Sensex Ends Flat; Maruti Suzuki and M&M Among Top Nifty Gainers
Closing

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

After a strong start today, benchmark indices witnessed volatility tracking mixed global cues.

At the closing bell, the BSE Sensex stood higher by 29 points (up 0.1%).

Meanwhile, the NSE Nifty closed higher by 2 points (up 0.1%).

Maruti Suzuki and Mahindra & Mahindra were among the top gainers today.

HCL Technologies and Tech Mahindra, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,911, up by 62 points, at the time of writing.

The BSE MidCap index ended on a flat note, while the BSE SmallCap index ended down by 0.1%.

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

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

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Shares of Phoenix Mill and Inox Leisure hit their respective 52-week highs today.

Asian stock markets ended on a mixed note today.

The Hang Seng ended up by 0.1%, while the Shanghai Composite ended down by 0.8%. The Nikkei ended on a flat note today.

US stock futures are trading on a positive note today with the Dow Futures trading up by 108 points.

The rupee is trading at 73.84 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 45,960 per 10 grams.

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

Tune in to the video below to find out more:

In news from the power sector, SJVN was among the top buzzing stocks today.

State-run hydropower generator SJVN has secured 1 gigawatt (GW) solar power project contract in the bids floated by Indian Renewable Energy Development Agency (IREDA) by quoting a tariff of Rs 2.45 per unit.

This comes in the backdrop of India's solar power tariffs starting to rebound from the record lows of last December, lifted by factors such as higher commodity prices and an increase in imported solar equipment cost from next year as reported by Mint earlier.

Rising commodity costs and a 40% basic customs duty on solar modules and 25% on solar cells to be imposed from April 2022 is influencing the keenly-contested auction rounds, with developers calibrating these new realities while placing bids.

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India's solar power tariffs hit a record low of Rs 1.99 per unit in December 2020 at an auction conducted by Gujarat Urja Vikas Nigam.

Nand Lal Sharma, chairman and managing director, SJVN said,

  • SJVN bagged the full quoted capacity of 1,000-megawatt (MW) at a Viability Gap Funding (VGF) support of Rs 44.7 Lakh per MW by government of India. The power generated from above projects shall be solely for self-use or use by government/government entities, either directly or through discoms.

    SJVN participated in a VGF based competitive bidding process for solar project of capacity 5,000 MW floated by IREDA.

SJVN plans to have a 25 GW capacity by 2040. The firm has an operational portfolio of 2 GW and is executing 27 projects in hydropower, thermal, solar and wind sectors in India, Bhutan and Nepal.

The company has also pitched for more hydropower projects from Nepal as part of India's playbook of helping build a South Asia-focused energy security architecture.

SJVN share price ended the day up by 1.9% on the BSE.

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 food & tobacco sector...

United Breweries Slides on CCI Penalty

United Breweries share price slipped more than 4% today after the competition commission of India (CCI) penalised the company and rival Carlsberg India for carterlisation.

The anti-trust watchdog on 24 September imposed penalties of around Rs 9 bn on three beer-making companies and trade association All India Brewers' Association (AIBA) for cartelisation.

The CCI said SABMiller India, the makers of Foster beer, United Breweries, who make Kingfisher, and Carlsberg India resorted to cartelisation in the sale and supply of beer to various states and union territories between 2009 and at least October 2018.

While the CCI has directed United Breweries and Carlsberg India to pay Rs 7.5 bn and Rs 1.2 bn, respectively, it has given SABMiller India a 100% reduction in penalty for cooperating in the investigation.

The three companies engaged in price coordination in Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, Delhi and Puducherry, it said.

CCI also found coordination among United Breweries and Anheuser Busch InBev India with respect to purchasing second-hand bottles.

Four individuals of United Breweries, four of Anheuser Busch InBev India, six of Carlsberg India and the Director-General of AIBA were held to be liable for the anti-competitive conduct of their respective companies and association.

United Breweries share price ended the day down by 3.2% on the BSE.

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 Up by 179 Points
12:30 pm

Share markets in India are presently trading marginally higher.

The BSE Sensex is trading up by 63 points, up 0.1%, at 60,111 levels.

Meanwhile, the NSE Nifty is trading up by 10 points.

Maruti Suzuki and Tata Motors are among the top gainers today. HCL Technologies and Divi's Lab are among the top losers today.

The BSE Mid Cap index is trading down by 0.3%

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

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

On the other hand, stocks from the automobile 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 50 points (up 0.3%) while Dow Futures are trading up by 179 points (up 0.5%).

The rupee is trading at 73.61 against the US$.

Gold prices are trading up by 0.2% at Rs 46,082 per 10 grams.

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Gold prices edged higher in Indian markets today, tracking positive global cues. On MCX, gold futures rose 0.3% to Rs 46,147 per 10 grams. In the previous session, gold had edged 0.1% lower to near six-month lows. Note that gold has been volatile this year after hitting record high of Rs 56,200 last year.

