Share Market Highlights: Sensex ends 185 pts higher, Nifty closes above 11,500 mark; M&M gains 6%, Voda-Idea up 12%

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Updated: September 2, 2020 4:13:46 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty witnessed a volatile trading session on Wednesday but managed to end the day with gains.

Share Market Today, Share Market LiveCues from North American stock markets were positive with NASDAQ closing at a record high.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty ended the day’s trading session with gains after witnessing volatility. S&P BSE Sensex ended 185 points or 0.48% higher as it crossed the 39,000 points mark, while the 50-stock Nifty ended at 11,535 points. The volatility index or the India VIX ended 4% lower, after having climbed to 22.5 levels earlier in the day. Nifty smallcap and Nifty Midcap indices were again outperforming the benchmark indices. Nifty Smallcap 100 managed to gain nearly 2% during Wednesday’s trading session.

The Supreme Court will yet again decide a crucial case today. The apex court will today decide on pleas demanding waiver of interest during the moratorium period and waiver of interest on interest during the same period. Although the court has already ruled out complete waiver of interest but has been contemplating whether interest can be charged on interest. The ruling could have far reaching implications for banks.

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Highlights

    16:11 (IST)02 Sep 2020
    Sensex, Nifty end with gains for second day straight; Mahindra & Mahindra up 6%, RIL shares gain 2%

    Sensex and Nifty ended the day’s trading session higher even though it was marred with volatility. S&P BSE Sensex ended 185 points or 0.48% higher as it crossed the 39,000 points mark. On the other hand, the 50-stock Nifty ended at 11,535 points. The volatility index or the India VIX ended 4% lower, after having climbed to 22.5 levels earlier in the day. Nifty smallcap and Nifty Midcap indices were again outperforming the benchmark indices. Nifty Smallcap 100 managed to gain nearly 2% during Wednesday's trading session.

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    15:47 (IST)02 Sep 2020
    Brokerages gung-ho on Bharti Airtel stock after AGR verdict, most say 'Buy'; check upside

    Telecom major Bharti Airtel has maintained its position as a hit favourite post the Supreme Court’s AGR verdict. The stock has been favoured by market participants for its strong position when compared to the weaker Vodafone Idea. After the AGR verdict that gave telecom companies 10 years to pay their dues, Bharti Airtel’s share price has gained over 8%. To add to this, brokerage firms see a massive 27% upside for the telecom giant. Analysts said that in the case of Vodafone Idea succumbing to the price war in the sector and mounting dues, Bharti Airtel will benefit from an increased market share.

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    15:37 (IST)02 Sep 2020
    Sensex, Nifty end the day with gains

    Sensex and Nifty managed to end the day's trading session with gains, despite witnessing a volatile trading session. Sensex ended 185 points higher while Nifty closed at 11,539 points, Mahindra and Mahindra shares jumped 6%.

    15:36 (IST)02 Sep 2020
    Reliance-Future Retail deal is a win-win for both parties?

    "The Reliance-Future Retail deal is a win-win for both parties as Reliance now gets a bigger market share pie in the grocery & fashion segment, whereas Future Enterprises gets rid of all it's debt & pledged obligations in a challenging business environment. Future retail stock has climbed up significantly before the deal as the takeover news was already being factored in the stock price. Retail investors should look to exit Future retail stock anywhere between Rs 140-160 & in turn buy Reliance Industries shares for better returns in the future."~ Abhijeet Ramachandran, Independent Analyst/ Co-Founder and trainer at Tips2trade

    14:33 (IST)02 Sep 2020
    Motilal Oswal initiates coverage of SBI Life Insurance, see 20% upside

    SBILIFE is India’s largest private life insurer with an Individual WRP market share of 13.3% in FY20. It offers a range of Savings/Protection products and has a distinct competitive advantage in distribution due to its strong parentage. SBILIFE has a wide-spread network of 937 offices across the country with 130,418 productive agents and manages total AUM of INR1.6t as at Mar’20.

    SBILIFE is in a sweet spot given its strong distribution network, cost leadership and access to its parent SBI’s large customer base. Overall, we expect operating ROEV to normalize toward 18% levels with Embedded Value (EV) reflecting 16% CAGR over FY20-23E. Thus, we value the company at INR1,000/share based on 2.8x FY22E EV. We initiate coverage on SBILIFE with a Buy rating.

     ~ Motilal Oswal

    14:20 (IST)02 Sep 2020
    IndiaMART InterMESH shares gain 96% in two months, reach all-time high; should you ‘buy’ or ‘sell’?

