Sensex Ends Above 60,000-Mark, Nifty Tops 17,850; Asian Paints & Eicher Motors Climb 3%
Closing

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

Hitting an important milestone, Sensex breached the 60,000 mark for the first time ever today, while Nifty also inched closer to 18,000 mark.

At the closing bell, the BSE Sensex stood higher by 163 points (up 0.3%).

Meanwhile, the NSE Nifty closed higher by 30 points (up 0.2%).

Asian Paints and Mahindra & Mahindra were among the top gainers today.

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

The SGX Nifty was trading at 17,854, up by 20 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended down by 1.1% and 0.3%, respectively.

Sectoral indices ended on a mixed note with stocks in the telecom sector and realty sector witnessing most of the buying interest.

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

Shares of L&T Infotech and Deepak Nitrite hit their respective 52-week highs today.

Asian stock markets ended on a mixed note today as lack of information from struggling property giant Evergrande about its bond payments spurred uncertainty among investors.

The Hang Seng and the Shanghai Composite ended the day down by 1.3% and 0.8%, respectively. The Nikkei ended up by 2.1% in today's session.

US stock futures are trading on a negative note today with the Dow Futures trading down by 112 points.

The rupee is trading at 73.70 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 46,032 per 10 grams.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani shares how you can profit from the alochol stocks cycle, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Make in India: Tata-Airbus Sign Rs 220 Bn Deal for Military Aircraft

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

Tata and Airbus have signed a Rs 220 bn deal for the production of 56 C-295 transport aircraft for the air force. This is the biggest private manufacturing military order to date.

In a statement, Tata Trusts Chairman Ratan Tata said,

  • The clearance of the joint project between Airbus Defence and Tata Advanced Systems to build the C-295 is a great step forward in the opening up of aviation and avionics projects in India.

Under the deal, 40 of the 56 planes will be manufactured in India by a consortium of the Airbus Defence and Space and Tata Advanced Systems (TASL) within 10 years of signing the contract, officials said.

16 aircraft will be delivered in a flyaway condition by the Airbus Defence and Space within 48 months of signing the contract. The C-295 MW aircraft is a transport plane of 5-10 tonne capacity.

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The C-295 is a multirole aircraft with several reconfigurations to meet mission requirements, Ratan Tata added. It envisages total manufacturing of the aircraft in India. It will create a domestic supply chain capability to international standards, which has never been undertaken before.

This is the first project of its kind in which a military aircraft will be manufactured in India by a private company. A large number of detail parts, sub-assemblies and major component assemblies of aerostructure are scheduled to be manufactured in India.

The new C-295 MW will replace the ageing fleet of Avro aircraft. The in-principle approval for the Avro replacement programme was accorded around nine years back.

The defence ministry had said that before the completion of the deliveries, a servicing facility for the C-295MW aircraft is scheduled to be set up in India.

It is expected that this facility will act as a regional maintenance, repair and overhaul (MRO) hub for various variants of the C-295 aircraft.

How this pans out remains to be seen.

Moving on to news from the food & tobacco sector...

Jubilant FoodWorks Acquires 25% Stake in Wellversed Health

Shares of Jubilant Foodworks fell 2.5% in intra-day trade today despite investment in Gurugram-based nutrition company Wellversed Health.

Leading quick service restaurants operator and master franchise of brands such as Domino's Pizza and Dunkin' Donuts, Jubilant FoodWorks acquired a 25% stake in nutrition company Wellversed Health.

The food service company will invest Rs 100 m in Wellversed in two tranches, according to a recent regulatory filing by the company to the stock exchanges.

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The first tranche of Rs 65 m will be invested on the closing date as defined in the share subscription agreement and the second tranche of a sum of Rs 35 m will be covered in a period of nine months from the disbursement of the first tranche.

Some significant terms of the agreement include that Jubilant FoodWorks will have the right to nominate one non-retiring director on the board (one out of four) of Wellversed, and an observer to the board.

Wellversed Health offers a variety of food products which are customised for specific nutrition and dietary needs including gluten-free, keto, vegan, high-protein, diabetic conditions and regular immunity.

The net revenue of Wellversed in fiscal 2019-20 was Rs 48.9 m. The company was incorporated on 10 August 2017.

Jubilant FoodWorks share price ended the day down by 1.4% on the BSE.

Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these for stages.

This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.

If you're interested to know how a stock's life cycle can offer you the opportunity to make money in every phase, you can read about it in one of the recent editions of Profit Hunter: One Cycle That Defines Everything in the Markets

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 Down by 44 Points
12:30 pm

Share markets in India are presently trading marginally higher.

The BSE Sensex is trading up by 149 points, up 0.3%, at 60,034 levels.

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

Asian Paints and HCL Technologies are among the top gainers today. JSW Steel and Tata Steel are among the top losers today.

The BSE Mid Cap index is trading down by 0.4%

The BSE Small Cap index is trading up by 0.04%.

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

On the other hand, stocks from the metal 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 49 points (down 0.3%) while Dow Futures are trading down by 44 points (down 0.1%).

The rupee is trading at 73.71 against the US$.

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Gold prices are trading down by 0.1% at Rs 46,015 per 10 grams.

Gold prices edged lower in Indian markets today after falling more than 1% in the previous session, helped by a subdued dollar, although Federal Reserve's plans on reducing stimulus to the US economy kept the bullion on track for a third straight week of declines.

In global markets, gold prices plunged after record gains in global equities and benchmark 10-year bond yields in the United States.

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.

Even with the recent volatility in prices, gold and silver remain among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

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

Speaking of the stock market, India's #1 trader, Vijay Bhambwani shares how you can profit from the alochol stocks cycle, in his latest video for Fast Profits Daily.

Moving on to stock-specific news...

Among the buzzing stocks today is Dilip Buildcon.

Shares of Dilip Buildcon jumped over 8% on the bourses in intraday trade today after the Supreme Court confirmed the appointment of the company and VPR Mining Infrastructure as mine developer and operator for the Pachhwara Central Coal Block mine.

The total contract value of the deal stands at Rs 321.6 bn.

The Pachhwara Central Coal Block is located in the Pakur district of Jharkhand and was reserved for end use by the power sector. It was allotted to Punjab State Power Corporation (PSPCL) for its captive utilisation.

The mineable reserve of the block is 382.1 MMT (million metric tonnes), which was to be exploited over 55 years by selection and appointment of a mine developer-cum-operator through a competitive bidding process.

The consortium of DBL and VPR emerged as the L1 bidder in the reverse auction conducted by PSPCL and consequently the letter of award (LoA) was issued in its favour. On 21 September, a Supreme Court bench took the decision in accordance with Section 11 of the Coal Mines Act of 2015.

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

At the time of writing, Dilip Buildcon shares were trading up by 3.4% on the BSE.

Moving on to news from the IPO space...

Sansera Engineering Shares List at 9% Premium to Issue Price

Automotive components manufacturer, Sansera Engineering listed on the exchanges today at Rs 811.5, a 9% premium to its issue price of Rs 744 per share.

The stock opened at Rs 811.4 on the BSE, while the opening price on the NSE was Rs 811.5.

The Rs 12.8 bn public issue, which opened during 14-16 September, saw a subscription of 11.5 times.

It received bids for 138 m equity shares against the IPO size of 12.1 m shares, generating bids worth Rs 103.3 bn.

Qualified institutional buyers bought 90.6 m shares which was 26.5 times the portion set aside for them. The portion reserved for retail investors was subscribed 3.2 times while that of non-institutional investors subscribed 11.4 times.

The IPO was a complete offer for sale.

The company issued more than 17.2 m equity shares through its public issue. The price band for the offer was Rs 734-744 per share.

Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors.

It is one of the top ten global suppliers of connecting rods within the light vehicle segment and commercial vehicle segment.

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

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


Sensex Crosses 60,000 for the First Time, Nifty Tops 17,900; IT Stocks Lead Rally
09:30 am

Asian share markets are trading mixed today as investors nervously await developments on the fate of troubled Chinese property giant Evergrande.

The Hang Seng is trading on a flat note, while the Shanghai Composite is down 0.2%. The Nikkei is trading higher by 2%.

In US stock markets, Wall Street indices jumped for a second day as fears around a crisis in China's property market eased somewhat and as the Federal Reserve kept current monetary stimulus in place for just a little bit longer.

Investors are optimistic that a looming reduction in Federal Reserve's stimulus shows confidence in the recovery from the pandemic.

