Sensex Ends Above 59,000, Nifty Tops 17,600; IndusInd Bank & ITC Rally 7%
Closing

Indian share markets witnessed positive trading activity throughout the day today and ended higher

For the third consecutive day, benchmark indices scaled new highs as a result of firm global cues and recently implemented reforms in the telecom and auto sector.

A rise in PSU bank stocks ahead of Finance Minister Nirmala Sitharaman's speech also added to gains.

At the closing bell, the BSE Sensex stood higher by 418 points (up 0.7%).

Meanwhile, the NSE Nifty closed higher by 110 points (up 0.6%).

IndusInd Bank and ITC were among the top gainers today.

Grasim Industries and Bharti Airtel, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,608, up by 72 points, at the time of writing.

The BSE Mid Cap index ended up by 0.4%, while the BSE Small Cap index ended on a flat note.

{inlineads1}

Sectoral indices ended on a mixed note with stocks in the banking sector, energy sector and FMCG sector witnessing most of the buying interest.

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

Shares of Coforge and Avenue Supermarts hit their respective 52-week highs today.

Asian stock markets ended on a negative note today.

The Hang Seng and the Shanghai Composite ended the day down by 1.5% and 1.3%, respectively. The Nikkei ended down by 0.6% in today's session.

US stock futures are trading on a flat note today with the Dow Futures trading down by 38 points.

The rupee is trading at 73.52 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.8% at Rs 46,529 per 10 grams.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani talks about a critical aspect of trading, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Moving on to stock-specific news, Tata group stocks were among the top buzzing stocks today.

Tata Group and a grouping led by SpiceJet chairman Ajay Singh placed financial offers for Air India on Wednesday, the last day to submit bids.

Tata Sons made the offer through its 100% arm Talace Private Limited while Singh placed the financial bids in his personal capacity along with some investment funds.

In a tweet, the department of investment and public asset management, without revealing names of the parties said,

  • Financial bids for Air India were received by the transaction adviser. Process now moves to concluding stage.

Ernst & Young (EY) is the transaction adviser to the government on Air India's disinvestment. The centre will soon set a floor price for the airline.

{inlineads2}

The government hopes to wrap up the sale of Air India this year, marking a major milestone in the country's privatisation programme. It has taken nearly 20 years for the cash guzzling airline to be sold.

But the winner will also have to meet security audit standards. Air India has a debt of over Rs 430 bn, of which Rs 232.9 bn will be retained on its books while the rest will be transferred to Air India Asset Holdings, an entity incorporated to house non-aviation assets.

On Tuesday, Tata Sons shareholders had approved a fund-raise programme of Rs 400 bn via non-convertible debentures to finance acquisitions and invest in businesses.

Tata Sons - which operates Vistara and AirAsia India - is considered the frontrunner for Air India, according to reports. The company originally promoted Air India in 1932 but sold its interests to the government in 1953. Its financial bid signals its commitment to the air transport business.

How this pans out remains to be seen.

Moving on to news from the engineering sector...

BHEL Commissions India's Largest Floating Solar Plant

State-owned Bharat Heavy Electricals (BHEL) today announced the commissioning of India's largest floating solar photovoltaic plant in Andhra Pradesh.

Located at NTPC Simhadri in Andhra Pradesh, the 25-megawatt floating SPV project covers an area of 100 acres, BHEL said without disclosing the project cost.

BHEL said its scope of work in the project included design, engineering, procurement and construction (EPC) of the solar project, which has been executed by the company's recently formed solar business division.

The project will help saving valuable land resources and conserving water by reducing evaporation.

{inlineads3}

It further said this complex module array has been designed for the first time in India to withstand gusts of wind up to 180 km/hr.

Given the coastal location of the project site that leads to severe corrosion, all the platform structures and other equipment have been made corrosion resistant, it added.

The engineering firm is the leading EPC player in the solar industry in India, with an overall portfolio of more than 1.2 gigawatts.

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

Speaking of the capital goods sector, here's an interesting data point...

