Sensex Rallies 476 Points, Nifty Ends Above 17,500, NTPC & Bharti Airtel Surge 5%
Closing

Indian share markets witnessed positive trading activity throughout the day today and ended on a strong note.

Benchmark indices extended gains as the session progressed, hitting fresh record highs after the US inflation print suggested Federal Reserve may keep supporting the economy.

At the closing bell, the BSE Sensex stood higher by 476 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 139 points (up 0.8%).

NTPC and Bharti Airtel were among the top gainers today.

Tata Consumer Products and Nestle India, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,524, up by 139 points, at the time of writing.

The BSE MidCap index and the BSE SmallCap index ended up by 0.7% and 0.9%, respectively.

Sectoral indices ended on a positive note with stocks in the power sector, consumer durables sector and IT sector witnessing most of the buying interest.

Shares of Linde India and Bata India hit their respective 52-week highs today.

{inlineads1}

Asian stock markets ended on a negative note today amid concerns about a slower recovery from the pandemic and risks for the global economy from elevated inflation.

The Hang Seng and the Shanghai Composite ended the day down by 1.8% and 0.2%, respectively. The Nikkei ended down by 0.5% in today's session.

US stock futures are trading on a positive note today with the Dow Futures trading up by 79 points.

The rupee is trading at 73.49 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.4% at Rs 47,088 per 10 grams.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani shares how to profit from market cycles, in one of his videos for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the cement sector, Shree Cement was among the top buzzing stocks today.

Shares of Shree Cement were in focus today after its board approved a slew of expansion plans.

The company will increase its clinker capacity by 3.8 million tonne (MT) and cement grinding capacity by 6.5 MT. Reacting to this, the stock rose around 2% on the NSE in today's opening trade.

The board also approved a proposal to set up 106 megawatt solar capacity at a total capex of Rs 48 bn. This is likely to be commissioned by March 2024.

Market experts say this expansion will help the company enhance the proportion of clean energy usage in total energy consumption, reduce fossil fuel use and help reduce its carbon footprint.

{inlineads2}

Post this expansion, its domestic grinding capacity would rise from 43.4 MT to 53 MT. Investors would reckon that the company aims to achieve 80 MT capacity by the fiscal 2030 and this expansion is a step towards that.

Furthermore, the company has proposed to set up an integrated cement plant in Rajasthan with clinker and cement capacity of 3.8 MT and 3.5 MT, respectively. This would be done at a capital expenditure of Rs 35 bn and would be funded through a mix of internal accruals and debt. This plant is expected to be commissioned by March 2024.

Shree Cement is one of India's premier cement makers. The company's manufacturing operations are spread over north and east India across six states.

Shree Cement share price ended the day up by 0.3% on the BSE.

Moving on to news from the defence sector...

HAL and Rolls-Royce Sign Pact for Make-in-India Adour Engine Parts

Hindustan Aeronautics (HAL) and Rolls-Royce on Tuesday signed an agreement for Make-in-India Adour engine parts to support the latter's international defence customer base.

Through this partnership, Rolls-Royce aims to strengthen the ecosystem for Adour engines in India by building on HAL's existing capabilities for manufacturing and supporting the Adour engines for Indian customers over several decades, Bengaluru-headquartered HAL said in a statement.

This follows the memorandum of understanding (MoU) signed by Rolls-Royce and HAL during the Aero India 2021 to establish an authorised maintenance centre for Adour at HAL to support international military customers and operators.

{inlineads3}

HAL's Managing Director, R Madhavan said that with over 30 years' experience of supporting repair and maintenance services for the Adour engines in India, HAL has the capability and capacity to support a large defence customer base.

President, Rolls-Royce India and South Asia, Kishore Jayaraman said his company's valued partnership with HAL has grown from strength to strength over the last few decades and this is a significant step towards strengthening the defence manufacturing ecosystem in India.

Hindustan Aeronautics share price ended the day down by 0.5% on the BSE.

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.

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


Sensex Hits Record-High, Dow Futures Up by 49 Points
12:30 pm

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

The BSE Sensex is trading up by 354 points, up 0.6%, at 58,600 levels.

Meanwhile, the NSE Nifty is trading up by 100 points.

NTPC and ONGC are among the top gainers today. BPCL and HDFC Bank are among the top losers today.

The BSE Mid Cap index is trading up by 0.6%

The BSE Small Cap index is trading up by 0.8%.

On the sectoral front, all sectors are trading in green with stocks from the telecom sector witnessing most of the buying interest.

US stock futures are trading higher today, indicating a positive opening for Wall Street.

Nasdaq Futures are trading up by 32 points (up 0.2%) while Dow Futures are trading up by 49 points (up 0.1%)

The rupee is trading at 73.64 against the US$.

