Sensex Sheds 410 Points, Nifty Ends Below 17,750; Oil & Gas and Power Stocks Outperform
Closing

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

After a sharp selling pressure hit the benchmark indices in afternoon session, pushing them over 1% lower, recovery was visible as investors lapped up stocks at lower levels.

Negative global market cues and profit taking pushed both Sensex and Nifty lower for the first time in four days.

Rise in US bond yield and crude oil price along with the Chinese crisis acted as key headwinds to the ongoing rally in the global market.

At the closing bell, the BSE Sensex stood lower by 400 points (down 0.7%).

Meanwhile, the NSE Nifty closed lower by 107 points (down 0.6%).

Power Grid Corp and Coal India were among the top gainers today.

Bharti Airtel and Tech Mahindra, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,769, down by 88 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended down by 0.7% and 0.6%, respectively.

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

Oil & gas and power stocks, on the other hand, witnessed buying interest.

Shares of Tejas Networks and JSW Energy hit their respective 52-week highs today.

Asian stock markets ended on a mixed note today.

The Hang Seng and the Shanghai Composite ended the day up by 1.2% and 0.5%, respectively. The Nikkei ended down by 0.2% in today's session.

US stock futures are trading on a negative note today with the Dow Futures trading down by 193 points.

The rupee is trading at 74.04 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.4% at Rs 45,870 per 10 grams.

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, NTPC was among the top buzzing stocks today.

Shares of state-owned electric utilities company NTPC registered a fresh 52-week high at Rs 133.6, up 4% on the BSE today after the company confirmed the winning of 1.9 gigawatt (GW) solar projects under central public sector undertaking (CPSU) scheme.

The stock surpassed its previous high of Rs 127 hit on 24 September 2021. In past one month, the stock has rallied 16%.

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NTPC has won 1.9 GW in the auction of CPSU Scheme-II, Tranche-III of 5 GW. However, company has no material information to add to above mentioned news item which is in the normal course of business of the company.

Indian power sector is evolving at a fast pace and the power demand is increasing rapidly. India recently witnessed all-time high peak demand of 200.6 GW and energy met of 4,508 megaunits (Mus) in a day on 7 July 2021. The country also registered a generation growth of 17.17% in the quarter one of 2022.

The growth in demand augurs well for the company. These numbers coupled with 'Atmanirbhar Bharat' initiative indicate that there is huge potential for growth in the power sector going forward.

NTPC is a market leader in power generation, supplying around 23% of the country's electricity supply and thus plays a key role in India's economic activity.

NTPC share price ended the day up by 3.5% 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 telecom sector...

Tejas Networks Hits 5% Upper Circuit for 4th Day on Order Win from Airtel

Shares of Tejas Networks were locked in the upper circuit of 5% for the fourth straight session today at Rs 480.1 on BSE after Bharti Airtel selected the company for optical network expansion.

The counter was trading at its all-time high level and has rallied 22% during the period.

Tejas Networks on Thursday, 23 September 2021, announced that it has been selected by Bharti Airtel (Airtel) to enhance its optical network capacity in key metropolitan markets.

Tejas will supply, install and support its state-of-the-art TJ1600 DWDM/OTN products for extending Airtel's optical networks towards the edge, supporting 5G backhaul, B2B services and broadband applications.

The enhanced capacity will enable Airtel to deliver a superior experience to its customers as data consumption in India grows rapidly.

Tejas Networks designs, develops and sells high-performance networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries.

Tejas Networks share price ended the day up by 5% on the BSE.

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


Sensex Tumbles Over 500 Points, Dow Futures Up by 26 Points
12:30 pm

Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 583 points, down 1%, at 59,494 levels.

Meanwhile, the NSE Nifty is trading down 155 points.

Power Grid Corporation of India and Coal India are among the top gainers today. Bharti Airtel and Divi's Lab are among the top losers today.

The BSE Mid Cap index is trading down by 1%

The BSE Small Cap index is trading down by 0.8%.

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

On the other hand, stocks from the power sector are witnessing most of the buying interest.

US stock futures are trading mixed today.

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Nasdaq Futures are trading down by 99 points (down 0.6%) while Dow Futures are trading up by 26 points (up 0.1%).

The rupee is trading at 74.01 against the US$.

Gold prices are trading down by 0.2% at Rs 45,965 per 10 grams.

Gold prices eased in Indian markets today, hurt by a stronger dollar and rising US Treasury yields, while investors awaited more cues from Federal Reserve officials on the central bank's monetary policy shift.

On MCX, October gold contracts were trading higher by 0.4% at Rs 46,162 for 10 grams. September silver futures were up by 1% at Rs 60,578 a kilogram.

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 Gujarat State Fertilizers and Chemicals.

Shares of Gujarat State Fertilizers and Chemicals (GSFC) rose over 4% on the exchanges today after the Directorate General of Trade Remedies (DGTR) recommended anti-dumping duty on Caprolactam (used in nylon-making) from the European Union, Korea, Russia and Thailand.

The Gujarat-based firm had earlier filed an application for anti-dumping duty on Caprolactam as cheap imports by some countries were disrupting trade for domestic players.

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Note that anti-dumping duty is a tariff imposed on imports from other countries that export products at a cheaper value thereby disrupting trade in the domestic market.

To ensure a level playing field in the domestic market, the government imposes anti-dumping duty on foreign imports when it believes that the goods are being dumped through the low pricing in the domestic market.

The duty is imposed to protect local businesses and markets from unfair competition.The imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

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

At the time of writing, Gujarat State Fertilizers shares were trading up by 3% on the BSE.

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 banking sector...

