Sensex Gains 460 Points, Nifty Ends Above 18,450; Hindalco and Infosys Rally 5%
Closing

Sensex Gains 460 Points, Nifty Ends Above 18,450; Hindalco and Infosys Rally 5%

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

Benchmark indices extended their winning streak for the seventh straight day, ending at fresh record closing highs, led by gains in index heavyweights Infosys, ICICI Bank and ITC.

Investors shrugged off weakness in other Asian markets even as China's quarterly GDP growth hit a one-year low.

At the closing bell, the BSE Sensex stood higher by 460 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 139 points (up 0.8%).

Hindalco and Infosys were among the top gainers today.

M&M and HCL Technologies, on the other hand, were among the top losers today.

The SGX Nifty was trading at 18,482, up by 127 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 1% and 0.7%, respectively.

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Sectoral indices ended on a mixed note with stocks in the metal sector, power sector and IT sector witnessing most of the buying interest.

Healthcare and telecom stocks, on the other hand, witnessed selling pressure.

Shares of Bata India and Hindustan Aeronautics hit their respective 52-week highs today.

Asian stock markets ended on a mixed note today.

The Hang Seng ended up by 0.3%, while the Shanghai Composite ended down by 0.1%. The Nikkei ended down by 0.2% in today's session.

US stock futures are trading on a firm note today with the Dow Futures trading up by 278 points.

The rupee is trading at 75.34 against the US$.

Gold prices for the latest contract on MCX are trading on a flat note today at Rs 47,212 per 10 grams.

Speaking of stock markets, in his latest video, Rahul Shah talks about why a simple portfolio beat quality bluechips by 2x.

Tune in to the video below to find out more:

In news from the finance sector, PNB Housing Finance was among the top buzzing stocks today.

Shares of PNB Housing Finance were locked at the 5% lower circuit at Rs 607.1 per share on the BSE today in an otherwise strong market, after the housing finance company called-off the Rs 40 bn deal with Carlyle-led group of investors.

The board of PNB Housing Finance decided not to proceed with a preferential issue of shares to investors led by Carlyle after the plan was delayed due to pending legal proceedings.

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The share subscription agreements executed with the proposed allottees have been terminated. Carlyle's Pluto Investments will be initiating the process to withdraw the open offer for PNB Housing made at Rs 403.2 per share.

On 31 May 2021, the board of PNB Housing Finance had approved to raise Rs 40 bn through a preferential issue of equity shares and share warrants to a group of proposed allottees led by entities affiliated to the Carlyle Group Inc.

The board discussed that the proposed preferential issue has been held up for more than 4 months (after already having taken over two years), due to the pending legal proceeding before the securities appellate tribunal (SAT).

There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues, in particular as a third member of the SAT is yet to be appointed. The board further noted that due to the protracted litigation and the continuing interim order of the SAT dated 21 June 2021, there is no clarity on the shareholders' approval for undertaking the preferential issue.

The board's primary objective was to raise capital to support the growth of the company, and the board believes that the current situation is not in the best interests of the company and its stakeholders.

With today's fall, shares of PNB Housing Finance have slipped 34% from 52-week high level of Rs 924 touched on 8 June 2021.

PNB Housing Finance share price ended the day down by 5% on the BSE.

Moving on to news from the retailing sector...

Avenue Supermarts' Profit More Than Doubles in the September Quarter

Shares of Avenue Supermarts, which owns and operates retail chain D-Mart, hit fresh highs during the early trade today after reporting strong results for the second quarter ended September 2021.

However, the stock ended down over 7% amid profit-booking.

Avenue Supermarts on Saturday reported a two-fold increase in its consolidated net profit to Rs 4.2 bn for the second quarter ended September 2021. The company had posted a net profit of Rs 1.2 bn in the July-October quarter a year ago.

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Its revenue from operations was up 46.8% to Rs 77.9 bn during the quarter under review as against Rs 53.1 bn in the same quarter of the last fiscal.

On a standalone basis, Avenue Supermarts' revenue from operations during the quarter was at Rs 76.5 bn, up 46.6%, in comparison to Rs 52.2 bn in the second quarter of 2020-21.

It revised its earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates by around 15%, primarily led by margin improvement, as revenue recovery was largely factored in. This further provides D-Mart with added ammunition to compete.

