Indian Indices End Flat; Nestle, HDFC and ICICI Bank Among Top Losers
Closing

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

Benchmark indices fluctuated between gains and losses ahead of Fed meeting outcome and unknown risks from Evergrande crisis in China.

At the closing bell, the BSE Sensex stood lower by 78 points (down 0.1%).

Meanwhile, the NSE Nifty closed lower by 15 points (down 0.1%).

Coal India and Tech Mahindra were among the top gainers today.

Nestle India and HDFC, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,558, down by 2 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 1.5% and 1.2%, respectively.

On sectoral front, huge gains were seen in the realty stocks after the BSE Realty index ended the day up by 8.4%.

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

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

{inlineads1}

Asian stock markets ended on a mixed note today as investors tried to digest the crisis at Chinese property giant Evergrande. Markets in Korea and Hong Kong were shut.

The Shanghai Composite ended the day up by 0.4%, while the Nikkei ended down by 0.7%.

US stock futures are trading on a firm note today with the Dow Futures trading up by 200 points.

The rupee is trading at 73.87 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 46,674 per 10 grams.

Speaking of stock markets, Brijesh Bhatia talks about how you can protect your portfolio in a market crash, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the banking sector, Axis Bank was among the top buzzing stocks today.

Axis Bank has committed Rs 300 bn lending till fiscal year 2025-26 under its sustainable financing framework.

These commitments are in line with the Sustainable Development Goals (SDGs), supporting India's commitments under the Paris Agreement.

As part of its commitments, the bank has set a target of incremental lending of Rs 300 bn over the next 5 years, under wholesale banking towards pertinent sectors included in its Sustainable Financing Framework (SFF).

Environmental, Social and Governance (ESG) is a measure which investors use as a tool to assess how good the practices of a company are. For the last 3-4 years, the words sustainability and ESG have made people sensitive about the whole idea of a sustainable planet.

Rajesh Dahiya, Executive Director (Corporate Centre), Axis Bank said,

  • The bank's existing wholesale banking portfolio towards SFF, including green and social sectors, is little over Rs 290 bn and it intends to lend to companies where there are green practices.

    After five years till 2025-26, the bank will assess these lendings to see positive, social, and environmental outcomes and increase it further.

Going forward, the lender will also scale down its exposure to carbon-intensive sectors in its wholesale banking business portfolio.

The lender said it is expanding its ESG risk coverage in credit appraisal under its ESG policy for lending.

Axis Bank share price ended the day down by 0.9% on the BSE.

{inlineads2}

Moving on to news from the IT sector...

KPIT Tech Stock Jumps on Nod to Buy Germany's Future Mobility

Shares of KPIT Technologies surged today after the company's board approved the acquisition of Germany's Future Mobility.

Auto industry-focused technology firm KPIT Technologies today said its board of directors has approved acquisition of 25% stake in Germany-based Future Mobility Solutions GmbH (FMS), and the remaining stake over the next three years.

In an exchange filing, the company said it expects the acquisition of first tranche of 25% stake in Future Mobility to be completed in September 2021, while 100% acquisition is expected by the last quarter of financial year 2023-24.

The total consideration for 100% shareholding will not exceed 15.6 m euros, KPTI Technologies said.

The company further added,

  • FMS will add certain unique proprietary offerings in the autonomous driving domain.

    The partnership will improve KPIT access to one strategic client with new offerings and strengthen KPIT market presence in Germany.

Future Mobility is engaged in software and feature development in autonomous driving, ADAS and vehicle safety and integration and validation.

Future Mobility had a turnover of 4.3 m euros in calendar year 2020, which is expected to increase to 5.4 m euros in 2021.

{inlineads3}

The company has over 50 employees and is headquartered in Gaimersheim in Germany. It also has an office in Frankfurt in the country.

KPIT Tech share price ended the day up by 6.1% 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 Flat, Dow Futures Up by 200 Points
12:30 pm

Share markets in India are presently trading flat.

The BSE Sensex is trading up by 4 points, flat, at 59,009levels.

Meanwhile, the NSE Nifty is trading up by 3 points.

Tech Mahindra and Coal India are among the top gainers today. HDFC and HUL are among the top losers today.

The BSE Mid Cap index is trading up by 1.2%

The BSE Small Cap index is trading up by 1.1%.

