Sensex Slumps 700 Points from Day's High to End Lower; Tata Steel & SBI Among Top Losers
Closing

Indian share markets witnessed volatile trading activity throughout the day today and ended lower.

Benchmark indices tumbled from record high levels to snap their three-day winning run amid losses in energy, auto, and pharma stocks, despite firm global cues.

At the closing bell, the BSE Sensex stood lower by 125 points (down 0.2%).

Meanwhile, the NSE Nifty closed lower by 44 points (down 0.3%).

Kotak Mahindra Bank and HDFC Bank were among the top gainers today.

Tata Steel and Coal India, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,592, down by 19 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended down by 1.1% and 1%, respectively.

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Sectoral indices ended on a negative note with stocks in the metal sector, realty sector and energy sector witnessing most of the selling pressure.

Banking and telecom stocks, on the other hand, witnessed buying interest.

Shares of Tata Elxsi and Polycab India hit their respective 52-week highs today.

Asian stock markets ended on a positive note today.

The Hang Seng and the Shanghai Composite ended the day up by 1% and 0.2%, respectively. The Nikkei ended up by 0.6% in today's session.

US stock futures are trading on a negative note today with the Dow Futures trading down by 56 points.

The rupee is trading at 73.48 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 46,208 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:

In news from the finance sector, IDFC was among the top buzzing stocks today.

IDFC said that its board and the board of IDFC Financial Holding Company (IDFC FHCL) have approved to initiate steps to divest its mutual fund business.

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IDFC AMC's average assets under management (AAUM) for the June quarter was at Rs 1.3 tn, as per AMFI data.

In a statement, the company said,

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

The company is losing investor confidence over delay in value unlocking

At a pre-annual general meeting conference call held on 14 September 2021, investors expressed disappointment with the slow pace of progress of the disinvestment.

The announcement was made during market hours today, 17 September 2021.

IDFC share price ended the day down by 1.7% on the BSE.

Moving on to news from the automobile sector...

TVS Motors Acquires Majority Stake in Swiss Company EGO Movement

TVS Motor, a global manufacturer of two-wheeler and three-wheeler vehicles, announced a partnership with European e-bike, EGO Movement as a majority shareholder, in an all-cash deal through its Singapore subsidiary TVS Motor (Singapore).

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TVS picked up 80% stake in EGO for US$17.9 m, according to a report in The Economic Times.

Joint Managing Director Sudarshan Venu affirmed that the deal is progress towards delivering unique e-mobility solutions

He further added,

  • We are building a strategic personal e-mobility ecosystem by scaling unique brands which share our vision of delivering compelling customer experience benchmarks through cutting-edge, aspirational products.

    EGO Movement has a strong presence in Europe with customer-centric products, a unique omnichannel network and a visionary team at its helm. Together, we will address global urbanisation by delivering unique e-mobility solutions with e-bicycles and mobility across a diversity of forms.

Led by the co-founders Daniel Meyer and Marie So, EGO Movement is a Swiss technology company providing a wide range of mobility solutions through a portfolio of e-bikes, e-cargo bikes, and e-scooters. It is a profitable company with sales of about 3500 units in 2020 generating revenues of US$6 m.

This acquisition will further expand the presence of TVS Motor in Europe, post the Norton Motorcycles buy last year.

TVS Motors share price ended the day up by 0.4% on the BSE.

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 Trades Marginally Lower, Dow Futures Up by 50 Points
12:30 pm

Share markets in India are presently trading marginally lower.

The BSE Sensex is trading down by 24 points, down 0.04%, at 59,117 levels.

Meanwhile, the NSE Nifty is trading down by 32 points.

Bajaj Finserv and Kotak Bank are among the top gainers today. Tata Steel and Coal India are among the top losers today.

The BSE Mid Cap index is trading down by 1.1%

The BSE Small Cap index is trading down by 1.4%.

On the sectoral front, stocks from the metal sector are witnessing most of the selling pressure.

On the other hand, stocks from the software sector are 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 11 points (up 0.1%) while Dow Futures are trading up by 50 points (up 0.1%).

The rupee is trading at 73.48 against the US$.

Gold prices are trading up by 0.1% at Rs 46,130 per 10 grams.

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Gold prices struggled in Indian markets today after a sharp fall in the previous session. On MCX, gold futures were down slightly to Rs 46,050 per 10 grams. In the previous session, gold had dropped 1.7% or Rs 807 per 10 grams, extending its fall to Rs 1,200 in three days.

In global markets, spot gold rates were flat at US$ 1,754.9 per ounce after a sharp fall in the previous session. A firmer dollar hurt the allure of gold for holders of other currencies.