Avenue Supermarts share price ended the day down by 7.5% 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 Zooms 600 Points, Dow Futures Up by 326 Points
12:30 pm

Sensex Zooms 600 Points, Dow Futures Up by 326 Points

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

The BSE Sensex is trading up by 620 points, up 1%, at 61,926 levels.

Meanwhile, the NSE Nifty is trading up by 193 points.

Hindalco and Tata Motors are among the top gainers today. HCL Technologies and Mahindra & Mahindra are among the top losers today.

The BSE Mid Cap index is trading up by 1.4%.

The BSE Small Cap index is trading up by 1.1%

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

On the other hand, stocks from the healthcare 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 34 points (up 0.2%) while Dow Futures are trading up by 326 points (up 0.9%).

The rupee is trading at 75.28 against the US$.

Gold prices are trading up by 0.1% at Rs 47,255 per 10 grams.

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Gold prices were marginally higher in Indian markets today amid positive global cues. On MCX, gold futures were up 0.1% at Rs 47,265 per 10 grams.  In the previous session, gold had slumped 1.4% or Rs 700 per 10 grams.

In global markets, gold rates today ticked higher as US bond yields retreated. Spot gold rose 0.2% to US$ 1,770.3 per ounce.

US bond yields had jumped sharply on Friday after data showed retail sales advanced in September which bolstered expectations for sooner-than-expected tightening of monetary policy by the US Fed.

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 Indiabulls Real Estate

Shares of Indiabulls Real Estate (IBREL) rose over 7% on the exchanges to hit an all time high, after the company said its sales bookings jumped over two-fold to Rs 8.7 bn during the first six months of the financial year 2021.

The company's sales stood at Rs 3.7 bn in the same period last year.

IBREL also announced the resignation of Sameer Gehlaut as non-executive director and chairman of the company with effect from 31 December 2021.

The resignation of Gehlaut comes amid the proposed merger of IBREL projects with Bengaluru-based Embassy group.

After the conclusion of the merger, Embassy will become the main promoter of the merged entity.

With respect to the merger, IBREL has already got regulatory approvals from the Competition Commission of India (CCI), the NSE, the BSE and the market regulator.

The company has also filed the requisite joint application with the NCLT for approval of the same.

Embassy Group has around a 14% stake in IBREL which will increase to 45% after the merger of both companies.

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Post-merger, the combined entity will have an 80.8 m square feet of launched and planned development potential. The merged entity will have about 30 projects.

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

At the time of writing, Indiabulls Real Estate 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 banking sector...

HDFC Bank Reports 17.6% Jump in Net Profit; Asset Quality Improves Sequentially

HDFC Bank on Saturday reported a 17.6% year on year (YoY) rise in net profit at Rs 88.3 bn for the September 2021 quarter.

The bank had posted a net profit of Rs 75.1 bn in the year-ago quarter. The bank's net interest income (NII), the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 12.1% to Rs 176.8 bn with net interest margin (NIM) at 4.1%.

Provisions and contingencies for the quarter also rose to Rs 39.2 bn compared to Rs 37 bn in the year-ago quarter.

Total provisions for the quarter included Rs 12 bn worth of contingent provisions, the bank said.

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Provisions and contingencies at the end of June 2021 quarter stood at Rs 48.3 bn. The bank's asset quality improved during the quarter as gross non-performing assets (NPAs) came in lower at 1.35% of gross advances compared to 1.47% in the June 2021 quarter and 1.37% in the year-ago quarter.

Excluding NPAs in the agriculture segment, NPAs for the September quarter came in at 1.2%.

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

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in the physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through internet and mobile. The number has gone up to 92% in 2019.

It is a great example of a company which has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long-run.

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


Sensex Surges 500 Points, Nifty Tops 18,500; Metal & Power Stocks Rally
09:30 am

Sensex Surges 500 Points, Nifty Tops 18,500; Metal & Power Stocks Rally

Asian share markets are trading on a negative note today as China's gross domestic product (GDP) grew slower-than-expected.

The Nikkei fell 0.2% while the Hang Seng is trading lower by 0.5%. The Shanghai Composite is down 0.4%.

In US stock markets, Wall Street indices climbed on Friday after Goldman Sachs capped a strong earnings season for big banks, while a surprise rise in retail sales raised optimism about economic recovery.

The Dow Jones Industrial Average jumped 1.1% in its best weekly performance since 25 June 2021. The S&P 500 climbed 0.8% to notch its best week in 2-1/2 months, and the Nasdaq Composite added 0.5%.