    IndiaMART InterMesh share price gained over 8.5% during Wednesday's trading session, despite a muted equity market. The stock was trading at Rs 4,158 per share, which is 98% higher from where it was just two months back. The leading Ecommerce company caters to the business-to-business model and has seen a rapid growth since getting listed on the stock exchanges a year ago. The recent spike in the share price, that has taken the stock up 10%, comes after IndiaMART disinvested 70% of its stake in its subsidiary Ten Times Online Private Limited.

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    13:44 (IST)02 Sep 2020
    Loan moratorium ends, but retail borrowers need not worry; restructuring plan in works at PSU banks

    Even as the moratorium window on bank loans closes, retail borrowers may still get relief on repayment and tenure through a one-time restructuring scheme, which is in works. PSU banks are likely to implement a uniform framework for restructuring of retail loans, The Indian Express reported citing unidentified sources. On the other hand, a framework for corporate loans will be guided by final guidelines from the RBI, the report said. After RBI Governor Shaktikanta Das announced the one-time loan restructuring facility earlier this month, Finance Minister Nirmala Sitharaman is likely to take up the issue in the forthcoming meeting with the heads of banks and NBFCs.

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    13:20 (IST)02 Sep 2020
    JM Financial ~ Mastering the relationship-return-risk riddle

    JM Financial, over the past decade, has effectively transitioned to a comprehensive corporate finance advisor-cum-provider and is now actively pursuing scaling up the retail pie as well. What distinguishes JMF from other financiers: 1) leveraging sticky relationships with institutional, wealth and corporate clients through diversified albeit niche offerings; 2) differentiated business approach in operating segments; 3) graded and calibrated growth (not chasing size) with low risk tolerance and superior risk-adjusted returns (>3.5%); 4) focus on building optimal blend of principal and flow business, and linear and non-linear revenue streams; and 5) high capitalisation (<4x leverage) all through its existence. Weak real estate sentiment and delayed resolution of distressed credit may weigh on earnings in the immediate term (flat in FY21E), partially offset by sustained momentum in IWS (Investment banking, Wealth management & Securities) business. Valuing operating businesses separately, we arrive at an SoTP-based target price of Rs114. Initiate coverage with BUY.~ ICICI Securities

    12:52 (IST)02 Sep 2020
    Auto manufacturers see volume uptick; four stocks to buy as commercial, private vehicle sales grow

    With India getting back on the road with economic recovery, automobile manufacturers have been witnessing revival in demand in various segments. Some manufacturers have been seeing tractor sales while others have seen growth in sales of entry level cars. Manufacturers of cars, tractors and other vehicles were expected to see a spike in sales as the economy opened up owing to pent-up demand and even the shift towards personal mobility owing to the coronavirus pandemic. Analysing the sale volumes, brokerage and research firm Motilal Oswal has picked its top bets in the automobile industry.

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    12:01 (IST)02 Sep 2020
    Buy Persistent Systems ~ Target price Rs 1,276

    Company has won a large deal during the quarter which will ramp up over the next few quarters. We expect the company to post revenue/EBITDA/PAT growth of 11.6%/21.4%/19.7% between FY20-FY22 given negligible impact of Covid-19 on FY21 numbers strong deal wins, ramp up of existing projects along with margins expansion.

    ~ Angel Broking

    11:11 (IST)02 Sep 2020
    Vodafone Idea shares gain 13%; struggling telco looks to raise funds, analysts remain wary

    A day after falling deep into the red, shares of struggling telecom giant Vodafone Idea were seen surging 13% to trade at Rs 10 per share. Vodafone Idea shares nose-dived, a massive 25%, on Tuesday after the Supreme Court gave telecom companies 10 years to pay their AGR dues, which was a decade short of what the government had suggested. However, late on Tuesday the telecom company informed the bourses that its Board of Directors will meet this week to consider raising funds. The move comes after experts questioned whether the Supreme Court’s decision would make the telecom sector a duopoly with the exit of Vodafone Idea owing to its weaker financial position.

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    09:58 (IST)02 Sep 2020
    Sensex, Nifty open flat but steadily inch higher; IT stocks gain while banks trade with losses

    Domestic benchmark indices opened flat on Wednesday morning but soon looked to inch higher steadily. S&P BSE Sensex after opening with marginals gains was seen gaining to trade 100 points higher after the initial minutes of trade but continued to witness volatility. On the other hand, the 50-stock Nifty climbed higher to breach the 11,500 mark. The gains were led by Ultratech Cement, ONGC, and Tech Mahindra. On the other end of the table Bajaj Auto was down the most, followed by Kotak Mahindra Bank, State Bank of India, and HDFC. India Vix was marginally down.

