Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended in red as bears took over. BSE Sensex ended 215 points or 0.37 per cent down at 57,338, while NSE’s Nifty lost 56 points or 0.33 per cent to settle at 17,076. Asian Paints, Nestle India, Axis Bank, Titan Company, Dr.Reddy’s Laboratories, L7T, Bajaj-Auto and IndusInd Bank were among top BSE Sensex gainers. On the flip side, M&M, Tata Steel, Bajaj Finserv, Tata Consultancy Servics (TCS), Housing Development Finance Corporation (HDFC), Infosys, HCL tech, UltraTech Cement were the top index laggards. Nifty sectoral indices mostly ended in green, except for Nifty Financial Services, Nifty IT, Nifty Metal and Nifty Pharma indices. Bank Nifty gained 0,4 per cent to settle at 36,574.30
BSE Sensex ended 215 points or 0.37 per cent down at 57,338, while NSE’s Nifty lost 56 points or 0.33 per cent to settle at 17,076 levels
Credit and Finance for MSMEs: Bank lending to the micro and small enterprise (MSE) sector, which is among the priority sectors in India, has shown a positive year-on-year (YoY) growth in July amid ease in Covid related restrictions for businesses after three months of negative YoY credit growth. Credit deployment by banks to MSEs in July posted a 0.2 per cent growth at Rs 10.99 lakh crore from Rs 10.96 lakh crore in July last year, showed Reserve Bank of India’s (RBI) data
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BSE Sensex fell nearly 250 points or 0.42 per cent to 57,308, while NSE’s Nifty gave up 17,100 level
Sensex still down 140 points to 57,412, while the Nifty 50 index was ruling at 17,095, down 0.21 per cent
CBDT has a provided mechanism with respect to calculation of interest on “taxable contribution” and “non- taxable contribution” to PF and RPF by inserting Rule 9D. By way of an explanation, CBDT has defined taxable and non-taxable contribution very clearly. Further, interest on contribution made till 31 March 2021 (non-taxable contribution) is exempt from tax. With effect from 1 April 2021, interest on taxable contribution is chargeable to tax. In nutshell, the rule provides much-needed clarity with respect to taxability of interest on contribution made to PF and RPF above the prescribed threshold till 31 March 2021.
~ Mitesh Chauhan, Partner, Economic Laws Practice
Ami Organics’ Rs 570-crore IPO has been subscribed 1.37 times so far on the first day of the bidding. Investors have put in bids for 89.23 lakh equity shares against 65.42 lakh shares on offer. On Wednesday, the grey market premium in Ami Organics surged to Rs 155 from Rs 122. Ami Organics shares were seen trading at Rs 765 apiece, a premium of 25.4 per cent, over the upper end of IPO price band, according to the people who deal in unlisted shares of the companies.
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GST collection, after posting above Rs 1 lakh crore mark for nine months in a row, dropped below Rs 1 lakh crore in June 2021 due to the second wave of covid. With the easing out of COVID restrictions, GST collection for July and August 2021 have again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers have also been contributing to the enhanced GST collections. The robust GST revenues are likely to continue in the coming months too.
The gross GST revenue collected in the month of August 2021 is Rs 1,12,020 crore of which CGST is Rs 20,522 crore, SGST is Rs 26,605 crore, IGST is Rs 56,247 crore (including Rs 26,884 crore collected on import of goods) and Cess is Rs 8,646 crore (including Rs 646 crore collected on import of goods)
Rs 1,12,020 crore of gross GST revenue was collected in August. The revenues for the month of August 2021 are 30% higher than the GST revenues in the same month last year
Robinhood Markets’ share price has tanked a little over 5% in two trading sessions so far this week, as investors fear comments by the Securities and Exchange Commission (SEC) may result in the trading platform losing revenue. Robinhood share price nose-dived 6.9% on Monday before recovering marginally on Tuesday. SEC Chairman Gary Gensler told Barron’s that payment for order flow has “an inherent conflict of interest”. Gary Gensler further said a complete ban of the controversial payment for order flow (PFOF) practice is “on the table”. The recently listed Robinhood Markets was trading at $44.32 per share at the closing bell on Wall Street. Robinhood made its stock market debut a month ago.
