Domestic equity benchmarks ended with gains on Tuesday.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty ended Tuesday’s session with gains, partially recovering Monday’s losses. S&P BSE Sensex was up 272 points while the Nifty 50 ended at 11,470. Benchmark indices scaled down from their intraday highs amid a volatile trading session. Bharti Airtel, Asian Paints, and Bajaj Finance were the top gainers on Sensex while ONGC, Axis Bank, and Tech Mahindra were the top drags. Volatility slipped 5% but scaled as high as 23 levels during the week. Nifty Midcap Indices out-performed benchmark indices. Among sectoral indices, Nifty IT, Nifty Private Bank, and Nifty PSU Bank ended with losses.
Hit by the lockdown in the first quarter of the current fiscal year, India’s economy contracted by 23.9%. The gross value added, which captures what accrues to the producer/service provider before a product or service is sold, shrank at an unheard-of rate of 22.8% in the first quarter. While manufacturing, Services, and construction declined, agriculture GVA was up 3.4%. India’s GDP growth figures are one of the worst among nations that have so far released the data.
Highlights
Sensex and Nifty ended Tuesday’s session with gains as they looked to recover losses incurred on Monday. S&P BSE Sensex ended 272 points or 0.71% higher at 38,900 points while the 50-stock Nifty managed to gain 83 points to close at 11,470 points. It was a volatile trading session that saw benchmark indices dance between gains and losses. Stock specific action was visible as Bharti Airtel gained over 6% in the aftermath of the Adjusted Gross Revenue verdict by the Supreme Court. Midcap stocks gained while the Nifty Midcap indices outperformed the benchmarks.
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India’s stocks markets were among the most muted performers in the month of August across major economies, even after getting heavy foreign investment inflows aided by surplus global liquidity. Sensex and Nifty, although sustaining momentum, ended the month with just over 2% gains each. This was relatively muted when compared to other major economies like the US, Japan, South Korea, and even France. BSE Sensex, as well as the 50-stock NSE Nifty are down 5.8% since the beginning of this year, but are up 50% from March lows.
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“Mahindra & Mahindra reported a 16% YoY contraction in automotive sales for August 2020 to 30,426 units. Domestic sales were down by 13% YoY to 29,257 units while exports were down by 54% YoY to 1,169 units. PV sales were up by 1% YoY to 13,651 units while CV sales were up by 4% YoY to 15,299 units led by strong growth in the LCV segment. Three wheeler sales were down by 94% YoY 307 units. The August numbers are a significant improvement over June and July numbers and we expect sales numbers to improve further in September and October led by pent up demand especially from rural areas and inventory push prior to the festive season," said Jyoti Roy , DVP- Equity Strategist, Angel Broking.
Indian rupee continued with positive momentum on the first day of the September month. Even after weaker than expected economic growth number, rebound in August PMI numbers suggest recovery going ahead. The weakness in broad based dollar index, dollar inflows and central banks focus on curbing imported inflation and staying away from dollar buying intervention supporting rupee. Technically, USDINR pair has minor support near 72.50 level and strong support near 72.00 levels while on higher side resistance shifted from 75.50 to 74.50: Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities
While India’s manufacturing and services sectors saw a major contraction, the agriculture sector recorded a growth of 3.4 per cent in the fiscal first quarter. The farm sector is the only sector that remained almost unaffected during the pandemic, and supported the overall economy by providing a sufficient amount of food.
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While Sensex and Nifty were up over 1%, Midcap and Smallcap indices indices on BSE and NSE failed to mirror those gains as they underperformed the benchmark indices. Nifty Midcap 100 and Midcap 50 were up nearly 0.25% each while Nifty Smallcap was trading with losses.
S&P BSE Sensex jumped 533 points on Tuesday as the benchmark indices look to undo the losses incurred yesterday. Bharti Airtel was up 7%, ONGC was down over 3%.
Bharti Airtel shares jumped 6% to become the top Sensex gainer during Tuesday’s trading session post the Supreme Court’s Adjusted Gross Revenue (AGR) dues judgement. On the other hand, Vodafone-Idea, the other major telecom operator that was eagerly awaiting the verdict, entered free fall as the stock tanked 20% to hit the lower circuit. The Apex Court gave telecom companies 10 years to complete their pending dues. Additionally the Supreme Court has asked telcos to pay 10% of their dues by March next year. Vodafone-Idea, the struggling telecom operator saw its share trade at Rs 7.69 per share while Bharti Airtel was up at Rs 546 apiece.
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While Bharti Airtel stocks surged 6% making it the top Sensex gainer on Tuesday after the AGR verdit gave telcos 10 years to make their AGR due payments, Vodafone Idea did not fare well as the stock tanked over 17%.
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The Supreme Court today announced it verdict in the Adjusted Gross Revenue (AGR) dues case, giving telecom operators like Vodafone Idea and Bharti Airtel 10 years time to pay their dues.