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

Market participants will track shares of Craftsman Automation, Route Mobile, and Tata Coffee as these companies are scheduled to announce their September quarter results today.

The BSE Sensex is trading up by 523 points. Meanwhile, the NSE Nifty is trading higher by 149 points.

Tata Steel and Infosys are among the top gainers today. Bajaj Auto, 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 1%, respectively.

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

Shares of Avenue Supermarts and Bajaj Finserv hit their 52-week highs today.

The rupee is trading at 75.20 against the US$.

Gold prices are trading up by 0.2% at Rs 47,305 per 10 grams.

Meanwhile, silver prices are trading up by 0.3% at Rs 63,489 per kg.

Gold edged up today, recouping some losses after a steep sell-off in the previous session as US bond yields and the dollar softened, restoring some of the precious metal's appeal.

Crude oil prices hit new multi-year peaks, continuing their recent surge amid a global energy shortage, with US crude at a fresh seven-year high and Brent at a three-year high.

Speaking of stock markets, in his latest video, Rahul Shah talks about why a simple portfolio beat quality bluechips by 2x.

Tune in to the below video to find out more:

In news from the commodity space, gold imports zoomed to US$ 24 bn during April-September 2021 due to higher demand in the country, according to data from the Commerce Ministry.

Imports of the safe-haven metal were US$ 6.8 bn in the corresponding period last year.

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A significant jump in the gold imports has led to record widening of India's trade deficit to US$ 22.6 bn during September this fiscal as against US$ 2.96 bn in the year-ago period.

Meanwhile, gold exchange-traded funds (ETFs) attracted Rs 4.5 bn in September 2021.

This was sharply higher than the net inflow of Rs 240 m recorded in the previous month. In July, the category saw a net withdrawal of Rs 615 m.

With September's additions, the gold ETF category has received a net inflow of Rs 35.2 bn so far. The segment witnessed just one month of net outflows, which was in July.

Reportedly, the inflow may continue in coming months due to strong demand on the back of festival season.

The latest inflows also helped in pushing the number of folios in the category by over 14% to 2.5 m in September from 2.1 m in the preceding month.

Note that investments into gold ETFs have been witnessing a steady uptick since August 2019.

However, despite these inflows, the assets under management (AUM) of gold ETFs dropped to Rs 163.4 bn at the end of September 2021 from Rs 163.5 bn at August 2021.

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.

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Moving on to stock specific news...

Dixon Technologies is among the top buzzing stocks today.

Dixon Technologies has started manufacturing 5G millimetre waves smartphones which will be the first set of devices in the segment to be exported from India.

The domestic electronics manufacturing firm has set up a manufacturing unit with an annual capacity of 7 m 5G millimetre (mm) phones and is setting up another factory with annual capacity of 30 m smartphones in Noida.

The Orbic Myra 5G UW smartphone, which can operate in high frequency bands, is also the first smartphone that has been partly designed in India, Dixon Technologies executive chairman Sunil Vachani said.

The company has bagged a contract from US-based Orbic which sells smart devices for US-based telecom operators.

The 5G millimetre phone can theoretically provide speed of up to 5 gigabit per second (gbps) on a phone which is over 250 times faster compared to top speed of 4G mobile connection recorded in India.

Reports also suggest that 5G millimetre smartphones have supported speed of around 2 gbps which is around 90 times faster than the top speed recorded by telecom regulator TRAI in India on 4G network.

The company will start exporting this month and is expected to ship 2 m units overseas next year.

Dixon Technologies share price has opened the day up by 3.1%.

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


SGX Nifty Up 75 Points; Indicates Positive Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a positive note today.

At 8:00 am, it was trading up by 75 points, or 0.4% higher at 18,435 levels.

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

Asian stock markets are trading on a mixed note today ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world's second-largest economy even as US companies report strong quarterly earnings.

The Hang Seng and the Shanghai Composite are trading down by 0.6% and 0.7%, respectively. The Nikkei is trading down by 0.3%.

In US stock markets, Wall Street indices climbed on Friday and the main indexes were set for weekly gains after Goldman Sachs capped a strong earnings season for big banks, while a surprise rise in retail sales raised optimism about economic recovery.

The Dow Jones Industrial Average jumped 1.1% in its best weekly performance since 25 June 2021. The S&P 500 climbed 0.8% to notch its best week in 2-1/2 months, and the Nasdaq Composite added 0.5%.