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HDFC (Housing Development Finance Corporation), Infosys, TCS (Tata Consultancy Services, Tata Steel contributed the most to the indices’ loss
Indian benchmark had start today in positive note hit fresh highs of 17228. Sentiment in the Indian market remained positive with the market. In global markets, traders are evaluating the resilience of global recovery to delta variant and the outlook for central bank stimulus package. Our research suggests that 17200-17300 is a crucial overhead resistance, if markets breaches the resistance level, we can expect the market to gain momentum, leading to an upside projection till 17450-17500. Gaurav Garg, Head of Research CapitalVia Global Research
The Education Sector is one of the worst affected sectors due to the outbreak of the Covid-19 Pandemic. The closure of education institutions, adoption of work from home by offices, muted demand for printing of newspapers among others disturbed the consumption of paper & paper products. However we are highly bullish on this sector in long run due to increasing literacy levels, growth in print media (particularly in the vernacular languages), higher government spending on the education sector. Also, there is a buzz in these sectors with the reopening of Schools & Colleges. Our top picks from these sectors are NIIT, JK Papers & Orient Papers. Rahul Sharma, Co-Founder, Equity99
GST collection in August was above Rs 1 lakh crore mark once again. GST collections came in at Rs 1,12,020 crore in August, up 30% from the year-ago period, the Ministry of Finance said.
The country received 24 per cent less rainfall than normal in August, belying the IMD’s predictions for the month, but rainfall is expected to be above normal in September. Above normal rainfall to normal rainfall is likely over many parts of central India in September, India Meteorological Department (IMD) Director General Mrutunjay Mohapatra said on Wednesday.
Domestic equity markets have surged higher during the last few trading sessions with benchmark indices hitting fresh all-time highs repeatedly. Sensex is well above 57,400 while the NSE Nifty is placed comfortably above 17,100 at this juncture. With stock markets at all-time highs, some analysts have been suggesting a stock-specific approach as upside may be limited from here on. Technical analysts at ICIC Direct have picked two stocks with strong support on the charts, which they believe can help investors pocket strong returns over the next three months. These include aviation giant InterGlobe Aviation and luggage manufacturer Safari Industries.
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Company is bringing the issue at price band of Rs 522-531 per share at p/e multiple of 64x on FY21 PAT basis. We like integrated business model of company due to which company has posted superior financial performance. Company’s OPBDIT margin ranked second among other major diagnostics along with negative working capital and high cash flow generation leading to strong net cash position. Also company’s strategy of expanding in Telangana and Andhra Pradesh which are expected to grow at CAGR of 12% to 13% by 2023
will be next growth driver for company. Hence, looking after all, we recommend “Subscribe” on issue. HEM Securities
At the higher end of the price band, Ami Organics is priced at a PE ratio of ~41 times FY21 EPS (on a fully diluted on post-issue basis). This is lower as compared to peers such as Aarti Industries (56 times), Vinati Organics (66 times). While Ami Organics has reported higher RoNW numbers than these peers, the sustainability of superior financial performance remains to be seen. However, the issue appears to be fully priced as compared to the industry average (~46 times). INDMoney
Bajaj Auto reported total monthly sales of 3,73,270 units for Jun’21, up by 1.1% MoM led by a good 3.2% MoM increase in domestic sales. Within Domestic, motorcycles grew at 1.1% MoM while Domestic CVs (3Ws) grew 32.5% MoM. Exports at -0.6% MoM were pulled down by a 26% MoM decline in export 3Ws while motorcycles exports were up 3.4% MoM. Overall we believe that the domestic motorcycle growth numbers are in line with expectations. Bajaj is well placed in terms of strong exports momentum and domestic growth on account of new launches. Milan Desai, Lead Equity Analyst, Angel Broking