Had you instead invested in the BSE Capital Goods index in 2002, you would have made a return of over 3,000% - a whopping 83% CAGR (compound annual growth rate) - over the next six years.

Here's what Aditya Vora, Financial Writer at Equitymaster, wrote about the capital goods sector in one of the editions of Profit Hunter:

  • I'm a firm proponent of the economic revival theme in the stock market. I'm bullish on capital goods and infrastructure stocks.

    These sectors have emerged stronger from an elongated down cycle. There is also a strong momentum in economic indicators which is in favour of these stocks.

    Indicators like rising construction equipment sales, record highway construction run rate, capacity expansion by private players in the cement, metals, and consumer durables gives us confidence of a strong capex cycle ahead.

    There may be a near term speed bump to the economic recovery due to the rising covid cases and lockdowns. However, I believe we are at an inflection point with regards to the capex cycle.

    The cycle has turned up.

One of the Hidden Treasure recommendation is a fundamentally strong business in the capital goods space that is 'essential' to the infrastructure revival.

Subscribers can read the report here. (requires subscription)

If you're not a 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 Trades Marginally Higher, Dow Futures Trade Flat
12:30 pm

Share markets in India are presently trading marginally higher.

The BSE Sensex is trading up by 263 points, up 0.4%, at 58,986 levels.

Meanwhile, the NSE Nifty is trading up by 74 points.

IndusInd Bank and ITC are among the top gainers today. Coal India and Shree Cement are among the top losers today.

The BSE Mid Cap index is trading up by 0.5%

The BSE Small Cap index is trading up by 0.1%.

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

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

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

Nasdaq Futures are trading down by 16 points (down 0.1%) while Dow Futures are trading flat.

The rupee is trading at 73.44 against the US$.

Gold prices are trading down by 0.6% at Rs 46,616 per 10 grams.

{inlineads1}

Gold prices were weak in Indian markets today after a sharp fall in the previous session. On MCX, gold futures were down 0.04% to near a one-month low of Rs 46,878. In the previous session, gold had slumped 0.8% or about Rs 400.

In global markets, gold rates were down below the key US$ 1,800 level as investors remained cautious ahead of next week's US Federal Reserve meeting. Spot gold fell 0.6% to US$ 1,793.2 per ounce despite a subdued US dollar.

The Fed's two-day policy meeting is due on September 21-22. Analysts expect the US central bank to provide guidance on when it will start withdrawing its asset purchases and on eventual interest rate hike.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

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

{inlineads2}

Moving on to stock-specific news...

Among the buzzing stocks today is Tata Motors.

Tata Motors has inked a pact with Tata Power to install and operate a 3 MWp rooftop solar project at its passenger vehicle business unit (PVBU) plant in Pune.

The solar rooftop project is expected to generate nearly 45 lakh KWh (kilowatt hour) per year, reducing carbon emissions by around 3,538 tonnes per year.

Energy efficiency is at the core of the company's efforts and reducing GHG emissions and the carbon footprint of products play a vital role.In a press release, the Tata Motors said,

  • We will continue to conserve energy in our manufacturing facilities, optimising the consumption of non-renewable fossil fuels, energy productivity, climate change mitigation and lower operating costs.

Meanwhile, Tata Power Chief, Ravinder Singh said that the partnership represents a collective effort to help Tata Motors lower its carbon footprint and achieve its net zero carbon goal.

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

At the time of writing, Tata Motors shares were trading down by 0.3% on the BSE.

{inlineads3}

Speaking of the stock market, India's #1 trader, Vijay Bhambwani talks about a critical aspect of trading, in his latest video for Fast Profits Daily.

Moving on to news from the software sector...

Infosys Announces Strategic Collaboration With SAP

Infosys has announced a strategic collaboration with SAP, a market leader in enterprise application software, to provide Business Process Transformation-as-a-Service to enterprises.

Through this collaboration, Infosys will leverage business process intelligence (BPI) from SAP to identify opportunities and obstacles in the transformation journey and create a roadmap for its clients.