In global markets, gold prices rose above US$ 1,750 as uncertainty over China's Evergrande saga boosted the safe-haven appeal of the precious metal. Spot gold rose 0.5% to US$ 1,757.8 per ounce. A downtick in US dollar also helped support gold.

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.

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 KPR Mill.

Shares of KPR Mill rallied 9% on the BSE to hit an all-time high in intraday trade today after the company carried out a stock split in the ratio 1:5.

In the past one month, the stock has soared 42%, compared to a 7.2% rise in the S&P BSE Sensex. In the past six months, it has zoomed 137%, against a 23% gain by the benchmark index.

Indian apparel companies are expected to achieve double-digit growth in the financial year 2022 with support from the Government of India (GoI).

The GoI in the Union Budget 2021-2022 announced that it would launch seven mega textile parks in three years (two parks in Tamil Nadu) to enable the textile industry to attract large investments, generate employment, and become globally competitive.

The scheme is expected to create world class infrastructure, with plug-and-play facilities to enable and create global champions in exports.

With large international buyers already looking at increasing their sourcing from India, the formation of textile parks should help India gather a bigger share of the apparel and textile export trade.

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

At the time of writing, KPR Mill shares were trading up by 3.5% on the BSE.

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

Moving on to news from the media sector...

Inox Leisure, PVR Shares Rally Upto 18%

Shares of multiplex owners Inox Leisure and PVR climbed up to 18% in Monday's trade, after the Maharashtra government announced the reopening of cinema halls and drama theatres in the state from 22 October, ahead of Diwali.

Note that theatres and movie halls across India have been closed since April this year.

Following the development, shares of Inox Leisure soared 17.8% to hit a high of Rs 412.2 on BSE while PVR climbed 10% to hit a high of Rs 1,662.2.

Except a few states, including Maharashtra and Kerala, many others have already permitted resumption of operations in cinema halls from 30 July 2021.

Post Maharashtra, it is expected that other states would lift the capacity restrictions in the absence of a third wave of Covid-19. Maharashtra, based on industry estimates, contributes 25-30% of total multiplex revenues in a normal year.

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, Nifty Open Higher; Automobile and Realty Stocks Lead
09:30 am

Asian stock markets got off to a cautious start today amid uncertainty over the Evergrande saga, as the Chinese firm missed a payment on offshore bonds last week, with further payment due this week.

The Hang Seng is up 0.3%, while the Shanghai Composite is trading down by 1.3%. The Nikkei is trading on a flat note.

In US stock markets, Wall Street indices ended flat on Friday as markets consolidated after the Federal Reserve outlook on rates and tapering of bond buying.

The Dow Jones Industrial Average gained 33 points, or 0.1% and the Nasdaq Composite ended on a flat note.

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

The BSE Sensex is trading up by 276 points. Meanwhile, the NSE Nifty is trading higher by 75 points.

Maruti Suzuki and M&M are among the top gainers today. HCL Tech, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened on a flat note. The BSE Small Cap index is trading higher by 0.6%.

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

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

Shares of PVR and KEI Industries hit their 52-week highs today.

The rupee is trading at 73.73 against the US$.

Gold prices are trading up by 0.3% at Rs 46,144 per 10 grams.

Meanwhile, silver prices are trading up by 1% at Rs 60,559 per kg.

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Gold edged higher today as persistent concerns over the fate of Evergrande and its broader impact bolstered the precious metal's safe-haven appeal.

Crude oil prices went above their July peaks as global output disruptions forced energy companies to pull large amounts of crude out of inventories, while a shortage of natural gas in Europe pushed costs up across the continent.

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

As per Vijay, Alcohol stocks have a unique cycle in the market and if you learn that, you can make a lot of profit.

Tune in to the video below to find out more:

In latest developments from the IPO space, the government has shortlisted Cyril Amarchand Mangaldas for giving legal advice on the upcoming IPO of LIC.

Law firms Crawford Bayley, Cyril Amarchand Mangaldas, Link Legal and Shardul Amarchand Mangaldas & Co had made presentations before the Department of Investment and Public Asset Management (DIPAM) on 24 September.

Following the presentations, Cyril Amarchand Mangaldas was selected as legal advisor for the initial public offering (IPO).

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DIPAM had first inviting bids from legal advisors on 15 July for the mega LIC IPO and the last date for bidding was 6 August.

However, there was no sufficient response, following which it issued a fresh RFP and set 16 September as last date for bidding.

The government is aiming to come out with LIC's IPO and subsequent listing in the January-March quarter of 2022.

The government is also mulling allowing foreign investors to pick up stakes in country's largest insurer.

As per market regulator's rules, foreign investors are permitted to buy shares in a public offer.

However, since the LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with norms regarding foreign investor participation.

How LIC's IPO sails through remains to be seen as it is crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crore.

