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Vodafone International wins BIT claim against Government of India. pic.twitter.com/Lv0u1CoXoz
— BloombergQuint (@BloombergQuint) September 25, 2020
All sectoral indices ended with gains. Nifty Auto and Nifty I.T. indices were the top sectoral gainers in today's session, both ending higher by 3.3%.
Two other indices - Nifty Media and Nifty PSU Bank saw gains of over 3%. The PSU Bank index, which underperformed for most of the session saw a surge in the final minutes of trade.
Rest of the sectoral indices, Nifty Bank, Nifty FMCG, Nifty Metal, Nifty Pharma and Nifty Realty, all ended with gains higher than 2%.
Broader markets reversed most of Thursday's losses as well. The Nifty Midcap index ended 2.8% higher while the smallcap index was not far behind, ending with gains of 2.7%.
The India Volatility Index, after a 12% surge on Thursday, ended 11.7% lower at 20.76.
1,513 stocks on the NSE ended with gains while 320 stocks posted losses.
India is considering a floor price for natural gas produced from local fields to shield explorers like ONGC, as tariffs slump, people with knowledge of the matter told Bloomberg.
The proposal being considered by the oil ministry, pegs the price to the popular benchmark Japan-Korea Marker, that is used for LNG tariff in North Asia with a discount, sources said.
Prices of natural gas produced from domestic fields that were handed over to ONGC and Oil India have fallen to the lowest in a decade and are below the imported price of the fuel. A global glut is threatening to undermine the investments and turn gas businesses of ONGC and Oil India unviable.
Shares of ONGC gained as much as 4% to Rs 69.25, snapping a four-day losing streak, while those of Oil India too snapped a four-day losing streak, gaining as much as 4% to Rs 88.
The state-run lender at its meeting held today, has decided to raise additional equity share capital worth Rs 2,000 crore through a Qualified Institutional Placement (QIP).
The bank will equity shares of face value of Rs 10 each in one or more tranches and the premium will be decided as per applicable guidelines, the bank said.
The QIP issue will be within the overall maximum limit board approved capital raising plan of Rs 5,000 crore.
Shares gained as much as 4.6% to Rs 87.15, post the announcement. The stock has snapped a seven-day losing streak.
India is likely to see a slower pace of economic growth over the next few years, which means stock investors should expect lower returns, according to analysts at Quantum Advisors.
"India's stock market has rebounded more than 40% from a March bottom. But whether it can deliver the 12-15% annual return frequently touted by local asset managers in the long-term, depends on how fast India's economy will grow," Arvind Chari, head of fixed income and alternative investments at Quantum said in the note.
The continued rise in stock prices combined with declines in profit expectations have driven the Sensex to its highest valuation multiple since 2008.
"In the very near-term, with virtually zero earnings visibility, equities are likely to be driven by the success or failure of outcomes of policies dictated by a government that is still not coming to grips with the economy's real problems," Chari said.
The company has informed the exchanges that the Reserve Bank of India has granted in-principle authorisation to the company, to set-up and operate a Bharat Bill payment operating unit.
The company can now directly handly payment and aggregation of payment services relating to bills under the scope of the Bharat Bill Payment servics.
It will now have direct access to operate as an operating unit under the Bharat Bill Payment Unit and shall provide services to its customers in the most remote parts of the country, the company statement said.
Shares are locked in an upper circuit of 10% at Rs 27.10, post the announcement.
Let's take a look at how benchmark indices in Europe are trading:
The company informed the exchanges on Thursday that the Yedeshi-Aurangabad BoT project, implemented by Yedeshi-Aurangabad Tollway (SPV), has been issued a completion certificate by the competent authority.
The SPV, which is now part of the IRB Infrastructure Trust - private InvIT, will now be collecting toll at full toll rates on this project, the company said in a statement.
Shares gained as much as 8.3% to Rs 110.7 and is among the top performing stocks on the Nifty 500 index.
The drugmaker has announced the launch of Dexmedetomidine Hydrochloride in 0.9% Sodium Chloride injection in the U.S. Market.
The injection is the therapeutic equivalent generic version of Precedex in 0.9% Sodium Chloride injection, approved by the U.S. FDA.