The Dow Jones Industrial Average rose 506 points, or 1.5% and the Nasdaq Composite added 155 points, or 1%.

Back home, Indian share markets have opened on a positive note. The Sensex crossed the 60,000-mark for the first time in history while the Nifty also topped 17,900.

The BSE Sensex is trading up by 298 points. Meanwhile, the NSE Nifty is trading higher by 77 points.

Infosys and HCL Tech are among the top gainers today. NTPC, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.4% while the BSE Small Cap is trading higher by 0.7%.

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Sectoral indices are trading mixed with stocks in the IT sector and capital goods sector witnessing buying interest.

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

Shares of L&T Infotech and Coforge have hit their respective 52-week highs.

The rupee is trading at 73.80 against the US$.

Gold prices are trading down by 0.1% at Rs 46,016 per 10 grams.

Meanwhile, silver prices are down 0.2% to Rs 60,699 per kg.

Speaking of stock markets, in his latest video, Aditya Vora talks about the top 4 sectors for 2022.

The relentless rally in the stock market over the past 15 months has lifted the tide on all the boats. So, which sectors should you bet on in 2022?

Aditya answers this question in the video below. Tune in to find out more:

In news from the power sector, Union power minister RK Singh said on Thursday all state governments have agreed to adopt the Rs 3-lakh-crore revival scheme for power distribution entities.

Though the states were given a deadline of 31 December to apply for assistance under the scheme, Singh said that most states would submit applications by October-end itself.

Loss-making discoms will have access to government's funds only after preparing a convincing programme for loss reduction, which has to be approved by the respective state governments.

Under the scheme to be implemented in the years through fiscal 2026, the centre will provide Rs 976.3 bn. The scheme will help the states for strengthening distribution systems.

Singh also exhorted the state officials to avail benefits of PM-KUSUM scheme for solarisation of agricultural feeders, which is touted to save money through lower subsidy disbursal to the agriculture sector.

Note that distribution companies' (discom) losses were down 38% YoY at Rs 380 bn in fiscal 2020. This was due to corrective actions like timely tariff revisions and improvement in billing and collection efficiency.

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The discoms' losses had declined in fiscals 2017 and 2018 thanks to the UDAY scheme launched in November 2015, as governments of 16 states have taken over around Rs 2.32 lakh crore debt of their discoms, resulting in lowering of the interest rates on these loans to 7-8.5% from around 11-12% earlier.

In fiscal 2019, losses had surged 83% annually to Rs 613.6 bn, mainly due to delayed subsidy disbursal by state governments and inadequate tariff hikes.

The government is also implementing Rs 1.35-lakh-crore loan package through PFC-REC to help clear the dues to power generators.

All positives are coming together for the power sector and it is set to ride a wave of momentum.

Recently, ace chartist at Equitymaster, Brijesh Bhatia recorded a video explaining why he is bullish on power stocks. You can check it out here: Why I'm Bullish on Power Stocks.

Also speaking of the power sector, it's interesting to note 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's 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.

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Moving on to news from the media sector, Dish TV is among the top buzzing stocks today.

Yes Bank has called an extraordinary general meeting (EGM) of shareholders to remove the entire board of Dish TV directors led by Jawahar Goel and replace it with its own nominees.

In a communication to the company's board of directors on Thursday, Yes Bank said instead of placing its resolutions in the annual general meeting (AGM) to be held on 27 September, the company has postponed the AGM thus delaying the entire process.

Hence, the bank asked Dish TV to call an EGM to induct its seven nominees on the board and remove Goel and four directors.

Currently, Yes Bank owns a 25% stake in Dish TV while its promoters led by Goel own only 6%.

Goel is the younger brother of Subhash Chandra whose flagship firm, Zee Entertainment announced a merger with its rival, Sony to create a US$2 bn entertainment major.

Yes Bank had lent Rs 30 bn to Essel group promoters but as they defaulted on loans, the Bank invoked pledged shares of the promoters in May last year.

Giving reasons for replacing the board, the private lender said the present board of directors has approved a rights issue process, pending objections raised with the board several times.

It went ahead with the rights issue solely to dilute its shareholding and prejudice the interests of the bank which is the single largest shareholder of the company as of date.

Here's what it said in a notice:

  • The board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the company being various banks and financial institutions holding about 45% shareholding in the company. The Dish TV board is purportedly acting at the behest of certain minority shareholders holding merely 6% of the shares in the company.