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

Invesco Developing Markets Fund, a foreign portfolio investor (FPI) in ZEE, has reiterated that the media company should hold an extraordinary general meeting (EGM) to evict certain directors.

In a letter to company's board, Invesco said,

  • Decisions of material strategic import must follow and not precede actions towards establishment of a proper and independent governance structure as determined by the company's shareholders.

    In this context, and against the backdrop of our EGM requisition, your disclosure of September 22 is symptomatic of the erratic manner in which important and serious decisions have been handled at the company.

Invesco holds a 17.88% stake in ZEE together with its subsidiary OFI Global China Fund and has been an investor in the company for over 10 years.

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Invesco had proposed the removal of non-independent directors and recommended six additional independent directors on the board.

Earlier, it sought removal of CEO and MD Punit Goenka and non-executive directors Ashok Kurien and Manish Chokhani, citing corporate governance issues.

The above move came after ZEE's board approved a mega-merger with Sony Pictures Networks India, a subsidiary of Japan's Sony Corp, to create India's largest media and entertainment firm.

But, for the merger to go through, it would need approval from 75% of its shareholders.

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

Speaking of ZEE, shares of the company have been in focus ever since the shareholder activism and merger news came out.

Over the last 30 days, Zee Entertainment share price is up 85%. Over the last one year, it has gained 67.8%.

To know more, check out the latest shareholding pattern of Zee Entertainment.

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


SGX Nifty Up 165 Points; Indicates Gap-Up Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a positive note today.

At 8:15 am, it was trading up by 165 points, or 0.9% higher at 18,014 levels.

Trends on SGX Nifty indicate a gap-up opening for Indian stock markets.

Asian stock markets got off to a cautious start today amid a jump in oil prices and uncertainty over the Evergrande saga, as the Chinese firm missed a payment on offshore bonds last week, with further payment due this week.

The Hang Seng is trading up by 0.7%, while the Shanghai Composite is trading down by 0.4%. The Nikkei is trading up by 0.4%.

In US stock markets, Wall Street indices ended flat on Friday as markets consolidate after the Federal Reserve outlook on rates and tapering of bond buying.

Treasury bond yields closed at almost 3-month highs hitting 1.45% while the US$ index also gained and closed at 93.24, with oil prices hitting 2-year highs.

The Dow Jones Industrial Average gained 33 points, or 0.1%, the S&P 500 edged 0.2% higher and the Nasdaq Composite ended on a flat note.

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US stock futures are trading on a firm note today with Dow Futures up by 175 points.

The week is packed with US Federal Reserve speeches led by Chair Jerome Powell on Tuesday and Wednesday, with more than a dozen other events on the calendar.

Eyes will also be on US fiscal policy with the House of Representatives due to vote on a US$1 trillion infrastructure bill this week, while a 30 September deadline on funding federal agencies could force the second partial government shutdown in three years.

Gold prices edged higher today as persistent concerns over the fate of debt-laden property giant China Evergrande and its broader impact bolstered the precious metal's safe-haven appeal.

Oil pushed past its July peaks as global output disruptions forced energy companies to pull large amounts of crude out of inventories, while a shortage of natural gas in Europe pushed costs up across the continent.

Back home, PVR and Inox Leisure will be among the top buzzing stocks today.

In his latest video for Fast Profits Daily, India's #1 trader, Vijay Bhambwani shares how you can profit from the alcohol stocks cycle.

You can watch the video here: Profit from the Alcohol Stocks Cycle

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.


Tata & Airbus' Mega Deal, Aditya Birla AMC IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a positive note on Friday.

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

At the closing bell on Friday, 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.

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

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.

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.

At 8:10 am today, the SGX Nifty was trading up by 162 points, or 0.9% higher at 18,011 levels. Indian share markets are headed for a gap-up opening today following the trend on SGX Nifty.

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Gold prices for the latest contract on MCX were trading down by 0.1% at Rs 46,032 per 10 grams at the time of closing stock market hours on Friday.

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:

Top Stocks in Focus Today

Among the buzzing stocks today will be Dilip Buildcon.

Shares of Dilip Buildcon jumped over 8% on the bourses on Friday 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.

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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.

Power sector stocks will also be in focus today.

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.

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.

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Aditya Birla Sun Life AMC IPO Set to Open on 29 September

Aditya Birla Sun Life AMC on Friday said it has fixed a price band of Rs 695-712 a share for its over Rs 27.7 bn initial share sale.

In a virtual press conference, the company said the three-day initial public offering (IPO) will open for subscription on 29 September 2021 and conclude on October 1.

The initial share-sale is entirely an offer for sale, wherein two promoters, Aditya Birla Capital and Sun Life (India) AMC Investments, will divest their stake in the asset management firm.

The IPO of up to 38.8 m equity shares comprises an offer for sale (OFS) of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 36 m equity shares by Sun Life AMC.

The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.5% of the paid-up share capital of Aditya Birla Sun Life AMC.

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

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.

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.

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.