Gold prices are trading down by 0.2% at Rs 47,150 per 10 grams.

{inlineads1}

Gold prices were muted in Indian markets today despite positive global cues. On MCX, gold futures were trading 0.06% lower at Rs 47,231 for 10 grams.

In global markets, gold prices gained after the US government reported lower than expected inflation data and the dollar eased against other currencies.

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 ONGC.

Shares of Oil and Natural Gas Corporation (ONGC) rose over 4% on the exchanges after the company said it is looking to buy out Infrastructure Leasing & Financial Services' (IL&FS') stake in Mangalore Special Economic Zone (MSEZ).

IL&FS holds 50% equity in the company.

The deal is likely to be concluded at fair value after ONGC's attempt to buy out the shadow lender's stake in the joint venture (JV) at deep discount failed.

ONGC currently holds 26% equity in the company, while Karnataka Industrial Area Development Corporation holds 23%.

ONGC Mangalore Petrochemicals (OMPL) and Kanara Chamber of Commerce & Industry together hold 1% equity in MSEZ.

In March 2019, ONGC had invoked an 'event of default' clause and sought to buy IL&FS' stake at a deep discount. IL&FS contested the claim on grounds that MSEZ was its green bucket company which had no payment default or overdue.

{inlineads2}

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

At the time of writing, ONGC shares were trading up by 4.2% on the BSE.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani shares how to profit from market cycles, in one of his videos for Fast Profits Daily.

Moving on to news from the software sector...

HCL Technologies Expands Partnership With Finastra

HCL Technologies and Finastra, the largest pure-play software vendor that serves the entire financial services industry, have expanded their partnership to drive digital transformation across South Korea and Taiwan.

As part of the engagement, HCL will use its next-generation digital transformation and service capabilities to bring two of Finastra's strategic products, Fusion Cash Management and Fusion Summit, to the financial services ecosystem in the region. 

Fusion Cash Management powers the digital corporate banking experience for financial institutions around the world while Fusion Summit offers a functionally rich core trading solution for capital markets.

{inlineads3}

Sanjay Gupta, Corporate Vice President, HCL Technologies said,

  • Finastra's strategic solutions coupled with HCL's deep industry experience, will help institutions adapt and succeed in the changing ecosystem. This partnership will help HCL further accelerate its strategic presence in South Korea and Taiwan while strengthening its long-standing relationship with Finastra.

HCL Technologies is a leading global technology company. It offers its services and products through three business units - IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P).

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

Speaking of stocks, here's a pattern that if you see, you must sell your position. After all, exits are more important than entries.

In the chart below, we can see the head and shoulder pattern - the stock goes up, makes a high, falls a little bit, goes up to a higher high, does not make a higher low, rallies again, fails to make a new high, and then starts to break down.

This usually happens in a situation where a stock or index has typically been in a bull trend for a while. Spotting this correctly can help you save money.

If you're interested in trading and want to know how you can use this pattern, you can read about it in one of the editions of Profit Hunter here: It's When You Sell that Counts

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


Sensex Opens Flat Tracking Mixed Global Cues; Titan & ONGC Gain 3%
09:30 am

Asian share markets opened lower today as investors sought to lock in profits after recent rallies. The overnight fall on Wall Street also dampened sentiment.

The Hang Seng is down 1%, while the Shanghai Composite is trading up by 0.3%. Japan's Nikkei is down 0.6%.

In US stock markets, Wall Street fell on Tuesday as economic uncertainties and the increasing likelihood of a corporate tax rate hike dampened investor sentiment and prompted a broad sell-off despite signs of easing inflation.

The Dow Jones Industrial Average fell 0.8% while the Nasdaq lost 0.5%.

Back home, Indian share markets have opened on a flat note, following the trend on SGX Nifty.

The BSE Sensex is trading up by 132 points. Meanwhile, the NSE Nifty is trading higher by 34 points.

Titan and Bharti Airtel are among the top gainers today. Axis Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.6%. The BSE Small Cap index is trading higher by 0.5%.

Barring banking, all sectoral indices are trading in green with stocks in the telecom sector and consumer durables sector witnessing most of the buying.

{inlineads1}

Shares of Ipca Labs and Zee Entertainment hit their 52-week highs today.

The rupee is trading at 73.69 against the US$.

Gold prices are trading down by 0.1% at Rs 47,246 per 10 grams.

Meanwhile, silver prices are trading down by 0.2% at Rs 63,440 per kg.

Crude oil prices climbed today after industry data showed a larger than expected drawdown in crude oil stocks in the US, and on expectations that demand will recover as vaccine roll-outs widen.

Speaking of stock markets, Brijesh Bhatia shares his proven proprietary trading system to make regular monthly income, in his latest video for Fast Profits Daily.