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

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

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

Nasdaq Futures are trading up by 61 points (up 0.4%) while Dow Futures are trading up by 200 points (up 0.6%).

The rupee is trading at 73.79 against the US$.

Gold prices are trading up by 0.2% at Rs 46,725 per 10 grams.

{inlineads1}

In global markets, gold rates were flat today ahead of US Fed policy decision later in the day. Uncertainties triggered by China Evergrande's debt crisis also supported gold on the lower side. Spot gold was flat at US$ 1,775.6 per ounce.

Gold prices struggled in Indian markets today amid weak global cues. On MCX, gold futures prices were slightly lower at Rs 46,633 per 10 grams. In the previous session, gold had jumped 0.7%.

Note that gold prices have been volatile in India this year after hitting a record high of Rs 52,200 last year.

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 Nucleus Software Exports.

Shares of Nucleus Software Exports surged 16% on the BSE in intra-day trade today after the company said its board will meet on Friday, 24 September, 2021 to consider a proposal for share buyback.

The stock of the information technology (IT) software products company had hit a 52-week high of Rs 765.4 on 2 July, 2021.

The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.

Despite today's surge, in the past three months, Nucleus Software Exports has underperformed the market by gaining 0.5%, as compared to a 12% rally in the S&P BSE Sensex.

The company is a leading provider of lending and transaction banking solutions to the global financial services industry.

{inlineads2}

For the June 2021 quarter, Nucleus Software posted an 83% year on year (YoY) and 78% quarter on quarter (QoQ) drop in its consolidated net profit at Rs 60 m.

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

At the time of writing, Nucleus Software Exports shares were trading up by 10% on the BSE.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani talks about why he is bullish about the year 2022, in his latest video for Fast Profits Daily.

Moving on to news from the power sector...

Torrent Power Acquires 156 MW Wind Energy Capacities from CESC

Torrent Power has announced the acquisition of Surya Vidyut, a wholly-owned subsidiary of RP-Sanjiv Goenka Group's CESC.

The enterprise value estimated for this acquisition is about Rs 7.9 bn, subject to closing price adjustments. The acquisition is further subject to customary conditions for transaction closure.

Surya Vidyut operates 156 MW wind power plants, spread across Gujarat, Rajasthan and Madhya Pradesh.

Prior to the transaction, CESC (53.8%), Haldia Energy (46.2%) along with other nominal shareholders collectively held 100% equity share capital of Surya Vidyut.

This acquisition marks Torrent Power's foray into the renewable energy space in the states of Rajasthan and Madhya Pradesh. It is in line with the company's strategy to grow and strengthen its position in the renewable energy sector.

With the acquisition of 156 MW wind power plants, Torrent Power's total generation capacity, including under development portfolio, will reach to around 4.9 GigaWatt (GW) with renewable portfolio of more than around 1.8 GW.

The projects have long-term power purchase agreements (PPAs) with the respective state discoms for a period of 25 years, with weighted average PPA tariff of Rs 4.7/kWh/

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

{inlineads3}

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 Flat; Tata Motors & NTPC Top Gainers
09:30 am

Asian stock markets opened lower today as investors tried to digest the crisis at Chinese property giant Evergrande. Markets in Korea and Hong Kong were shut.

The Nikkei is down 0.6% while the Shanghai Composite slipped 0.3%.

In US stock markets, Wall Street indices ended almost flat following a selloff the day before, with worries over troubles at developer China Evergrande and caution ahead of Wednesday's Federal Reserve policy news.

The Dow Jones slipped 0.2% while the Nasdaq Composite added 0.2%. The S&P declined 0.1%.

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

The BSE Sensex is trading up by 27 points. Meanwhile, the NSE Nifty is trading higher by 9 points.

NTPC and Tech Mahindra are among the top gainers today. Nestle, 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 0.7%.

{inlineads1}

Sectoral indices are trading mixed with stocks in the realty sector and power sector witnessing most of the buying.

FMCG stocks and banking stocks, on the other hand, are trading in red.

Shares of Mindtree and Pidilite Industries hit their 52-week highs today.

The rupee is trading at 73.71 against the US$.

Gold prices are trading down by 0.1% at Rs 46,612 per 10 grams.