US stock futures are trading on a strong note today with Dow Futures up by 408 points.

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Gold prices edged up today, recouping some losses after a steep sell-off in the previous session as US bond yields and the dollar softened, restoring some of the precious metal's appeal.

Crude oil prices hit their highest in years today as demand continues its recovery from the Covid-19 pandemic, boosted by more custom from power generators turning away from expensive gas and coal to fuel oil and diesel.

Back home, Avenue Supermarts and HDFC Bank will be among the top buzzing stocks today.

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

You can watch the video here: Market linked debentures

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.


WPI Inflation Data, Passenger Vehicle Sales, and Buzzing Stocks Today
Pre-Open

WPI Inflation Data, Passenger Vehicle Sales, and Buzzing Stocks Today

Indian share markets ended on a strong note on Thursday.

Market bulls reigned on the bourses for the sixth consecutive session on Thursday as strong quarter two show by Infosys and Wipro, along with hopes of a better-than-anticipated economic recovery, lifted sentiment.

At the closing bell on Thursday, 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.

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

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

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

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

At 8:00 am today, the SGX Nifty was trading up by 33 points, or 0.2% higher at 18,437 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 up by 0.1% at Rs 47,980 per 10 grams at the time of closing stock market hours on Thursday.

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.

Top Stocks in Focus Today

Among the buzzing stocks today will be auto stocks.

Passenger vehicle wholesales in India witnessed a decline of 41% year on year (YoY) in September as automobile manufacturers struggled to produce adequate units owing to semiconductor shortage, auto industry body SIAM said on Thursday.

Passenger vehicle sales last month stood at 1,60,070 units as compared to 2,72,027 units in the year ago period.

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As per the latest data by Society of Indian Automobile Manufacturers (SIAM), two-wheeler dispatches to dealers also witnessed a dip of 17% at 15,28,472 units, compared to 18,49,546 in September 2020.

Motorcycle dispatches declined 22% last month to 9,48,161 units as against 12,24,117 in the year-ago period.

In the July-September quarter, passenger vehicle wholesales, witnessed a marginal increase of 2% to 7,41,300 units as compared to 7,26,232 units in the same period of last fiscal.

In a statement, SIAM President Kenichi Ayukawa said,

  • Indian automobile industry continues to face new challenges. While on one hand, we are seeing a revival in vehicle demand, on the other hand, shortage of semiconductor chips is causing a major concern for the industry. Many members have curtailed their production plans.

    High raw material prices also continue to be a challenge. The industry is taking all possible measures to mitigate the impact of such supply chain issues and optimise production.

Coupled with the festive season demand, this has led to long waiting time for the customers on popular models of some segments, he added.

Power sector stocks will also be in focus today.

The power crisis in five most-affected states is likely to ease soon as Tata Power restarted its mega power plant at Mundra on Wednesday 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 4.5 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.

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India's WPI Inflation Rises to 10.66% in September

The wholesale price-based inflation eased to 10.66% in September, helped by moderating food prices even as crude petroleum witnessed a spike.

WPI inflation remained in double-digit for the sixth consecutive month. In August, it was 11.39%. In September 2020, inflation was 1.32%.

The high rate of inflation in September 2021 is primarily due to rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared to the same month of the previous year, the Commerce and Industry Ministry said in a statement.

Inflation in food articles eased for the fifth straight month mainly due to easing vegetable prices. Pulses prices continued to spike at 9.42%.

Inflation in the fuel and power basket was 24.91% in September, against 26.09% in the previous month.

The rise in crude petroleum and natural gas prices was 43.92% in September over 40.03% in the previous month.

Steel Demand to Increase Next Year Even as Energy Crisis Looms

According to the World Steel Association, steel demand should climb again next year, even as a deepening energy crisis threatens the global economy's recovery from the pandemic.

Consumption will rise 2.2% to 1,896 million tonnes in 2022, a slower pace than this year's 4.5% increase, the industry group said on Thursday.

The main drivers of growth will be outside China as the country's real estate crisis undermines demand, it said.

The energy crisis and supply-chain bottlenecks pose risks to the recovery, with some European steelmakers being forced to curb output as power costs soar.

World steel association expects the rebound in car production to slow in 2022, with the sector continuing to suffer from a shortage of semiconductors.

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.