Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended marginally higher on Monday, led by buying in Reliance Industries (RIL), TCS and HDFC. The 30-share Sensex gained 60 points or 0.16 per cent to end at 38,417, while the broader Nifty 50 index settled at 11,373, up 40 points or 0.35 per cent. ITC and Hindustan Unilever were top Sensex gainers, up nearly 2 per cent, followed by TCS, Asian Paints, HDFC and Axis Bank. On the other hand, M&M was the top Sensex laggard, down 3.43 per cent. Bajaj Finance, NTPC, UltraTech Cement, ONGC, Bharti Airtel and IndusInd Bank were the other losers. Most of the sectoral indices settled in the negative territory. Nifty FMCG, Nifty IT and Nifty Media were the only indices that ended in the green.
Happiest Minds Technologies initial public offering (IPO) was oversubscribed within less than three hours from the opening of the window. The IPO saw a massive response from retail investors who subscribed to the issue over 5 times their quota. From the 2,32,59,550 shares that are up for a subscription, bids were received for 2,53,23,020 shares which translated to a 1.09 times subscription rate.
Sensex gained 60 points or 0.16 per cent to end at 38,417, while the broader Nifty 50 index settled at 11,373, up 40 points or 0.35 per cent.
Indian share markets continued to map an upward trajectory in August with BSE Sensex and Nifty 50 rising nearly 3 per cent from the end of July. Research and brokerage firm Emkay Global Financial Services has prepared a list of high conviction large-cap stocks with an ‘overweight’ rating ranging from industry leaders in banking to automobile companies.
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Refinitiv, a providers of financial markets data and infrastructure, has launched REDI EMS, an open and powerful electronic trading platform in India. It is a leading execution management system (EMS) that offers multi-asset trading functionality and comes with access to more than 200 certified execution brokers, many of the major prime and clearing brokers, and more than 650 brokers on the Autex Trade Route service.
Vodafone Idea Ltd.’s top management today broke its silence on the Supreme Court’s decision to grant telecom companies 10 year to pay their adjusted gross revenue dues. The struggling telecom operator said that the outcome was “good” while it stressed on the need to raise tariffs. The comments came as Vodafone Idea today announced a unified brand to mark the completion of Idea Cellular and Vodafone Plc’s integration, two year after the merger was announced. The newly carved out brand ‘Vi’, according to the company, has its eyes set on the future. Earlier, in December last year, Aditya Birla Group chairman Kumar Mangalam Birla had warned that the telco might shut shop if it gets no respite in the AGR dues case. Similar comments were also made by Vodafone’s Nick Read.
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As India’s GDP clocked a record contraction in the first quarter of the current fiscal, businesses and companies took a severe hit too. In order to minimize the losses on the bottom line, the corporations had to resort to cost rationalization across different expense heads during the quarter, said a report by Care Ratings. The income of nearly 2,500 companies fell by 25.7 per cent in Q1, according to CMIE data.
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In the Modi government’s new stimulus package, non-salaried middle class and small businessmen may finally get some relief amid the disruptions in businesses and job conditions. The new fiscal stimulus package will focus more on the group which is not completely poor and not rich, The Indian Express reported citing a government official.