Meanwhile, silver prices are trading up by 0.7% at Rs 60,859 per kg.

Crude oil prices rose around 1% today, extending overnight gains after industry data showed US crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.

Speaking of stock markets, Brijesh Bhatia talks about how you can protect your portfolio in a market crash, in his latest video for Fast Profits Daily.

Tune in to the below video to find out more:

In news from the media sector, Zee Entertainment (ZEE) is among the top buzzing stocks today.

Zee Entertainment has signed a merger deal with Sony Pictures Networks India, the company said in an exchange filing today.

{inlineads2}

As part of the proposed merger, which the board of directors of ZEE approved in-principle on Tuesday night unanimously, it will allow shareholders of Sony Pictures Networks India (SPN) - a step-down subsidiary of Japanese multinational conglomerate Sony Corp, to hold a majority stake in the merged entity.

ZEE will hold 47.07%, while Sony India will hold a 52.93% stake.

According to the term sheet, the promoter family is free to increase its shareholding from the current 4% to up to 20%, the company said.

The combined entity will own 75 TV channels, two video streaming services (ZEE5 and Sony LIV), two film studios (Zee Studios and Sony Pictures Films India) and a digital content studio (Studio NXT), making it the largest entertainment network in India, bigger than Star & Disney India.

They will also have over Rs 160 bn in revenues and an employee count of over 4,000.

Puneet Goenka will continue to provide services to the merged company as MD and CEO for a period of 5 years.

This is not the first time Sony has tried to acquire ZEE. In 2019, when Subhash Chandra was scouting for prospective buyers to repay lenders, Sony was one of the three shortlisted companies he was in talks with.

Note that last week, ZEE saw shareholder activism that witnessed an open call for the ouster of promoters and the incumbent management.

If the merger does go through, this will be a rare case where the promoters managed to remain in control of their company despite losing significant stake and investors' trust.

Zee Entertainment share price has opened the day up by 10%.

{inlineads3}

Moving on to news from the power sector, Tata Power has restarted fund-raising efforts for its renewables business. It is looking to raise Rs 40-55 bn for its subsidiary Tata Power Renewables Energy (TPREL).

This comes six months after it pulled out of negotiations with Malaysia's Petronas for up to US$2 bn investment.

The company had earlier conceived of a renewable energy infrastructure investment trust (InvIT) with external investors such as Petronas to pare debt, pursuing the plan for over a year before abandoning it.

The country's largest integrated power company has a stated plan to phase out coal-based capacity and expand its clean and green capacity to 80% by FY30. Renewable energy comprises over a third of its total power capacity of 13 GW.

The company is aiming for 40% green share by the year 2025.

It is also realigning its utilities business model to harness growth by focusing on niche, high-growth opportunities. One of the key growth strategies is to focus on sunrise areas that are less capital-intensive but gaining traction, such as solar EPC and pumps.

Tata Power is already moving into the business-to-consumer (B2C) value chain via electric vehicle (EV) charging stations and home automation, among other efforts.

Tata Power share price has opened the day up by 2%.

Speaking of Tata Power, have a look at the chart below to see how the stock has performed in the past year.

To know more, check out Tata Power'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 Down 32 Points, 4 Factors Behind the Sensex Rally, HAL Adjourns Split Plan, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a strong note yesterday.

Improved optimism in European markets and strength in US equity futures boosted market confidence at home, as investors awaited the start of the US Federal Reserve policy meeting.

At the closing bell yesterday, the BSE Sensex stood higher by 514 points (up 0.9%).

Meanwhile, the NSE Nifty closed higher by 165 points (up 1%).

JSW Steel and ONGC were among the top gainers.

Maruti Suzuki and BPCL, on the other hand, were among the top losers.

The BSE Mid Cap index and the BSE Small Cap index ended up by 0.8% and 0.1%, respectively.

On the sectoral front, gains were largely seen in the realty sector, metal sector, and IT sector.

Shares of Pidilite Industries and ITC hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading down by 32 points, or 0.2% lower at 17,530 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading up by 0.1% at Rs 46,334 per 10 grams at the time of closing stock market hours yesterday.

{inlineads1}

Here are 4 Factors which Pushed Indian Share Markets Higher

FIIs on buying spree: Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 925.4 m, data available with NSE suggested.