17300 is an immediate resistance level while 17500 will be the next psychological hurdle. On the downside, 17000 has become immediate and strong support where only a move below 17000 can lead to some short weakness towards 16700 level. Santosh Meena, Head of Research, Swastika Investmart
Nifty is in strong bullish momentum but some of the momentum indicators are indicating an overbought territory and PCR is trading at 1.66 which is also a little overbought area that may cause some consolidation or profit booking at some point but it is always advisable to remain with momentum until the market shows any sign of weakness because the market may remain overbought for some more time. Santosh Meena, Head of Research, Swastika Investmart
GDP growth recorded at 20.1% for Q1FY22, was largely in-line with expectations of 18-22%. However, the double digit growth is slightly deceptive given the low base effect when the economy had contracted by 24.4% in the corresponding quarter last year. Visibility of revival in consumer demand increases with household consumption up by 19%, compared to contraction in FY21. Pick-up in construction by 68% also shows signs of green shoots. Though the general traction is still below pre-Covid levels, the severity of lockdowns is clearly lower this year compared to last year. Naveen Kulkarni, Chief Investment Officer, Axis Securities
Asian Paints, Axis Bank, Nestle India, Hindustan Unilever Ltd (HUL), Dr. Reddy’s were among top BSE Sensex gainers
Tata Steel was top Sensex dragger, along with TCS, Bajaj Finserv, Housing Development Finance, Infosys, Maruti Suzuki
BSE Sensex tumbled 641 points from record high to 57,919, while the Nifty 50 index gave up 17,100 in noon deals
MapmyIndia has filed a draft red herring prospectus (DRHP) with capital market regulator SEBI, to launch an IPO. The public issue is entirely an offer-for-sale (OFS) of up to 75.47 lakh shares by selling shareholders. The OFS comprises sale of up to 30.70 lakh equity shares by Rashmi Verma, up to 20.26 lakh equity shares by Qualcomm Asia Pacific Pte Ltd and up to 10.27 lakh equity shares by Zenrin Co Ltd. MapMyIndia, also known as CE Info Systems, is backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin.
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Registering 52.3 in August, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) pointed to an improvement in overall operating conditions for the second straight month.
Cyril Amarchand Mangaldas advised CarTrade Tech Limited (CarTrade) on Initial Public Offer (IPO) of the Company. This is the first IPO in the Indian auto E-commerce space. CarTrade, a multi-channel auto platform with coverage and presence across vehicle types and value-added services, is the only profitable automotive digital platform in India as on date and they are backed by marquee institutional investors including Warburg Pincus, Temasek, JP Morgan, and March Capital. The Capital Markets Practice of Cyril Amarchand Mangaldas advised CarTrade on the Transaction. The transaction team was led by Yash Ashar, Partner & Head – Capital Markets; Vijay Parthasarathi, Partner; with support from Janhavi Manohar, Principal Associate; Tanvi Kini, Senior Associate; Chinar Gupta, Associate; and Sanyukta Saraf, Associate.
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading flat in India on Wednesday, following global rates as investors awaited a key US jobs report. On Multi Commodity Exchange, gold October futures were trading flat with a negative bias at Rs 47,112 per 10 gram, as against the last close of Rs 47,120. Silver December futures were ruling at Rs 63,171 per kg, down Rs 195 or 0.31 per cent. In the previous session, silver futures ended at Rs 63,366.
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Our growth estimate for full fiscal year FY22 is at 7.7% on-year basis. The April to July govt tax and expenditure numbers released today show that the govt tax revenue is booming, but the expenditures are subdued. The govt tax revenue has gone up by 161% in the April-July period yoy, but total expenditure is actually contracted by 4.7% yoy in the same period. In absolute terms, even when compared to pre-pandemic FY20, net tax revenue is up Rs. 1.91 tr in April-July 2021 vs April-July 2019, but expenditure is up only Rs. 572 bn. On the expenditure side of the GDP, private consumption has grown at 19% after contracting 26% last year in the same quarter. Gross fixed capital formation has grown by 55% yoy after contracting 47% last year. The biggest support is coming from exports, growing 39% after a contraction of 22% last year in the same quarter.