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In the last 4 years, with Jio, RIL has been able to build a “digital layer” on top of the existing “physical layer” of retail shops across electronics, grocery and apparels as well as depth and width of India. We believe next four years, RIL’s focus would be to add a third “layer of commerce” and monetize the existing investments across different formats. Although in near-term we may see some time-correction (given recent out-performance); we find risk-reward favourable from 12-m perspective and maintain Buy. Also, not every dollar RIL is looking to earn will necessarily come from the consumer pocket. RIL is also looking to leverage the users’ digital footprint and earn incremental revenues from digital ads, digital lending and even engagements like play along with IPL, KBC etc: BofA Securities
We are transferring coverage on Motherson Sumi with an Outperform rating and target price of Rs135. We like Motherson’s product mix as well as the track record of consistently delivering on its inorganic strategy. A global auto-recovery, improvement in the performance of greenfield plants and the announcement of the next 5-year plan are key triggers: Macquarie Research
Terming the 23.9 per cent fall in economic growth in June quarter alarming, former Reserve Bank Governor Raghuram Rajan has said bureaucracy should come out of complacency and take meaningful action. The current crisis requires a more thoughtful and active government, he said, adding, unfortunately, after an initial burst of activity, it seems to have retreated into a shell. (PTI)
Allcargo Logistics Ltd board approves delisting proposal and set the floor price at ₹92.58, which is 18.8% discount to its current market price of ₹114.15. Promoter and promoter group of the company will acquire all the fully paid-up equity shares of the company having a face value of ₹2 held by the public shareholders of the Company. As per the last filling, the public holds 29.99% of paid-up equity share capital of the company. Delisting will be a positive development for the Company but the proposed delisting prices is not up to the expectation of public shareholders: Yash Gupta – Equity Research Associate, Angel Broking Ltd
It should be noted that the financial performance of the Company is not consistent over the last three years. Furthermore, in Q1FY21, the Company has reported a sudden surge in its profits and margins. Also, there is a pledge on promoter’s shares amounting to Rs 40 crores. In terms of the valuations, on the higher price band, if we annualize Q1FY21 EPS and attribute it on fully diluted equity post IPO, then asking price is at a P/E of around 12x. If we adjust the tax credit of Rs. 17.9 cr., adj. EPS for Q1FY21 comes to Rs. 8.8. Based on the annualized adjusted EPS of Q1FY21, P/E multiple comes up at 18.9x which is on the higher side: Ashika Institutional Equities
Dixon Technologies share price jumped over 4 per cent to scale a fresh 52-week high of Rs 8,935 apiece on BSE, taking the market capitalisation of the company above Rs 10,000 crore. The stock has been on a gaining spree since past five consecutive trading sessions. The stock has surpassed its previous high of Rs 8,821.85 apiece touched on August 28 this year. The stock has skyrocketed 267 per cent from its 52-week low of Rs 2,433.20, hit in September last year.
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Shares of Lakshmi Vilas Bank (LVB) on Monday gained nearly 5 per cent in early trade after the lender said it plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent. The stock jumped 4.61 per cent to Rs 20.40 on the BSE.
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Struggling telecom operator Vodafone Idea on Monday said that the Supreme Court giving 10 years to telcos to clear past dues is eventually a good outcome but stressed that mobile tariffs need to be raised to give sustainability and returns to companies. At a virtual briefing on Monday, Ravinder Takkar, MD and CEO, Vodafone Idea Limited said the company, in the past, had not shied from raising tariffs, which are under forbearance but insisted that the regulator and the government should take a call on fixing a minimum floor price.
Last week, VIL board approved fund-raising plans of up to Rs 25,000 crore through a combination of equity and debt instruments, to keep the company afloat. (PTI)
Happiest Minds Technologies initial public offering (IPO) was oversubscribed within less than three hours from the opening of the window. The IPO saw massive response from retail investors who subscribed to the issue over 5 times their quota. From the 2,32,59,550 shares that are up for subscription, bids were received for 2,53,23,020 shares which translated to a 1.09 times subscription rate. Happiest Minds Technologies, a IT service and consulting firm, run by Ashok Soota beat the market blues as Sensex and Nifty danced between gains and losses.
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Qualified Institutional Buyers (QIB), were seen bidding for only 8% of the stocks that have been offered to them. QIBs usually enter on the last day of the subscription window. On the other hand, Non-Institutional Investors (NII) bid for 21% of their quota in less than three hours. Large part of the NII demand, for the 63,43,513 shares offered to them, came on the BSE. Retail investors oversubscribed their portion by over 400% taking their bidding to 5.44 times on Monday morning. Retail investors have been offered only 42,29,009 shares.
Vodafone Idea, the cash-strapped telecom company, on Monday launched a new unified brand identity — VI. The move marks the completion of the integration of the two brands. Vodafone and Idea so far were running as independent brands since the merger over two years ago. The new brand VI, to be read as ‘we’, according to the company, is future focused as the company looks to battle Bharti Airtel and Mukesh Ambani’s Reliance Jio.