RBI Imposes Rs 20 m Penalty on RBL Bank 

The Reserve Bank of India (RBI) on 27 September 2021 imposed a penalty of Rs 20 m on RBL Bank

for breaching deposit, board composition norms.

An examination carried out by the central bank showed that the private lender was non-compliant in opening five savings deposit accounts for a co-operative bank.

It conducted a Statutory Inspection for Supervisory Evaluation (ISE) which took into the account the lender's financial position as on March 31, 2019.

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In a statement, the RBI said,

  • The examination of the Risk Assessment Report and Inspection Report and related correspondence in the matter, revealed, contravention of directions and non-compliance with opening of five savings deposit accounts in the name of a co-operative bank and failure to comply with the provisions of section 10A(2)(b) of the Act relating to composition of board of directors.

The RBI said it had also issued a notice to the bank asking it to explain why a penalty should not be imposed on it.

After considering the bank's reply to the show cause notice (oral submissions were made during the personal hearing and examination of additional submissions made by the bank) RBI came to the conclusion that contravention warranted imposition of monetary penalty on the bank.

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

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 Opens Flat; HCL Tech, Infosys and Cipla Among Top Losers
09:30 am

Asian share markets are trading on a mixed note as investors continued to fret over China Evergrande Group's unsolved debt crisis and eyed the potential impact of a widening power shortage in China.

The Hang Seng is up 1.3% while the Nikkei is trading lower by 0.4%.

In US stock markets, Wall Street indices ended on a mixed note as markets weighed the risk that congressional gridlock could lead to a US government shutdown.

The Dow Jones Industrial Average ended on a flat note while the Nasdaq fell 0.5%.

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

The BSE Sensex is trading down by 78 points. Meanwhile, the NSE Nifty is trading lower by 13 points.

SBI and UltraTech Cement are among the top gainers today. HCL Tech, on the other hand, is among the top losers today.

Both, the BSE Mid Cap index and the BSE Small Cap index have opened on a flat note.

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Sectoral indices are trading mixed with stocks in the FMCG sector and oil & gas sector witnessing buying interest.

IT stocks and realty stocks, on the other hand, are trading in red.

Shares of Tejas Networks and Allcargo Logistics hit their 52-week highs today.

The rupee is trading at 73.83 against the US$.

Crude oil priced eased today after a five-day rally as investors took profits on fears that higher prices may weaken fuel demand.

Gold prices are trading down by 0.2% at Rs 45,998 per 10 grams.

Meanwhile, silver prices are trading down by 0.1% at Rs 60,500 per kg.

Gold eased today, hurt by a stronger dollar and rising US Treasury yields, while investors awaited more cues from Federal Reserve officials on the central bank's monetary policy shift.

While gold is often considered a hedge against higher inflation, a rate hike would increase the opportunity cost of holding gold, which pays no interest.

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.

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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 textile sector, Raymond is among the top buzzing stocks today.

On Monday, Raymond announced an organisational restructuring plan which will see its fast-fashion business consolidating with the parent company and the auto components and tools and hardware businesses merging into its engineering division.

Meanwhile, its nascent real estate division will be made a wholly-owned subsidiary of the company.

The restructuring plan is aimed at monetising its assets, cutting debt and improving operational synergies.

In a statement, chairperson Gautam Singhania said,

  • We are consolidating the business to explore all options available to us for monetization, which will enable deleveraging leading to value creation.

Back in November 2019, the company had announced the demerger of its apparel business held under Raymond Apparel.

The demerger scheme has been withdrawn and the lifestyle business will be transferred to Raymond to streamline the group's B2C businesses.

Raymond share price has opened the day up by 4%.

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Moving on to news from the automobile sector, India's largest PV maker Maruti Suzuki has told its component suppliers to be ready to produce 160,000-180,000 cars and SUVs in October, as it is making arrangements to secure supply of semiconductor chipsets through multiple channels.

If Maruti does manage to meet this target, the October output would be 60-80% higher compared with September, and just about 5% short of the numbers a year earlier.

Due to global shortage of semiconductors, Maruti has been forced to limit production this month to around 100,000 units.

Reports state that the company's ability to source chips may have improved with an easing Covid-19 situation in Malaysia. The Southeast Asian country's chip manufacturing facilities are now working for seven days a week in three shifts.

About two-thirds of the targeted output are likely to be managed out of Maruti Suzuki's own facilities in the national capital region. The remaining will be sourced from Suzuki Motor Gujarat, another Indian unit of parent Suzuki Motor of Japan.

However, according to industry insiders, there's no guarantee that Maruti will meet the target.

They say that the guidance was probably meant to keep the vendor network ready in case the chipset availability improved.

The company is also urging vendors to prepare for an output of over half a million in the October-December quarter. That suggests production growth of 7.5% from a year earlier in the crucial festive season.

Maruti Suzuki share price has opened the day up by 0.3%.

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


SGX Nifty Trades Flat, SJVN's Solar Power Project, LIC IPO Update, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a flat note yesterday.

At the closing bell yesterday, 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.

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

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.

At 7:30 am today, the SGX Nifty was trading up by 18 points, or 0.1% higher at 17,874 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 0.1% at Rs 45,960 per 10 grams at the time of closing stock market hours yesterday.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani shares how 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:

Top Stocks in Focus Today

Among the buzzing stocks today will be KPR Mill.

Shares of KPR Mill rallied 9% on the BSE to hit an all-time high yesterday 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 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.

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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.

SJVN share price will also be in focus 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.

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.
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DIPAM Shortlists Cyril Amarchand Mangaldas as Legal Advisor for LIC IPO

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).

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.

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.