With this system, you could potentially generate tens of thousands of rupees month after month.

Want to know more? Tune in to the video below to find out:

In latest developments from the IPO space, the initial public offer (IPO) of auto component maker Sansera Engineering was subscribed 53% on the first day of subscription on Tuesday.

The issue received bids for 6.4 m shares against 12.1 m shares on offer.

The category for qualified institutional buyers (QIBs) was subscribed 29%, while non-institutional investors 7% and retail investors 87%.

The total issue is of 17.24 m equity shares as the company has already mopped up Rs 3.8 bn from anchor investors.

The price band for the offer is Rs 734-744 per share.

{inlineads2}

At the upper end of the price band, the initial share sale is expected to garner Rs 12.8 bn.

This is Sansera Engineering's second attempt to go public. Earlier, the company had filed IPO papers in August 2018 and also received clearance to float the public issue. However, it did not go ahead with the launch.

To know more, check out our article on Sansera Engineering IPO.

In other news, the IPO of Paras Defence and Space Technologies will open for subscription on 21 September.

The IPO comprises a fresh issue of equity shares worth Rs 1.4 bn and an offer for sale (OFS) of up to 1.72 m shares by promoters and existing shareholders.

The Mumbai-based firm, which focuses on defence and space optics, defence electronics, electromagnetic pulse protection solution, and heavy engineering, intends to utilize the net proceeds of the IPO to purchase machinery and equipment, fund incremental working capital requirements, repay debt and for general corporate purposes.

The company caters to defence PSUs such as Bharat Electronics, Bharat Dynamics and Hindustan Aeronautics.

It operates manufacturing units in Navi Mumbai and Thane. It also has clients in Belgium, Israel and South Korea.

How this IPO sails through remains to be seen.

Moving on to stock specific news, Vodafone Idea is among the top buzzing stocks today.

As per a leading financial daily, the government is open to picking up a stake in Vodafone Idea by converting a part of the dues the company owes as part of the Centre's efforts to retain investors' confidence.

Here's an excerpt from the article:

    The government may also keep the option of converting more of those dues into equity after four years, subject to conditions.

    A decision could be taken by the Cabinet on Wednesday, but there's no certainty.

As of June 2021, the loss-making telco has total gross debt of Rs 1.92 lakh crore, comprising deferred spectrum payment obligations of Rs 1.06 lakh crore and AGR liability of Rs 621.8 bn that are due to the government and Rs 234 bn to banks and financial institutions.

{inlineads3}

The quantum of the token stake and whether it would be in the form of equity shares or any other instrument is yet to be decided.

A person aware of the matter said there will be no infusion of funds from the government, only some of the dues which the company owes could be converted into the government's stake.

Note that despite trying for nearly a year, Vodafone Idea has failed to conclude its planned Rs 250-bn fundraising plan.

In June, Aditya Birla group chairman Kumar Mangalam Birla had written to the government that the telco won't survive unless the government provided some relief, and had even offered to give up the group's stake of 27.66% to a state-owned entity.

He resigned as the chairman of the telco in early August and was replaced by Himanshu Kapania.

Markets are expecting that the government will provide some relief in today's meeting. Owing to this, shares of the company had gained 9% yesterday.

Today, Vodafone Idea share price has opened up by 0.8%.

Speaking of Vodafone Idea, note that the company is among the biggest wealth destroyers in the past five years.

To know more, check out Vodafone Idea's latest shareholding pattern.

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


SGX Nifty Up 44 Points, Godawari Power's Bonus and Stock Split, LIC IPO Updates, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a flat note yesterday.

Led by gains in select IT and private bank stocks, benchmark indices settled in the green, rising for the second time in the last three sessions.

Market participant took cues from India's wholesale price inflation data, which accelerated to 11.39% in August after easing for two consecutive months as producers regain pricing power with economy showing signs of recovery.

At the closing bell yesterday, the BSE Sensex stood higher by 69 points (up 0.1%).

Meanwhile, the NSE Nifty closed higher by 25 points (up 0.1%).

IndusInd Bank and HCL Technologies were among the top gainers.

UltraTech Cement and HDFC, on the other hand, were among the top losers.

The BSE MidCap index and the BSE SmallCap index ended up by 1.1% and 0.6%, respectively.

Sectoral indices ended on a positive note with stocks in the auto sector and consumer durables sector witnessing most of the buying interest.

Metal stocks, on the other hand, witnessed selling pressure.

{inlineads1}

Shares of Adani Transmission and Deepak Nitrite hit their respective 52-week highs.

At 8:05 am today, the SGX Nifty was trading up by 44 points, or 0.3% higher at 17,431 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.2% at Rs 46,820 per 10 grams at the time of closing stock market hours yesterday.

