Sensex Ends Above 61,000-Mark, Nifty Tops 18,300; Adani Ports, Wipro & Grasim Rally 5%
Closing

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

After opening firmly at record highs, benchmark indices continued to rally for the sixth straight session.

The early half of the day saw IT stocks spearheading the rally with Infosys and Wipro leading charge. Meanwhile, the second half saw banking and metal stocks adding to gains.

At the closing bell, the BSE Sensex stood higher by 569 points (up 0.9%).

Meanwhile, the NSE Nifty closed higher by 177 points (up 1%).

ITC and HDFC Bank were among the top gainers today.

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

The SGX Nifty was trading at 18,360, up by 186 points, at the time of writing.

Both, the BSE MidCap index and the BSE SmallCap index ended higher by 0.5%.

{inlineads1}

Barring automobile, all sectoral indices ended on a positive note with stocks in the banking sector and metal sector witnessing most of the buying.

Shares of HLE Glascoat and Info Edge hit their respective 52-week highs today.

Asian stock markets ended higher today as investors reckoned on inflation bringing forward rate hikes around the world.

The Shanghai Composite ended on a flat note while the Nikkei closed higher by 1.5%. Hong Kong markets were closed for a holiday.

European stock markets extended gains, boosted by technology and mining stocks, on expectations of a strong earnings season even as investors fretted over higher inflation crimping an economic recovery.

US stock futures are trading on a positive note today with the Dow Futures trading up by 208 points.

The rupee is trading at 75.24 against the US$.

{inlineads2}

Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 47,980 per 10 grams.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani, talks about market linked debentures (MLDs) and why you should consider investing in them, in his latest video for Fast Profits Daily.

In news from the electric vehicles (EV) space, according to data from the Central Electricity Authority of India, nearly 80% of India's coal-fired plants were in the critical stage with stocks that may last less than five days.

The shortage is a result of high demand for electricity which has created a demand supply mismatch. In turn, the question that has emerged is whether the power sector has the capacity to add automobiles to its list of consumers.

Even when EVs become mainstream, the demand for power would only be a fraction of the country's overall capacity.

Note that the shortage comes even after production of coal is at record levels.

Coal India produced nearly 250 m tonnes in the first half of this fiscal, nearly 6% more than last year.

Currently, India has an installed power capacity of 382 Gigawatt (GW) of which thermal power accounts for 234 GW. There is at least 27 GW of fresh thermal power capacity on the anvil in the next 5-6 years.

According to a 2019 report, even in an optimistic scenario of 100% EV sales by 2030, electricity demand from the sector would be to the tune of 97 terawatt-hour (TWh).

In a more realistic scenario where EVs would account for 33% of overall sales, electricity demand would be 37 TWh.

{inlineads3}

As per an article in The Economic Times, the widespread use of EVs would put a different kind of pressure on the national grid with varying and more intense peaks.

In other news from the EV space, businesses in India are seeking government support to meet a target for at least 65% of all new vehicle sales to be electric by 2030.

More than 25 companies including automakers M&M and Volvo, oil giant Shell, and clean mobility startups, want India to set firm targets and frame policies to support the transition to EVs, the World Business Council for Sustainable Development (WBCSD) said today.

We will keep you updated on the latest developments from this space. Stay tuned.

Speaking of EVs, have a look at the chart below which shows the massive opportunity in the two-wheeler EVs.

Here's what lead Smallcap Analyst at Equitymaster, Richa Agarwal wrote about this in a recent edition of Profit Hunter:

  • In the last five years, two-wheeler sales in India were around 2 crore units per year. Now the sector is cyclical and has been in the downturn for some time. So let's consider a moderate 5% growth for the next 10 years.

    By 2030, we are looking at 2-wheeler sales of 3 crore units. Even if one third of this is EV sales, that's 1 crore electric 2-wheelers per year.

    In the last 2 years, average electric 2-wheeler sales were 1.5 lakh units. From 1.5 lakh to 1 crore, that's a 66x opportunity in 2-wheeler EVs.

    This is an annual growth rate of 52% over next 10 years. It's an almost vertical growth opportunity.

As per Richa, this is like a gold rush. But like in any gold rush, the winners will just be a few.

Moving on to stock specific news...

Maruti Suzuki was among the top buzzing stocks today.

Maruti Suzuki has disbursed about 100,000 loans valued at Rs 65 bn in the past four months through Maruti Suzuki Smart Finance, an online platform offering real-time car finance service facility to buyers.

Shashank Srivastava, senior executive director at Maruti Suzuki, said the company has seen a rapid increase in the number of consumers availing financing solutions through the platform in fiscal 2022.