In a press release, Dinesh Rao, Executive Vice President of Infosys said,

  • As we navigate through cloud, BPI becomes an essential component of the transformation journey for enterprises. Given our strong relationship with SAP, we will continue to deliver value and innovative solutions to our clients.

Rouven Morato, General Manager, Business Process Intelligence, SAP, said the value of BPI extends beyond IT and impacts how businesses operate.

SAP is a German multinational software corporation, that develops enterprise software to manage business operations and customer relations. The company is especially known for its ERP software.

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

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


Sensex Opens Marginally Higher; IndusInd Bank & ITC Top Gainers
09:30 am

Asian share markets have erased early gains and are presently trading on a negative note.

The Hang Seng is down 1.8% while the Nikkei is trading lower by 0.8%. The Shanghai Composite fell 0.7%.

In US stock markets, Wall Street indices closed higher on Wednesday as rising crude prices boosted energy shares and positive US data suggested inflation has topped out and the economic recovery remains robust.

The Dow Jones Industrial Average settled 0.7% higher while the Nasdaq rallied 0.8%.

Back home, Indian share markets have opened on a positive note.

The BSE Sensex is trading up by 128 points. Meanwhile, the NSE Nifty is trading higher by 44 points.

IndusInd Bank and ITC are among the top gainers today.

{inlineads1}

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

Both, the BSE Mid Cap index and the BSE Small Cap index have opened higher by 0.5%.

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

Power stocks, on the other hand, are trading in red.

Shares of Quess Corp and Nocil hit their 52-week highs today.

The rupee is trading at 73.53 against the US$.

Gold prices are trading down by 0.1% at Rs 46,876 per 10 grams.

Meanwhile, silver prices are trading up by 0.2% at Rs 63,445 per kg.

Crude oil prices slipped today but kept most of previous day's gains following a larger-than-expected drawdown in crude oil stocks in US.

Speaking of stock markets, Brijesh Bhatia talks about how you can create a second income from trading using a proven system, in his latest video for Fast Profits Daily.

Tune in to the below video to find out more:

Moving on to stock specific news...

Hindustan Copper is among the top buzzing stocks today.

The government on Wednesday announced that it will sell up to 10% stake in Hindustan Copper via offer for sale (OFS), at a floor price of Rs 116.

The floor price has been set at a 7% discount to yesterday's closing price of Rs 124.50.

{inlineads2}

The offer will take place today and tomorrow in a separate window of stock exchanges. It will open today for non-retail investors and retail investors can bid tomorrow, Friday.

In case of under subscription, the unsubscribed portion shall be available to other bidders in non-retail category.

The government is selling 48.3 m shares representing 5% of the total paid up share capital of the company.

The OFS also includes a 5% green-shoe option.

This option entails an option to additionally sell 48.3 m equity shares, collectively representing 10% of the total issued.

If the entire 10% sale goes through, it could fetch the government around Rs 11.2 bn at the set floor price and would bring down its shareholding to 62.76%.

Note that this is the third time the government is offloading its stake in a public sector undertaking (PSU) through an OFS in the current financial year.

The first one was NMDC and the second being HUDCO.

So far, the government has mopped up Rs 83.7 bn through OFS of NMDC, HUDCO and selling stake in Axis Bank in the current fiscal.

Hindustan Copper share price has opened the day down by 4.8%.

Note that copper prices have been on downtrend as the metal's August imports by top consumer China fell to their lowest since June 2019. This was because high prices and sluggish economic growth hit demand.

{inlineads3}

London copper prices have roughly traded within US$9,000-US$10,000 a tonne since hitting a record high of US$10,747.50 per tonne in May 2020.

Because of this, shares of Hindustan Copper have been on a downtrend for the past few months.

Moving on to news from the media sector, institutional investors who own a majority stake in Zee Entertainment Enterprises (ZEE) are seeking more clarity from Invesco fund on its proposal to revamp the board of the company and will support it if the plan is well defined.

Large investors prefer continuity at the top to avoid any disruption in the operations of the company.