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    09:24 (IST)02 Sep 2020
    Sensex, Nifty open flat

    Following a weaker movement in SGX Nifty, domestic benchmarks opened flat on Wednesday. While the 50-stock Nifty managed to hold above the 11,470 mark, Sensex was down 20 points. 

    09:08 (IST)02 Sep 2020
    V-shaped recovery? Manufacturing PMI in expansionary zone

    After four straight months of a Covid-induced contraction, Indian manufacturing grew in August, as fresh orders flowed in. Manufacturing PMI touched 52 in August, against 46 in July.

    08:51 (IST)02 Sep 2020
    Bond yields fall on Tuesday

    The benchmark 1-year G-Sec closed down at 5.943% as the RBI attemped to control yields. On the previosu day the bond yield had closed at 6.078%. 

    08:44 (IST)02 Sep 2020
    Vodafone-Idea, ONGC, Banking shares to be in focus today; 5 things to know before the opening bell

    Domestic benchmark indices stare at a muted opening on Wednesday with the SGX Nifty trading flat. S&P BSE Sensex and NSE Nifty 50 enter Tuesday’s trading session after recovering partially from the massive fall that they witnessed on Monday. Market participants expect the equity benchmarks to move within range for a few trading sessions as stock markets adapt to new margin trading norms. Banking stocks to be in focus today with the interest waiver case up for hearing. Telecom stocks will also be on the watchlist as investors react to the 10-year timeline given by the Supreme Court to pay AGR dues.

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    08:13 (IST)02 Sep 2020
    A look back at yesterday's trading session

    “Strengthening of the Indian rupee helped the Nifty 50 index recover some of Monday's loss to end higher at 11,470.25. The satisfactory outcome from the Supreme Court on AGR arrears also helped improve sentiment in our market. However, the news of the debt crisis has painted a bleak picture for financiers. This was reflected in the performance of the Bank Nifty that closed at 23812 with nominal gain. The market is still trying to gauge the impact of the new margin norms that came into effect from today. Until then we expect the market to remain in a wide range of 11300 and 11650. If the Nifty breaks 11320 on Wednesday, it will fall to 11150 or 11100. On the higher side, 11550 and 11650 levels would act as resistance for the market," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

    08:11 (IST)02 Sep 2020
    Franklin Templeton values Rivaaz Trade securities at zero after default on debt payment

    Four shuttered debt schemes of Franklin Templeton Mutual Fund saw their respective net asset values (NAV) fall on Monday as Rivaaz Trade Ventures (RTVPL) — a Future group entity — defaulted on its scheduled debt obligation due on August 31. Due to the default in payment, the securities of RTVPL will be valued at zero based on Association of Mutual Funds in India (Amfi) standard hair cut metrics.

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    08:11 (IST)02 Sep 2020
    Non-food credit growth at 5.5%, banks’ investments in securities at record high

    Growth in non-food credit continued to languish at 5.48% year on year (YoY) during the fortnight ended August 14, even as it improved from 5.2% in the previous fortnight. Banks’ investments in securities so far in FY21 stand at Rs 5.7 lakh crore — the highest ever for the corresponding period. Incremental credit declined by Rs 1.7 lakh crore on a year-to-date (Y-T-D) basis to Rs 101.47 lakh crore, showed data released by the Reserve Bank of India.

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    08:10 (IST)02 Sep 2020
    Loan moratorium over but cash crunch persists? Reduce EMI, reset tenure

    Currently RBI has not extended the temporary measure of relief to Covid hit borrowers by way of moratorium, beyond August 2020. In recent years, the interest rate has been reducing. If you have kept the EMI the same, then your loan tenure would have reduced. You may request the bank to reduce your EMI, resetting your loan tenure to earlier tenure. This may provide a small relief to you.

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    08:06 (IST)02 Sep 2020
    Loan moratorium: Govt repeats its opposition to interest relief on EMIs

    The finance ministry on Tuesday argued against a waiver of interest on interest or any ‘static relief’ under the six-month moratorium on term loans that ended on August 31, saying such one-size-fits-all solutions could militate against financial stability. In a fresh affidavit submitted to the Supreme Court, the ministry, however, said the debt restructuring plan notified by RBI early last month involved the option of two-year moratorium, as also customised reliefs to individual borrowers, including “alteration in the rate of interest and haircut (by lenders) on amount payable as interest”.

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