranba Industries was subscribed 65% at the time of Indian stock market closing hours yesterday - its first day of bidding.

The Rs 6.3-billion public issue received bids for 3.5 million equity shares against offer size of 7 million shares, the subscription data available on the exchanges showed.

The portion reserved for retail investors was subscribed 1.28 times. The portion set aside for non-institutional investors was subscribed 4%, while qualified institutional buyers have not started bidding for the issue.

The offer size excludes anchor book of over 3 million equity shares. The company mopped up Rs 1.9 billion from anchor investors on February 22, a day before the opening for the issue.

The agrochemical company's IPO includes a fresh issue of Rs 600 million and the remaining is an offer for sale (OFS) by existing investors.

The price band for the issue has been fixed at Rs 626-627 per share.

Heranba Industries is a crop protection chemicals manufacturer, exporter and marketing company. It has over 9,400 dealers/distributors across 16 states and 1 Union Territory in India and exports to over 60 countries across the Middle East, South East Asia and Africa.

How this IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

Hindalco Alters Dividend Policy; Lays Out Plan to Cut Debt

Hindalco Industries has decided to pay 8-10% dividend from the consolidated free cash flow against its existing policy of paying 10-30% of the standalone net profit.

The above move will lead to higher payout as it will now consider the free cash flow of its US subsidiary Novelis while distributing dividend.

Moreover, the company said dividend will be declared out of the profits of that financial year or previous financial years after providing for past depreciation. This is in contrast to the existing policy which provides for paying dividend only from the existing year's standalone net profit and the retained earnings were to be utilised only in exceptional circumstances.

Before deciding on dividend, the board will consider various internal and external factors including stability of earnings, future capital expenditure, inorganic growth plans and reinvestment opportunities, or any such alternative profit distribution measure and any other contingency plans.

The Aditya Birla Group's metal flagship company also said it expects to generate US$ 1-1.2 billion cash flow per annum post its normal working capital and maintenance Capex and has come out with a capital allocation framework for growth Capex, debt reduction and for shareholders' returns.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.