A senior official of a mutual fund house said,

  • Though it's too early, we would also be going with the Invesco Fund on this issue. Having said that, we would also look at who would be at the helm of the company if the existing CEO (chief executive officer) is removed from the job.

    There is a concern on the leadership role as this is a media company and not any manufacturing company.

Institutional investors hold around 78% stake in ZEE.

On Tuesday, the news came out that Invesco Developing Markets Fund and OFI Global China Fund LLC, which own 18% in the company, have sought removal of the current MD and CEO Punit Goenka and appointment of six directors on the board as its nominees.

Following this news, ZEE shares settled 40% higher on Tuesday.

Institutional investors say with promoters holding just 3.99%, it was only a matter of time before the board was revamped.

Markets are eagerly waiting for the extraordinary general meeting (EGM) called by Invesco. According to the current rules, the board needs to call the EGM within 21 days following receipt of the requisition to decide on these proposals. Or else, Invesco can call an EGM within the next 45 days.

Zee Entertainment share price has opened the day up by 0.6%.

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


SGX Nifty Trades Flat, Relief Measures for Telecom Sector, Sansera Engineering IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a strong note yesterday.

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 yesterday, 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.

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

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.

{inlineads1}

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

At 8:10 am today, the SGX Nifty was trading down by 14 points, or 0.1% lower at 17,520 levels. Indian share markets are headed for a flat opening today following the trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.4% at Rs 47,088 per 10 grams at the time of closing stock market hours yesterday.

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:

Top Stocks in Focus Today

Among the buzzing stocks today will be Shree Cement.

Shree Cement will increase its clinker capacity by 3.8 million tonne (MT) and cement grinding capacity by 6.5 MT.

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.

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.

{inlineads2}

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.

ONGC share price will also be in focus today.

Shares of Oil and Natural Gas Corporation (ONGC) rose over 5% yesterday 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.

Cabinet Approves 4-Year Moratorium for Telecom Companies

In a much-awaited relief, the Union Cabinet on Wednesday approved a relief package for the country's cash-strapped telecom sector, along with several structural reforms to strengthen the sector.

{inlineads3}

All those who will avail of the moratorium will have to pay some interest. The moratorium will start from 1 October 2021.

Minister Ashwini Vaishnaw said,

  • The reforms are deep and broad. They are structural. These reforms will bring in change today, tomorrow and in the future. I do not like to put a number on the package as it is revenue-neutral for the government.

    The moratorium will not impact the government's revenue.

The package comes six weeks after Kumar Mangalam Birla resigned from the chairman post of Vodafone Idea on 4 August 2021.

Vodafone, which was created from the merger of British telecom giant Vodafone's India unit and Birla's Idea Cellula, has to pay about Rs 504 bn in statutory dues dating back over past many years.

The relief package includes a moratorium on payments for airwaves and is aimed at helping Bharti Airtel, Reliance Jio and Vodafone Idea.

The relief package for the ailing sector, which has the option for the telecom firms to convert interest on spectrum dues of the four-year moratorium period into government equity, was long due.

Last year, the supreme court passed a ruling asking Bharti Airtel and Vodafone Idea to clear the government dues which hit the sector hard. Banks led by the State Bank of India have called on the government to give Vodafone Idea more time to clear its tax dues.

Apart from the moratorium, the Cabinet cleared some major decisions regarding spectrum allocation and FDI. Spectrum sharing has been made free while the auction will take place in the last quarter of the financial year.

Sansera Engineering IPO sees strong demand

The initial public offering (IPO) of Sansera Engineering, a precision components manufacturer across automotive and non-automotive sectors, was subscribed 92% on 15 September, the second day of bidding.

Investors have put in bids for 11.1 m shares against the IPO size of 12.1 m shares. The portion set aside for retail investors was subscribed 1.56 times and that for employees 87%, data shows.

Qualified institutional buyers had put in bids for 38% of their portion and non-institutional investors 13%.

The company aims to raise Rs 12.8 bn through the issue which is a complete offer for sale by investors and promoters. The price band for the offer, which closes today, has been fixed at Rs 734-744 a share.

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

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