Speaking of stock markets, India's #1 trader Vijay Bhambwani talks about how to profit from market cycles, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Goldiam International.

Shares of Goldiam International soared 17% to a new high on the BSE yesterday after the company's board approved a proposal to buyback shares at a price of Rs 1,200 per share.

The company is an integrated manufacturer and supplier of diamond jewellery to leading retailers and wholesalers in the USA and Europe.

In an exchange filing, the company said,

  • The board of directors of Goldiam International at its meeting held on 13 September 2021 has approved a proposal to buyback up to 380,000 equity shares of the company for an aggregate amount not exceeding Rs 456 m, at a price of Rs 1,200 per equity share.

The company further said that the buyback is proposed to be made from the existing shareholders of the company as on the record date on a proportionate basis under the tender offer route.

On the rationale behind share buyback, Goldiam International said that the company believes the strong future and outlook of its business activities is not accurately reflected in the prevailing market price, thereby giving an opportunity for buyback to create long-term value for its shareholders.

{inlineads2}

The buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the company; and thereby, enhancing the overall return to shareholders, it added.

Over the last five years, Goldiam has carried out two buybacks of shares to the tune of Rs 300 m. It has also utilized Rs 841.7 m on dividends and buybacks.

Godawari Power share price will also be in focus today.

Shares of Godawari Power & Ispat surged 5% to Rs 1,270 per share on the BSE yesterday after the company announced that its board of directors in a meeting held on 14 September 2021 have approved the proposal of sub-division of shares (stock split) in the ratio of 1:2.

The stock split plan will help to improve the liquidity of the company's share on the stock market and also to facilitate small investors to deal in its shares.

The board approved the proposal for sub-division of equity share of face value of Rs 10 each of the company into 2 equity shares of Rs 5 each.

Godawari Power's board has also decided to issue bonus shares in the ratio of 1:1 by capitalizing the free reserves after the proposal for split of the shares is approved by the shareholders of the company.

In order to accommodate the proposed issue of bonus shares, the company has decided to increase the authorised equity share capital from existing Rs 498 m to Rs 708 m by creation of additional 21 m equity shares of Rs 10 each (42 m equity shares of Rs 5 each post sub-division) subject to approval of the shareholders of the company.

Zomato co-founder Gaurav Gupta Quits

In a huge development, Gaurav Gupta, one of the top executives of food tech platform Zomato has decided to leave the company.

Gupta, who joined Zomato in 2015 was elevated as Chief Operating Officer in 2018 and as the founder in 2019. He was the face of the company in the run up to the initial public offering (IPO), leading discussions with investors and the media.

His exit comes days after Zomato exited its grocery delivery and nutraceutical business.

{inlineads3}

According to sources familiar with the development, this exit was a long time coming as Zomato founder Deepinder Goyal and Gaurav Gupta had a fallout some time ago.

The businesses launched by Gupta, including grocery, nutraceuticals among others, were struggling or had to be shut down. Moreover, the overseas expansion led by him also didn't work out.

Last year due to Covid-19, Zomato said there has been a gradual rise in the adoption of healthy food among the average Indian.

Citing a huge opportunity in the segment, Zomato had made a plunge in the segment and named Gupta as the head of this division for five years.

'This business can potentially be a large value driver for Zomato in the future,' Gupta had said last year.

LIC IPO: Govt Amends Fee Structure for Legal Advisors After Failed Attempt

After the first attempt to appoint legal advisor for the initial public offering (IPO) of Life Insurance Corporation (LIC) failed, the government has amended the fee structure for law firms to make the offer attractive.

The Department of Investment and Public Asset Management (DIPAM) has introduced "milestone payments" by amending its request for proposal (RFP) for engagement of legal advisors for the LIC IPO.

Earlier, the legal advisors were supposed to get their fee after successful and satisfactory completion of the transaction. Now, the successful law firm will receive 50% of the fee after filing of the DRHP and the remaining half post listing.

This comes after the government did not receive adequate response from law firms for assisting in the LIC IPO.

Law firms will have to submit their bids by 16 September. The selected law firm will have to prepare the DRHP, RHP and the final prospectus for filing with the markets regulator and the stock exchanges.

There's more. The government is also mulling to align the rules of surplus distribution of LIC with those of its private counterparts.

LIC is governed by a special law, which currently allows to transfer only 5% of its surplus to the funds of shareholders. Rest of the 95% flows into the policyholder's fund in order to pay bonus on eligible life insurance policies.

The said ratio is 90:10 when it comes to other life insurance companies which are regulated by the Insurance Act.

The government aims to bring parity to make the investment into LIC an attractive offer, ahead of the planned IPO.

We will keep you updated on the latest developments from this space. Stay tuned.

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