Thus, there is support from agriculture and exports to economic growth. There is definitely a need for the govt. to shed its fiscal orthodoxy and take a lead in spending towards creating more employment, especially in the MSME sector and to increase allocation on NREGA.
~ Jay Shankar, Economist, InCred Equities
Vijaya Diagnostic Centre has raised Rs 566.12 crore from 29 anchor investors ahead of its IPO (initial public offering). The South-India based firm has allocated 1,06,61,418 shares at the upper price band at Rs 531 per equity share to anchor investors such as Goldman Sachs, CLSA, Fidelity International, and Abu Dhabi Investment Authority. The IPO opens for subscription today and will remain open till the end of the week. Vijaya Diagnostic is looking to raise Rs 1,894 crore through the public issue of equity shares in the price band of Rs 522-531 per share.
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So far, rally in domestic equities, broad dollar weakness, and regulatory curb by the Chinese government have led to more FII flows diverting to India. This was clearly visible as FII remained net buyers for Rs 6,000 crs in past two sessions. That apart, data showed the Indian economy expanded at a record 20.1% YoY in Q2 2021, slightly higher than market forecasts of 20% while India’s infrastructure output growth stood at 9.4 % YoY despite the second wave of covid-19 infections and localized lockdowns supporting rupee. Given by absence of any intervention by the RBI up to 73 levels, technically, the next support for the pair is near 72.80 while 73.50 remains a strong resistance, keeping the pair consolidated between 72.80-73.50 levels for now. Amit Pabari, managing director, CR Forex Advisors
Ami Organics Rs 570-crore IPO is set to open for subscription on 1 September 2021, along with Rs 1,895-crore Vijaya Diagnostic Centre IPO. In the primary market, Ami Organics shares were quoting at a premium of Rs 122 over the issue price. In the grey market on Tuesday, Ami Organics shares were trading at Rs 732 apiece, a premium of 20 per cent, over the upper end of IPO price band, according to the people who deal in unlisted shares of the companies. Upon successful listing, Ami Organics will join the likes of Aarti Industries, Hikal Ltd, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd.
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Barring Nifty Metal index, all the sectoral indices were trading in the positive territory. Bank Nifty gained 0.63 per cent taking it above 36,650 level
Housing Development Finance Corporation (HDFC), Kotak Mahindra Bank, Maruti Suzuki, Tata Steel, Bharti Airtel were top index laggards
Axis bank, Bajaj-Auto, Nestle India, L&T, Asian Paints, HUL, ICICI Bank and ITC were among top BSE Sensex gainers
BSE Sensex hit a record high of 57,765 and Nifty 50 index surged to a new all-time high of 17,185.60
We are of the view that, as medium-term trend is still into the positive side and likely to continue in the near future. Hence the ideal strategy for day traders would be to buy on dips and sell on rallies. 16980/57100 would be a sacrosanct support level for the swing traders, above the same uptrend momentum likely to continue up to 17200/58200 further upside may also continue which could lift the index up to 17275/58450. On the flip side, a strong possibility of one quick intraday correction up to 16900/56800 is not ruled out if the index succeeds to trade below the 16980/57100 support level. (Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities)
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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of petrol and diesel were cut by oil marketing companies on Wednesday after a seven-day hiatus. Today, petrol in the national capital costs Rs 101.34 per litre, down 15 paise from yesterday. Diesel in the capital city is retailing at Rs 88.77 per litre, a 15 paise drop from yesterday. Petrol and diesel price were left unchanged for 35 days earlier last month. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates.
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The August series was quite positive for the bulls wherein Nifty was up by more than 5%. In the same series, Nifty 50 provided a breakout from its 2 months range which led to some short covering plus the aggressive long built-ups. The broader market however traded with a negative bias wherein the Nifty bank, Nifty midcap and Nifty small-cap underperformed the Nifty with a high margin. The Nifty rollovers are good as it saw 83.98% rollover against the average of 78.48%. The Banknifty rollover was lower than the average as it stood at 79.08% against the average of 79.41%. (Jay Thakkar is the Vice President and Head of Equity Research at Marwadi Shares and Finance)
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