Further, the bank said in its letter dated 18 September, it has submitted details of the proposed directors to enable the company to apply to the Ministry and seek their approval.

How this pans out remains to be seen. Meanwhile we will keep you updated on the latest developments from this space.

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


SGX Nifty Indicates a Flat Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a flat note today.

At 8:10 am, it was trading up by 3 points, or 0.1% higher at 17,845 levels.

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

Asian stock markets are trading on a positive note today following their US peers, which were buoyed after the Federal Reserve avoided any nasty surprises in its policy statement and said it could soon begin scaling down its asset purchases.

The Hang Seng is trading on a flat note, while the Shanghai Composite is trading up by 0.2%. The Nikkei is trading up by 1.9%.

In US stock markets, Wall Street indices jumped for a second day as fears around a crisis in China's property market eased somewhat and as the Federal Reserve kept current monetary stimulus in place for just a little bit longer.

Investors are optimistic that a looming reduction in Federal Reserve's stimulus shows confidence in the recovery from the pandemic.

The US market got an additional boost from the Fed on Wednesday afternoon with the central bank indicating no immediate removal of stimulus policies. The central bank issued a statement following the meeting that said if progress continues 'as expected,' then a 'moderation in the pace of asset purchases may soon be warranted.'

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The Dow Jones Industrial Average rose 506 points, or 1.5%, the S&P 500 gained 53.3 points, or 1.2% and the Nasdaq Composite added 155.4 points, or 1%.

US stock futures are trading on a flat note today with Dow Futures down by 20 points.

Gold prices edged higher today after falling more than 1% in the previous session, helped by a subdued dollar, although Federal Reserve's plans on reducing stimulus to the US economy kept the bullion on track for a third straight week of declines.

Crude oil prices rose on Thursday, with Brent crude touching its highest level in more than two months, supported by growing fuel demand and a draw in US crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes.

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

In his latest video for Fast Profits Daily, India's #1 trader, Vijay Bhambwani talks about how you can multiply your money in sugar stocks

You can watch the video here: Multiply Your Money in Sugar Stocks

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.


4 Factors Why Markets Surged, Oyo's US$1.2 Bn IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a strong note yesterday.

Benchmark indices hit fresh highs amid positive news on Evergrande crisis and Federal Reserve's tapering announcement.

At the closing bell yesterday, the BSE Sensex stood higher by 958 points (up 1.6%).

Meanwhile, the NSE Nifty closed higher by 276 points (up 1.6%).

Bajaj Finserv and Hindalco were among the top gainers.

HDFC Life Insurance and Dr. Reddy's Lab, on the other hand, were among the top losers.

The BSE Mid Cap index and the BSE Small Cap index ended up by 1.3% and 0.9%, respectively.

Sectoral indices ended on a positive note with stocks in the realty sector, banking sector and finance sector witnessing most of the buying interest.

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

Shares of KEI Industries and Persistent Systems hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading up by 8 points, or 0.1% higher at 17,850 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 46,468 per 10 grams at the time of closing stock market hours yesterday.

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Here are 4 Factors Why Indian Share Markets Rallied

Fed announcement: The biggest trigger for the Indian markets is considered to be the support from the US markets amid the Federal Reserve policy decision on Wednesday to keep interest rates steady.

The US Fed indicated that 'moderation in the pace of asset purchases may soon be warranted' and even then, markets the world over, including India, rejoiced.

It has not given any timeline for tapering but it can be expected to begin as soon as November this year and a rate hike in 2022 looks a clear possibility.

Government reforms & liquidity push: The continuous reforms being undertaken by the government is helping improve the outlook for sectors thus pushing markets higher.

The production linked incentive (PLI) schemes for the various sectors and the latest reforms for the telecom sectors are some such examples. Overall, this is coming at a time when people are losing interest in China. This is turning to be a very positive thing for Indian markets.

Also, strong interest from retail investors and foreign institutional investors (FIIs) is among other factors that are keeping the bull market intact.

Resolving crisis in China: Some positive news from struggling developer China Evergrande Group also boosted investor sentiment. One of the units of Evergrande said that it has 'resolved' a coupon payment on an onshore bond.

Concerns also eased after People's Bank of China injected US$17 bn into the banking system. This boosted the global sentiment, which rubbed off on Indian markets too.