The fact that FPIs did not sell any shares in the past two days is also very encouraging for Indian investors.

Advantage India: There is another view that apparently, Chinese crisis bode well for India, facilitating increasing capital flows to India.

Fed meet: The US Federal Reserve's FOMC will meet on 21-22 September to take decisions on its monetary policy.

There is a possibility that the US Fed may talk about the timeline for tapering, which could be as early as November, and that may lead to cautious moves in the equity markets globally.

Other than the US Fed, the Bank of Japan will also come out with its monetary policy today.

Sectoral performance: Huge gains were seen in the realty, IT, and metal sectors. The realty sector ended up by 3.5%, while the IT sector and metal sector ended higher by 1.5% and 2.6%, respectively.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

{inlineads2}

Speaking of stock markets, in his latest video, co-head of Research at Equitymaster Rahul Shah discusses the top smallcap stocks to buy now.

The small cap index has been on a tear of late and the rally doesn't look like running out of steam anytime soon.

So, is there a way of zeroing in on small caps with limited downside but very good upside potential? How do we find such stocks?

Rahul answers these questions in the video below. Tune in to find out more...

Top Stocks in Focus Today

Among the buzzing stocks today will be SBI Cards.

Private equity firm Carlyle Group will nearly offload half of its stake in SBI Cards and Payment Services for as much as US$443 m.

CA Rover Holdings, a Carlyle entity, which as of June 2021 held a 6.5% stake in SBI Cards, will sell around 32 m shares through a block trade.

It will offer the shares at an indicative price band of Rs 1,021 to Rs 1,072.3 apiece.

This sale follows Carlyle selling a 5.1% stake in SBI Cards for Rs 48.1 bn in June, while in March, it offloaded a little more than 4% for about Rs 38 bn through block deals.

The stake sales followed SBI Cards' public listing in March last year. Carlyle divested a 10% stake in SBI Cards for around Rs 70 bn, marking the largest private equity exit through an initial share sale in India.

Note that last month, Carlyle undertook a block trade to sell its remaining stake in life insurer SBI Life Insurance for around US$289 m.

HCL Technologies share price will also be in focus today.

Shares of HCL Technologies hit a new high of Rs 1,315.10 on the BSE after the company announced a five-year digital transformation deal with US-based MKS Instruments.

It is a global provider of instruments, systems, subsystems and solutions for advanced manufacturing processes.

In a statement post market hours yesterday, the company said,

  • HCL will drive digital and cloud-enabled transformation for MKS Instruments through AI/ML-led automation, enhanced user experience with end-to-end Infrastructure services, digital workplace services and IT transformation.

HCL's board is scheduled to meet next month on 14 October to consider financial results for the quarter and half year ending September 2021.

The board will also consider the payment of a third interim dividend for the financial year 2021-22.

The record date for determining the entitlement of the shareholders for the payment of aforesaid interim dividend is 23 October 2021.

{inlineads3}

HAL Board Defers Proposal of Stock Split

Hindustan Aeronautics (HAL) deferred the proposal of stock split in yesterday's board meeting.

In a regulatory filing, the company said,

  • This is to inform that the Board of Directors of the Company in its meeting held on 21 September 2021, has deferred the proposal of sub-division of shares.

Shares of HAL traded 1.5% lower after the outcome of the board meeting at Rs 1,354.8 apiece on BSE.

On 3 September, HAL had informed the stock exchanges of a stock split decision would be considered on 21 September.

The stock had hit a 52-week high of Rs 1,456.2 on 30 August 2021. The stock hit a 52-week low of Rs 660 on 4 November 2020.

Cadila Healthcare Subsidiary Inks Deal to Sell Two Brands to Integrace

Cadila Healthcare share price fell in early trade yesterday after the company said it is going to sell its two brands.

Zydus Healthcare, a wholly owned subsidiary of Cadila Healthcare, entered into an agreement with Integrace, the purchaser, to sell two brands viz. Mifegest and Cytolog.

The transaction is expected to be completed within 30 days from the date of execution of agreement subject to customary approvals.

The purchaser is a part of the portfolio companies of private equity (PE) firm, True North.

Mifegest is an anti-progestational steroid class of drug used for medical termination of pregnancy while Cytolog tablet is a medicine used for medical abortion.

How this 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.