For this service, India's largest carmaker has partnered 15 financiers including HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank, Cholamandalam Finance, AU Small Finance Bank, Mahindra Finance and Kotak Mahindra Prime.

The platform is likely to replace traditional financing service channels for Maruti Suzuki's customers.

As many as 116,000 loans have been sanctioned and 100,000 loans disbursed through the platform in the past few months.

The penetration of loans disbursed through the platform stands at 28% currently, up from 5% in the last financial year.

Nearly 80% of customers at Maruti Suzuki avail of financing solutions while purchasing a vehicle.

The Smart Finance platform was launched for NEXA customers across 30 cities in December last year, and later extended nationally to include consumers purchasing vehicles across the entire NEXA and Arena sales channels from April 2021.

Maruti Suzuki share price ended the day up by 0.2%.

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


Sensex Crosses 61,000, Dow Futures Up by 166 Points
12:30 pm

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

The BSE Sensex is trading up by 394 points, up 0.7%, at 61,131 levels.

Meanwhile, the NSE Nifty is trading up by 132 points.

Wipro and Adani Ports & SEZ are among the top gainers today. Coal India and IndusInd Bank are among the top losers today.

The BSE Mid Cap index is trading up by 0.9%.

The BSE Small Cap index is trading up by 0.8%

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

On the other hand, stocks from the automobile 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 109 points (up 0.7%) while Dow Futures are trading up by 166 points (up 0.5%).

{inlineads1}

The rupee is trading at 75.26 against the US$.

Gold prices are trading flat at Rs 47,935 per 10 grams.

Gold prices in Indian markets edged lower today after rising to near a three-month high in the previous session. On MCX, gold futures were down 0.2% to Rs 47,820.

In global markets, gold was down 0.3% at US$ 1,787 an ounce after a 2% jump overnight. A retreat by the US dollar and a pullback in benchmark US 10-year Treasury yields helped support the precious metal.

Note that because gold is measured in dollars, a weaker dollar means a higher price for the yellow metal.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

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

Moving on to stock-specific news...

Among the buzzing stocks today is Wipro.

Shares of Wipro rose over 8% on the exchanges today after the company's results for the September 2021 quarter exceeded analysts' expectations.

The company's revenue climbed 7.7% quarter on quarter (QoQ) to Rs 196.7 bn, which beat Street's expectations.

{inlineads2}

However, it reported a 9.6% sequential decline in net profit at Rs 29.3 bn. This was still above analysts' expectations. The decline in the bottom line was driven by higher tax payments and a sharp rise in costs.

Wipro said that it saw broad-based growth across all markets, sectors and global business lines. The company's added two more clients in the US$ 100 m plus category and two more in the US$ 50 m plus bracket.

The operating performance of the company was sturdy given that it managed to keep the consolidated operating margin for the IT services segment flat sequentially at 17.8% on an adjusted basis.

Jatin Dalal, chief financial officer at Wipro, said,

  • We sustained our operating margins in the September 2021 quarter in a narrow band even after absorbing the full impact of our recent acquisitions and investing significantly in our business across sales, capabilities and talent.

Wipro said that it expects revenues to grow 2-4% in constant currency terms in the December 2021 quarter.

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

{inlineads3}

At the time of writing, Wipro shares were trading up by 7.7% on the BSE.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani, talks about market linked debentures (MLDs) and why you should consider investing in them, in his latest video for Fast Profits Daily.

Moving on to news from the construction sector...

KEC International Completes 100% Acquisition of Spur Infrastructure

Construction company KEC International has completed the 100% acquisition of Spur Infrastructure for an enterprise value of Rs 620 m.

Spur Infrastructure is now a wholly-owned subsidiary of the company.

Spur Infrastructure is engaged in the setting up of cross country oil & gas pipelines and city gas distribution networks.

In the last three years, the company has had annual revenue in excess of Rs 1 bn, a profitable track record, technical expertise and experienced manpower.

It also has an order book of Rs 6 bn comprising of cross-country pipelines and city gas distribution network projects from marquee customers.

In its latest quarterly results, Spur Infrastructure posted a 34.8% year on year (YoY) fall in net profit at Rs 461.4 m. However, its sales rose 15.1% YoY to Rs 25.4 bn.

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 Opens Higher; Wipro, Mindtree and Infosys Rally Post Q2 Results
09:30 am

Sensex Opens Higher; Wipro, Mindtree and Infosys Rally Post Q2 Results

Asian share markets opened higher today as concerns over US inflation eased, with the latest data broadly in line with market expectations.