Mining major Coal India managed to beat street estimates when it announced a 55% drop in net profits last week. The public sector entity declared a consolidated net profit of Rs 2,077 crore at the end of the April-June quarter, down from Rs 4,629 crore the company reported in the same period last year. Apart from beating street estimates the company informed investors that recoveries have been good with shipments rising 9% from the previous year, the first time in six months. Analysts are still upbeat on Coal India expecting coal usage to grow in India and an attractive valuation luring in investors.
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India has overtaken Taiwan to become the fourth-largest forex-reserve holder in the world. The reserve build-up in Q1 FY21 ($27bn) was almost equally split between the RBI’s dollar buying and MtM valuation gains. In Q2 FY21, the rise in forex reserves ($36bn so far) is being driven mainly by the RBI’s forex buying. This is averting large rupee appreciation and keeping domestic liquidity accommodative: Anand Rathi Financial Services
Our deep-dive analysis of BPCL is through the lens of a strategic buyer who will give due consideration to 1) significant capital locked in ongoing projects and thus long-term normalized earnings 2) operational autonomy enabling deep sweating of assets and cost optimization and critically 3) financial autonomy driving superior capital allocation: Emkay Global Financial Services
Vodafone Idea share price rallied 10 per cent to Rs 13.21 apiece on BSE after the telecom major approved a fund-raising plan worth Rs 25,000 crore through share sale and debt. The telecom company also informed investors that it will be making a strategic announcement today.
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We continue to prefer ICICI among large-cap banks as higher provision cover and capital raise provide comfort. Commentary on one-time restructuring and recoveries remain a key monitorable. Among mid-cap banks we like CUBK and Federal Bank as they have a higher share of working capital loans. CUBK has a higher provision cover on moratorium while Federal has a lower moratorium share. We also like the HFCs as a commentary on growth has been positive and ultimate LGD in the HFC space could be much lower: Centrum Broking
At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is comparable to larger mid-sized IT companies. We like the company given its (1) strong presence in digital services, (2) scalable business model with end-to-end capabilities and (3) fast-improving financial performance. Hence, investors can Subscribe to the IPO. Further considering market conditions and bright prospects for IT companies post Covid-era, one may also get listing gains: Motilal Oswal Financial Services
COMEX gold trades moderately higher near $1942/oz after a 2.1% decline last week. Gold fell last week after failing to sustain above the $2000/oz level weighed down by some recovery in US dollar index, slack ETF buying and weaker consumer demand. Gold however bounced back today as weakness in equity markets increased its appeal as an alternative investment. Gold may witness choppy trade as US dollar and US equity market struggle for direction however buying might emerge at lower levels amid persisting challenges to global economy: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Last week Gold prices have corrected by 1.50% and closed at Rs 50,678 levels. Silver prices also corrected sharply by 2.28% and closed at 67,226 levels. In international market Spot gold is trading at $1935 per ounce and silver is trading at $26.99 per ounce levels. This was due to sharp recovery in US Dollar Index on the back of sharp fall in US Jobless claim and positive economic data. The U.S. dollar recovered after hovering near more than a two year low which pushed Gold lower. As of today, traders can go for sell in gold at Rs 51,100 levels with the stop loss of Rs 51,450 levels for the target of 50,200 levels. They can also go for sell in Silver at Rs 68,500 levels, with the stop loss of 69,900 levels and for the target of 65,000 levels. In the Bullion index “Bulldex” traders can also go for sell at 16000 with the stop loss of 16250 and for the target of 15700: Anuj Gupta , DVP- Commodities and Currencies Research, Angel Broking Ltd
At upper price band it is offered at 23.6x FY2020 EPS. Considering the very high exposure to digital services and strong promoter background we expect that the company will continue to grow at a faster pace as compared to similar-sized companies and therefore should command a premium valuation to the peer group. We would therefore recommend investors to SUBSCRIBE to the IPO: Yash Gupta, Equity Research Associate, Angel Broking Ltd
The volatility in the currencies vis-a-vis rupee is likely to remain subdued as US markets are off for the Labor day. Gauging the strength in the Chinese Yuan, weakness in the Dollar and inflows in the domestic market, rupee shall remain supported and the losses arising out of negative sentiments if any could be capped around 73.50 levels. Moreover, the pair is likely to trade within the range of 72.50-73.50 levels awaiting for fresh cues: Amit Pabari, CR Forex Advisors
Indian share markets were trading volatile on Monday, tracking mixed cues from Asian peers. After opening nearly 100 points up, BSE Sensex fell 394 points from day’s high on Monday. While the broader index Nifty 50 breached the crucial 11,300-mark on the downside to trade half a per cent lower.