Further, experts believe investors as India are seeing a silver lining amid the Chinese crisis. They believe the Chinese crackdown earlier and the Evergrande crisis now bode well for India, as it can facilitate capital flows.

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Realty stocks rally: Meanwhile, the re-opening theme, economy revival, and declining covid cases are the domestic factors aiding benchmarks.

Realty, hospitality, and entertainment stocks have become the most beneficial sectors due to these multiple triggers. Of all the benefitted sectors, realty stocks are powering more strength to the Indian markets on the back of a strong outlook.

Moreover, the majority of the lenders coming out with home loan rate cuts as a festive offer, had not just only helped the banks and financials to pick up the business but it is also creating an opportunity for the realty sector.

In the last four sessions, the BSE Realty Index has gained around 20%, and has touched a new 52-week high to 4,045.7 levels surging for around 11% yesterday. The surge in the index is mostly led by Godrej Properties up near 12% to hit a new record high on the BSE.

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!

Speaking of the stock market, India's #1 trader, Vijay Bhambwani talks about how you can multiply your money in sugar stocks, 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 Mphasis.

Mphasis share price surged over 4% and touched a 52-week high of Rs 3,392, a day after the company announced the acquisition of US-based Blink Interactive, Inc.

Mphasis Corporation, USA, a wholly-owned subsidiary of the company, has acquired Blink Interactive, Inc, a Washington Corporation, consequent to signing a definitive agreement regarding the acquisition.

The acquisition is expected to provide access marquee logos, strengthen experience business and is leadership and revenue growth accretive, the company said.

The company has acquired a 100% stake in Blink for a total consideration of up to US$94 m, including earnouts.

Infosys share price will also be in focus today.

Infosys announced a strategic collaboration with Amazon Web Services (AWS) to develop quantum computing capabilities and use cases.

Infosys will use Amazon Braket to explore and build multiple use cases in quantum computing as part of Infosys Cobalt cloud offerings.

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Amazon Braket is a fully managed quantum computing service that helps scientists and developers get started with the technology and accelerate research and discovery.

This will enable researchers and developers to experiment and study complex computational problems as quantum technologies continue to evolve.

Enterprises will get access to use cases for rapid experimentation and can explore how quantum computing can potentially help them in the future in a variety of areas, assess new ideas and plan adoption strategies to drive innovation.

The use of Amazon Braket by Infosys aims at getting businesses ready for a future where quantum computers will impact business.

Paras Defence IPO Oversubscribed by 304.26 Times on Final Day

Paras Defence and Space Technologies' maiden public offer continues witnessed healthy response from investors.

The issue has been oversubscribed by 304.26 times receiving bids for 2.17 bn equity shares against initial public offer (IPO) size of 7.14 m shares on 23 September, the final day of bidding.

Total bids received were worth more than Rs 380 bn at upper price band of Rs 175 per share.

Retail investors, which remained at the forefront to support the issue, have put in bids 112.81 times their reserved portion, while a part set aside for non-institutional investors (NII or HNIs) is subscribed 927.70 times.

Qualified institutional buyers, including FIIs, domestic financial institutions and mutual funds, bought 169.65 times shares against their reserved portion.

The company plans to mobilise Rs 1.7 bn through its public issue, of which it already garnered Rs 512.3 m from anchor investors before the issue opening, at higher end of price band of Rs 165-175 per share.

Oyo to File for US$ 1.2 bn IPO Next Week

According to a leading financial daily, Oyo Hotels & Homes, a SoftBank Group-backed Indian hospitality startup, is expected to file for an IPO next week.

The hotel aggregator's IPO is tentatively pegged at US$ 1-1.2 bn.

The initial share sale will consist of a fresh issue of shares and an offer for sale from existing shareholders.

The listing plan follows a stellar debut by food delivery firm Zomato in July. Berkshire Hathaway Inc.-backed Paytm and private equity firm TPG-backed Nykaa have also filed for their IPOs.

Oyo, in which SoftBank owns a 46% stake, has endured months of layoffs, cost-cuts and losses during the global health crisis. Its founder and CEO Ritesh Agarwal had said in July that business was likely to return to levels seen before the second wave of Covid-19 infections in India and grow from there.

Last month, it received a US$ 5 m investment from Microsoft.

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

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