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?

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Moving on to stock-specific news...

Among the buzzing stocks today is Kotak Mahindra Bank.

Kotak Mahindra Bank announced that it has acquired the vehicle financing loan portfolio of Volkswagen Finance (VWFPL), Volkswagen Group's Indian captive financing arm.

Kotak Mahindra Prime (Kotak Prime) will acquire the passenger cars and two-wheelers portfolio, while Kotak Mahindra Bank (KMBL) will acquire the commercial vehicles portfolio of VWFPL.

With this, the company will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around Rs 13.4 bn.

The acquired loans are classified as 'Standard Loans' as per the current Reserve Bank of India (RBI) guidelines. In addition to the standard loans, Kotak has also acquired the non-performing assets portfolio of VWFPL.

D Kannan, Director of Kotak Mahindra Prime said,

  • The strategic intent behind this acquisition is to further strengthen Kotak's vehicle financing loan portfolio and expand our market share. VWFPL has been operating in the country since 2009 and during this time has built a strong customer portfolio.

    The long-term growth prospects of the Indian vehicle market are very attractive and this acquisition reinforces Kotak's standing as one of the leading vehicle financing players.

Kotak Mahindra Bank is an Indian banking & financial services company. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management.

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

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At the time of writing, Kotak Mahindra Bank shares were trading up by 2.6% on the BSE.

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 pharma sector...

Biocon Biologics, Serum Institute Life Sciences Announce Strategic Alliance

Biocon Biologics (BBL), a subsidiary of Biocon, and Serum Institute Life Sciences (SILS), a subsidiary of Serum Institute of India, have announced a strategic alliance under which BBL will receive access to 100 m doses of vaccines per annum for 15 years in return for an equity stake to SILS.

Under the terms of the agreement, BBL will offer a 15% stake to SILS, at a post-money valuation of US$ 4.9 bn.

BBL will also generate a committed revenue stream and related margins from the second half of the financial year 2023. Adar Poonawalla will have a seat on the board of Biocon Biologics.

In addition to vaccines, the strategic alliance will develop antibodies targeting several infectious diseases like Dengue, HIV, etc.

The two companies will enter Service Level Agreements (SLAs) to manufacture and distribute the vaccines and antibodies. Vaccines are a complementary business fit to BBL and provide a new dimension to improving global healthcare.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon & Biocon Biologics, said,

  • This alliance will complement the strengths and resources of the two leading players in vaccines and biologics. Our shared vision of building large scale businesses having global impact makes it a unique and synergistic value creation opportunity.

Biocon Biologics will also establish, at its cost, a vaccine research and development (R&D) division to support the strategic alliance in developing both vaccines and biologics for communicable diseases.

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 Jumps 400 Points to Hit Fresh Record High; Bajaj Finance & ITC Top Gainers
09:30 am

Asian stock markets are trading on a steady note today as traders weighed risks from China to the global recovery and the prospect of reduced Federal Reserve stimulus.

The Hang Seng is trading up by 0.3%, while the Shanghai Composite is down 0.6%. The Nikkei is trading higher by 0.5%.

In US stock markets, Wall Street indices fell on Thursday as losses in heavyweight tech and oil stocks offset cheer over strong retail sales indicating economic resilience.

The Dow Jones Industrial Average fell 63 points, or 0.2% while the Nasdaq Composite added 20 points, or 0.1%.

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

The BSE Sensex is trading up by 391 points. Meanwhile, the NSE Nifty is trading higher by 98 points.

Bajaj Finance and ITC are among the top gainers today.

Tata Steel, 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 0.3%.

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Sectoral indices are trading mixed with stocks in the realty sector and banking sector witnessing buying interest.

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

Shares of Sunteck Realty and Avenue Supermarts hit their 52-week highs today.

The rupee is trading at 73.51 against the US$.

Gold prices are trading down by 0.1% at Rs 46,050 per 10 grams.

Meanwhile, silver prices are trading up by 0.2% at Rs 61,223 per kg.

Crude oil prices are flat today even as more supply came back online in the US Gulf of Mexico following two hurricanes.

Speaking of stock markets, in her latest video, Richa Agarwal explains how you should use P/E ratio for better investing decisions.

Tune in to the below video to know more:

Moving on to stock specific news...

Hindustan Copper is among the top buzzing stocks today.

Centre's up to 10% stake sale in Hindustan Copper received good response on day 1 with institutional investors putting in bids of over Rs 7 bn.

As against the over 43.5 m shares on offer, institutional investors put in bids for more than 61.4 m shares, or 1.41 times the offer size.