Larsen & Toubro’s share price jumped over 2% on Tuesday as investors reacted to the company’s successful strategic divestment of its Electrical & Automation Business to Schneider Electric for Rs 14,000 crore. The completion of the deal over two years after it was announced by the two companies in 2018. According to market participants, this will mark the conclusion of the biggest merger & acquisition deal for Larsen & Toubro (L&T). Shares of the engineering and construction major have surged 35% from the March lows to now trade at Rs 966 per share on the Sensex on Tuesday.
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"Indicating a sharp contraction in growth, the GDP number for Q1 of 20-21, has come at -23.90 %, a deep fall, the worst ever, which is the direct consequence of the pandemic and the lockdown. A fall close to -20 % was more or less expected by a number of market participants. Even with some improvement in the economic variables in the coming three quarters, the growth for the whole year would be around -5 % or slightly higher for the whole year. The probability of this number being revised is quite high given the fact that there have been practical difficulties around data collection and estimation on manufacturing and industries, and consumer prices. Except for agriculture across sectors including services, manufacturing, trade, etc. have shown an unprecedented fall. Whether it is private consumption or capital formation, the numbers are hugely negative and would require more action from the government, though the government’s fiscal position does not leave much room for further action. The core sector numbers too indicate nothing different regarding the state of the economy. A demand or consumption-led recovery is crucial for the economy, and it may require measures by which the disposable income of people is enhanced," said Joseph Thomas, Head of Research - Emkay Wealth Management.
Indian manufacturers signalled a rebound in production volumes and new work in August, according to the latest PMI data. The upturn was led by an improvement in customer demand as client businesses reopened, after lockdown restrictions eased amid the coronavirus disease 2019 (COVID-19). Output and new orders expanded at the fastest paces since February. Meanwhile, job cuts continued into August, extending the current sequence of decline to five months. At 52.0 in August, the headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index rose from 46.0 in July and signalled an improvement in operating conditions across the manufacturing sector following four consecutive months of contraction.
Domestic benchmark indices Sensex and Nifty opened with gains on Tuesday morning, a day after the nears brought their 6-day gaining spree to a screeching halt, but did not hold on for long. S&P BSE Sensex was up dancing between gains and losses after the initial hour of trade while Nifty 50 was still above the 11,400 mark. Sensex and Nifty were dancing between gains and losses as index heavyweights like Reliance Industries and ICICI Bank slipped into the red. IndusInd Bank, Maruti, Asian Paints, and NTPC were some of the best performing stocks on Sensex.
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From today, Securities and Exchange Board of India’s (SEBI) new margin rules come into effect, as the market regulator attempts to increase transparency and safeguard investors. Ironically, analysts are attributing the same rule as partly the reason behind yesterday’s 839-point slump in Sensex from intraday high. Apart from the various challenges that the new margin rules bring, it is also expected to cause a reduction in trading volume on the stock exchanges. The new rules come into effect today, after SEBI refused to extend the implementation deadline yesterday.
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Foreign Institutional Investors (FII) pulled put Rs 3,395 crore on Monday as stock markets saw their worst single day performance since May. Domestic Institutional Investors (DII) on the other hand, bought stocks worth Rs 680 crore.
BSE maintained its upward trajectory in the equity derivatives segment with a new all-time daily turnover record of INR 144,679 crores on August 31, 2020. The previous high was INR 114,263 crores recorded on August 25, 2020. The consistent growth of trading turnover reflects the growing investor appetite of BSE's unique contract design with Monday Expiry. The Sensex 50 index offers participants the ideal equity hedge in a volatile market, with its constituents representing about 58 percent of market capitalization of India's listed universe. The Sensex 50 options contracts offers superior flexibility and an cost efficient hedge for participants than any comparable product in Indian markets.
Nifty futures were trading 78.70 points or 0.69 per cent higher at 11,438.50 on Singaporean Exchange, suggesting a higher opening for BSE Sensex and Nifty 50 on Tuesday. A host of factors such as India GDP numbers, eight core industries output and geopolitical tensions are likely to dent investor sentiment.
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Domestic equity market benchmarks BSE Sensex and Nifty 50 stare at a gap-up opening on Tuesday. In the previous session, headline indices corrected over 2 per cent on the back of geopolitical tensions between China and India. Market participants will react to GDP numbers, where the Indian economy shrank 23.9 per cent during the April-June quarter and eight core industries’ output which contracted 9.6 per cent in July. Besides, the Supreme Court’s verdict AGR judgment, geopolitical tensions, PMI Manufacturing data and August auto sales numbers will be keenly tracked.
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Reliance Industires Ltd has received a nod from the government for the Rs 25,215 crore investment by Brookfield Infra and its partners for Tower Infrastructure Trust.
The pandemic that befell the world almost like a bolt from the blue has expectedly taken a heavy toll on India’s gross domestic product (GDP) — it contracted by a quarter, an unprecedented 23.9% to be precise, in the June quarter. This was on the higher side of analyst estimates of the dip, which varied between 15-26% roughly. In no quarter since India began releasing quarterly GDP data in FY96, the economy shrank – the previous worst quarterly growth figure was 0.2% reported in Q4FY09, following the global financial meltdown. The gross value added (GVA), which basically captures what accrues to the producer/service provider before a product or service is sold, shrank at an unheard-of rate of 22.8% in Q1, as per data put out by the National Statistical Office (NSO).
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