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The Initial Public Offering (IPO) of Happiest Minds Technologies opened for subscription today, as promoter Ashok Soota looks to raise funds to meet the long term working capital requirements. Ashok Soota also plans to sell part of his stake. The Rs 700 crore issue will include an offer for sale for 35.66 million shares and a fresh issue of Rs 6.6 million shares. The company, Happiest Minds Technologies, will only receive funds from the OFS, which translates to Rs 110 crore. Happiest Minds IPO will close for subscription on September 9.
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RBI FX Reserves rose to a new record high of USD 541.4bn. The Rupee strengthened on break of 73.25 on Friday. We expect the 72.50-73.50 range to hold this week. 72.50 is an extremely crucial support. Developments on the Indo-China border will have to be closely tracked. Any escalation poses upside risks to USDINR. The ECB monetary policy is due on Thursday. It will be interesting to see how serious concern policymakers feel about the recent Euro strength as far as Eurozone economic recovery is taken into consideration: Abhishek Goenka, Founder and CEO, IFA Global
In today’s trade, broader markets underperformed equity benchmarks. S&P BSE MidCap was trading 80 points or 0.54 per cent down at 14,738, while the S&P BSE SmallCap index was ruling at 14,525, down 78 points or 0.53 per cent.
Since gold hit a high of $2,070 in the first week of August, investors have started selling a bit of gold to take profits, especially on the ETF front. This is nothing unusual as the price was overheated after such a rapid increase. If we take holdings of the SPDR gold trust as a proxy for ETF holdings, the fund had lost 1% in the last one month. This is a very small number considering the kind of buildup that has occurred since the start of the current bull run. We believe some more liquidation may take place in the coming days, and the spot price may consolidate in the range of $1,900/oz to $1,990/oz. However, a fall below $1,900/oz cannot be ruled out. For silver, the range could be between $26.30/oz to 28.78/oz: Debajit Saha, Senior Analyst, Precious Metals at Refinitiv
Repco Home Finance shares hit 5 per cent upper circuit at Rs 181.90 apiece after the company reported a net profit of Rs 64 crore for the first quarter.
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HDFC share price fell half a per cent to Rs 1,761 apiece on BSE in Monday’s volatile session. Housing Development Finance Corporation stock is trading at its day’s low.
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M&M shares fell the most, down 1.36 per cent. Kotak Mahindra Bank, HDFC Bank, HCL Tech, Bajaj-Auto, Bharti Airtel and Infosys were among index losers.
Tata Steel was the top gainer, up 1.17 per cent, followed by NTPC, Maruti Suzuki, Sun Pharma, ONGC, Titan Company and Reliance Industries.
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Vodafone Idea shares jumped 10 per cent in early trade to Rs 13.21 apiece on Monday ahead of the company’s strategic announcement. So far, the stock hit day’s low of Rs 12.66 apiece.
Check prices: Vodafone Idea
BSE Sensex was hovering around 38,400, while the broader Nifty 50 was ruling below the crucial 11,400.
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ONGC’s reported Q1 standalone revenue of Rs 130 bn (-51% y-o-y, -39% q-o-q) came in 7% below our/Bloomberg consensus’ estimates, driven by 4% lower oil sales volumes and 6% lower oil sales realisation. However, standalone Ebitda at Rs 59 bn (-61% y-o-y, -31% q-o-q) was 16% above consensus and 63% above our estimate, driven by lower other expenses (-51% q-o-q, -16% y-o-y) owing to lesser provisioning: Nomura
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Nifty futures were trading 60.75 points or 0.53 per cent lower at 11,314.20 in early trade on Monday, suggesting a negative start for BSE Sensex and Nifty 50. Market participants will watch President Ram Nath Kovind and Prime Minister Narendra Modi’s address on the National Education Policy (NEP) 2020 at 10.30 AM through video conference. Besides, developments related to the India-China border issue, trends in COVID-19 cases, along with oil and rupee movement will be tracked.
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