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The government is selling 10% stake in Hindustan Copper which includes a green-shoe option of 5%.

The floor price for this offer for sale (OFS) was set at Rs 116 per share.

If the OFS is subscribed fully, this 10% stake sale would fetch the government around Rs 11 bn.

The share sale will open for retail investors today.

At present, the government holds 72.76% stake in the company, under the administrative control of the Mines Ministry.

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 up by 0.3%.

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.

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 telecom sector, Bharti Airtel Chairman Sunil Bharti Mittal has reportedly spoken to Vodafone Group CEO Nick Read about the need to invest more.

Advising Vodafone Idea to pump in funds to stay in the game, Mittal said at a virtual press meet on Thursday that they need to contribute their own money in the company.

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UK-based Vodafone and its joint venture partner in India, Aditya Birla Group, have maintained till recently that they would not throw good money after bad.

Mittal also had a conversation with Reliance Industries Chairman and MD Mukesh Ambani on all telcos working together.

He said they spoke about the need for synergy between the telecom players.

  • Time has come for three plus one operators to close ranks and work as a team for building telecommunications rather than being fierce competitors. We will compete, but just like in other industries like steel, build the eco system together.

This comes just a day after the centre announced a relief package for the telecom sector.

The government has offered a moratorium, which will be applicable from 1 October. Any company that decides to avail of it would pay interest at the rate of the marginal cost of funds-based lending rate (MCLR) plus 2%.

Acknowledging that Bharti Airtel would avail the moratorium of dues offered by the government, Mittal said the company would redirect the cash flow to aggressively build networks.

Suggesting collaboration through sharing infrastructure like FTTH, local loop unbundling, fibre and submarine cable, Mittal said companies should also work together in bringing in more discipline in market practices like commissions, dealer margins, portability amongst others.

Stressing the need for tariff hike by 20-30% to sustain the high capex, Mittal said Airtel had already taken a lead.

He also said that their next big bet would probably be the infrastructure space.

Bharti Airtel share price has opened the day up by 0.5%.

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


SGX Nifty Up 84 Points; Indicates Firm Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a positive note today.

At 8:10 am, it was trading up by 84 points, or 0.5% higher at 17,695 levels.

Trends on SGX Nifty indicate a firm opening for Indian stock markets.

Asian stock markets are trading on a steady note today as traders weighed risks from China to the global recovery and the prospect of reduced Federal Reserve stimulus.

The Hang Seng is trading up by 0.2%, while the Shanghai Composite is trading down by 0.3%. The Nikkei is trading up by 0.5%.

In US stock markets, Wall Street indices fell on Thursday as losses in heavyweight technology and oil stocks offset cheer over strong retail sales indicating economic resilience.

US retail sales unexpectedly increased in August, likely tempering expectations for a sharp slowdown in economic growth in the third quarter.

Treasury yields and the dollar stayed higher following surprise strength in US retail sales, which eased worries over the impact of the delta variant and highlighted the case for the Federal Reserve to scale back pandemic-era emergency support.

Meanwhile, the labour market remained under pressure, with data showing initial jobless claims were slightly more than expected last week.

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The Dow Jones Industrial Average fell 63 points, or 0.2%, the S&P 500 lost 7 points, or 0.2% and the Nasdaq Composite added 20.4 points, or 0.1%.

US stock futures are trading on a flat note today with Dow Futures down by 12 points.

Gold prices were set for a second weekly loss as a firm dollar dented the metal's allure for holders of other currencies while investors await a key US Federal Reserve meeting for clues on how soon the central bank will start to taper stimulus.

Crude oil prices are flat today even as more supply came back online in the US Gulf of Mexico following two hurricanes.

Back home, BHEL and Infosys will be among the top buzzing stocks today.

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

You can watch the video here: Millionaire Trader Mindset

To know the top cues in today's stock market session, check out the pre-open commentary here.

Stay tuned for more updates on Indian stock markets in the upcoming commentary.


Air India Privatisation, Infosys' Strategic Collaboration, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a strong note yesterday.

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 yesterday, 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.

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

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

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.

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

At 8:10 am today, the SGX Nifty was trading up by 84 points, or 0.5% higher at 17,695 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 0.8% at Rs 46,529 per 10 grams at the time of closing stock market hours yesterday.

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:

Top Stocks in Focus Today

Among the buzzing stocks today will be Tata group stocks.

Tata Group and a grouping led by SpiceJet chairman Ajay Singh placed financial offers for Air India on 15 September, 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.

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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.

In other news, 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.

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.

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

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.

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.

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.