The Nikkei advanced 1.5% while the Hang Seng gained 0.3%. The Shanghai Composite is trading higher by 0.2%.

In US stock markets, Wall Street indices settled mostly higher on Wednesday, led by gains in shares of big growth names like Amazon.com and Microsoft.

The Dow Jones ended on a flat note while the Nasdaq Composite gained 0.7%.

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

A total of 21 companies including HCL Technologies, Cyient, and Den Networks are scheduled to announce their results today.

The BSE Sensex is trading up by 371 points. Meanwhile, the NSE Nifty is trading higher by 121 points.

{inlineads1}

Wipro and Infosys are among the top gainers today. Power Grid, on the other hand, is among the top losers today.

The BSE Mid Cap index and the BSE Small Cap index have opened higher by 0.8% and 0.7%, respectively.

All sectoral indices are trading in green with stocks in the IT sector and realty sector witnessing most of the buying.

Shares of Persistent Systems and ITC hit their 52-week highs today.

The rupee is trading at 75.28 against the US$.

Gold prices are trading down by 0.2% at Rs 47,805 per 10 grams.

Meanwhile, silver prices are trading down by 0.6% at Rs 62,530 per kg.

Crude oil prices rose today, reversing previous losses, on expectations that high natural gas prices as winter approaches may drive a switch to oil to meet heating demand needs.

Speaking of stock markets, in his latest video, Aditya Vora talks about how to pick multibagger stocks by spotting emerging trends.

Tune in to the video below to find out more:

In news from the energy sector, Reliance Industries is among the top buzzing stocks today.

Reliance Industries on Wednesday said differences between Zee Entertainment's managing director Punit Goenka and Invesco over how the Goenka family would raise its stake in the broadcaster, led to a collapse in merger talks with Reliance's media properties.

Reliance Industries had proposed to merge its media properties with Zee in February after Invesco helped arrange discussions between Goenka and representatives.

{inlineads2}

Reliance said that it regretted being dragged into a dispute between Zee and the US investment firm.

The statement came after Invesco said Reliance had approached Zee for a merger.

A day earlier, Zee said Goenka rejected a deal proposed by Invesco to merge Zee Entertainment with entities owned by an unnamed "large" Indian strategic group.

All these statements have come amid a tussle between Invesco and Zee's founding family. Invesco is seeking to recast the board of Zee while Zee has challenged Invesco's attempt to restructure the board in courts.

Reliance Industries share price has opened the day up by 0.4%.

Moving on to news from the power sector, the power crisis in five most-affected states is likely to ease soon as Tata Power restarted its mega power plant at Mundra yesterday after Punjab and Gujarat agreed to pay actual costs.

Reports state that other states are likely to follow.

The Gujarat government agreed to buy 1,800 MW power from Tata Power's ultra-mega power project at Rs 4.50 per unit-higher than tariff agreed in its executed contract-for four weeks, a government official said.

According to sources, Rajasthan, Maharashtra and Haryana, beneficiaries of Tata Power's 4,000 MW project and Adani Power's 3,300 MW capacity, have also been negotiating with the companies over supply at actual cost on temporary basis.

The states have been buying the power at Rs 13-16 per unit.

In response to a query, Tata Power's executive told that it started one of its five 800 MW units at Mundra on Wednesday evening to supply power to Gujarat and Punjab.

The move is likely to lower spot power prices immediately while easing pressure on domestic coal, whose supplies have also started to improve.

{inlineads3}

Tata Power share price has opened the day up by 2.4%.

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

chart

Stock of the Tata group company has surged a massive 318% with the majority of gains coming in the past one month alone.

Yesterday, Tata group companies were on a roll after Tata Motors announced fresh EV funding. All of the 21 group companies ended on a positive note.

Earlier this week, co-head of Research at Equitymaster, Rahul Shah analysed the stock of Tata Power and whether it is time to switch to another stock after Tata Power's huge run up.

You can read the entire editorial here: Is it Time to Switch from Tata Power to NTPC?

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 Up 77 Points, India's Retail Inflation, Infosys Quarterly Performance, and Buzzing Stocks Today
Pre-Open

India

Indian share markets ended on a strong note yesterday.

Benchmark indices extended their record-breaking rally into fifth straight session as macroeconomic tailwinds put stocks in top gear.

India's retail inflation eased again in September, falling to a five-month low of 4.35%, while the Index of Industrial Production (IIP) rose to 11.9% YoY in August.

That apart, IMF's GDP forecast, which pegs India's growth at 9.5% in 2021 and at 8.5% in 2022, came as another shot in the arm for market bulls.

At the closing bell yesterday, the BSE Sensex stood higher by 453 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 170 points (up 0.9%).

Tata Motors and Mahindra & Mahindra were among the top gainers.

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

The BSE Mid Cap index and the BSE Small Cap index ended up by 1.6% and 0.6%, respectively.

{inlineads1}

Sectoral indices ended on a positive note with stocks in the auto sector and power sector witnessing buying interest.

Shares of V-Mart Retail and Tata Chemicals hit their respective 52-week highs.

At 8:10 am today, the SGX Nifty was trading up by 77 points, or 0.4% higher at 18,255 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading up by 0.3% at Rs 47,350 per 10 grams at the time of closing stock market hours yesterday.

Speaking of markets in general, Brijesh Bhatia, Research Analyst at Fast Profits Report, shares his views on the cryptocurrencies - Bitcoin and Ethereum, 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 Infosys.

IT giant Infosys reported a 12% year on year (YoY) rise in consolidated net profit at Rs 54.2 bn for the September quarter. It was Rs 48.5 bn in the year-ago period.

On a sequential basis, Infosys profit grew by a marginal 4.3% from Rs 52 bn in the June quarter.

Its consolidated revenue from operations rose 20% to Rs 296 bn against Rs 245.7 bn reported in the September quarter of last year.

{inlineads2}

The company has revised the revenue guidance for the financial year 2022 to 16.5%-17.5%, but retained the margin guidance at 22%-24%.

The board has also approved an interim dividend of Rs 15 per equity share.

Commenting on the results, Salil Parekh, CEO and MD of Wipro said,

  • Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings.

    As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys CobaltTM, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.

Telecom sector stocks will also be in focus today.

India is set to receive an investment of about Rs 33 bn from 31 domestic and multinational companies over a period of four years under the ambitious production-linked incentive (PLI) scheme.

This will likely employ as many as 40,000 individuals in the telecom sector.

Following the incentive package, proposals from as many as 31 companies that included 16 micro, small and medium enterprises (MSME), seven multinationals and eight domestic players have been approved by the telecom department (DoT).

Multinational companies include Nokia Solutions and Networks, Foxconn Technology, Flextronics Technologies, Commscope and Jabil Circuit.

In addition, HFCL, Tejas Networks, VVDN Technologies, Dixon Electro Appliances, and state-run ITI were among homegrown companies declared eligible under the scheme.

The scheme for the telecom sector includes manufacturing of transmission equipment, 4G and 5G radio access network and wireless equipment, customer premise equipment (CPE), access devices, routers and switches.

In April 2021, the government had launched a program with an outlay of Rs 122 bn to promote networking equipment by incentivizing incremental investments by domestic and foreign companies.

India's Retail Inflation Drops to 5-Month Low in September

India's retail inflation fell to a five-month low of 4.35% in September from 5.3% in August as food inflation declined sharply, according to the data released by the government on Tuesday.

Food inflation is on a continuous decline and further eased to 0.68% in September from 3.11% in August.

Inflation, as defined by the consumer price index (CPI) stayed within the Reserve Bank of India's (RBI) tolerance band of 2%-6% for the third consecutive month.

Inflation in the fuel and light category remained elevated at 13.63%.

{inlineads3}

The Central bank in its latest monetary policy meeting lowered the inflation forecast at 5.3% for the current financial year from an earlier estimate of 5.7%.

Meanwhile, the index of industrial production (IIP) for the month of August surged 11.9%, showed data by ministry of statistics and programme implementation (MoSPI). IIP grew 11.5% in the month of July.

The mining output during the August month grew by 23.6%, while manufacturing sector surged 9.7%.

Meanwhile, the electricity generation in August grew 16%. Industrial production has been surging for the past few months mainly due to low-base of last year.

Indian Airline Stocks Soar as Government Allows Full Flight Capacity

Shares of Indian airline operators jumped yesterday after the country's civil aviation ministry allowed domestic flights to fly at full capacity from 18 October 2021, lifting pandemic-led restrictions ahead of the festive season.

InterGlobe Aviation, which runs India's largest airline IndiGo, and SpiceJet rose as much as 4.8% and 5.9%, respectively, to their highest levels since mid-September.

India's aviation industry has been among the worst hit by the Covid-19 pandemic, with airlines losing billions of dollars since operations were halted or restricted since 2020. With Covid-19 cases falling and vaccination rates increasing, India has started easing travel restrictions over the past few months.

Passenger growth jumped 136.6% in August from a year earlier after the government relaxed some curbs, regulatory data showed.

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.