The injection had sales of nearly $210 million for the most recent 12-month period ending June 2020, as per data from the IQVIA.
Shares gained as much as 2.2% to Rs 5,139, snapping a two-day losing streak.
The government's efforts to privatise state-run refiner Bharat Petroleum can spill over to FY22, Reuters reported citing a document and people it did not name.
The document suggests that it can take as long as another 21 months for the sale to be completed, although some stages could be carried out concurrently, the report said.
The process can take at least 7-8 months more, Reuters cited an official.
The deadline to submit the initial bids of interest for BPCL were extended to September 30 earlier.
Shares fell as much as 2.3% to Rs 368.55, post the report. The stock is down for the sixth straight day, its longest losing streak in four months.
The I.T. company informed the exchanges on Thursday that it has partnered with Maurices to help the company build a greenfield I.T. ecosystem for its growth and transformation.
Maurices is a women's fashion apparel retail chain based in the U.S. and Canada.
TCS will leverage its transformative portfolio to help Maurices build a brand new, future-proof technology stack and enhance agility. It will also help Maurices build a brand-new data analytics platform with extensive reporting features.
Shares gained as much as 4.4% to Rs 2,435, snapping a two-day losing streak.
The company has announced that the U.S. FDA has approved its Abbreviated New Drug Application (ANDA) for Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, 220 mg / 25 mg (OTC).
The drug is the generic equivalent of Aleve PM Tablets 220 mg / 25 mg, of Bayer HealthCare LLC, the company said in an exchange filing.
The tablets are used for relief of occassional sleeplessness associated with minor aches and pains to help you fall asleep and stay asleep.
Shares gained as much as 9.6% to an all-time high of Rs 395, before slightly cooling off.
Shares gained as much as 8.1% - the most in six months to Rs 585. The stock snapped a five-day losing streak. ICICI Securities has a price target of Rs 735 on the stock, implying a potential upside of nearly 36% from Thursday's closing price.
Zydus Cadila received final approval from the U.S. FDA to market Dimethyl Fumarate Delayed-Release Capsules in the strength of 120 mg and 240 mg.
The U.S. FDA has also allowed Zydus to be eligible for 180 days of generic drug exclusivity. as it was one of the first ANDA applicants to submit a substantially complete ANDA, the company said in an exchange filing.
The approval was granted after the judgment in favour of the company by the U.S District Court of Delaware, holding that the only unexpired patent covering Tecfidera is invalid.
The drug will be manufactured at the group's manufacturing facility at the SEZ in Matoda.
Shares recovered from the day's low to gain as much as 1.5% post the announcement. The stock snapped a four-day losing streak.
Tata Consumer Products is weighing a non-binding bid for the vending machine business of Coffee Day Enterprises, people familiar with the matter told Bloomberg.
The board has approved a proposal to explore the acquisition from Coffee Day, which is seeking a valuation of about Rs 2,000 crore for the same, sources said.
Deliberations are at an early stage and Tata Consumer can still decide against an offer, the sources said. Coffee day is also in talks with other potential suitors for the vending business.
Shares gained as much as 4% to Rs 507.9, post the announcement. The stock has snapped a five-day losing streak.
The drugmaker announced this morning that it has received final approval for the generic version of Biogen IDEC's Tecfidera capsules 120 mg, 240 mg and 120 mg/240 mg starter pack from the U.S. FDA.
The drug is used in the treatment of relapsing forms of multiple sclerosis, the company said in an exchange filing.
As per IQVIA data, Tecfidera had U.S. sales of approximately $3.8 billion for the 12-month period ending July 2020.
Shares gained as much as 4% to Rs 762.5, post the announcement.
The currency has opened stronger in today's session. The rupee opened at 73.75 against the U.S. Dollar as compared to Thursday's close of 73.90.
Scotiabank in a note says that while portfolio inflows are supportive of the rupee, broad dollar strength will likely curb gains and exert some downward pressure on the high-yielding currency.
Yield on the 10-year government bond opened at 5.993% as compared to Thursday's close of 5.994%.
Traders in the bond markets will watch for the government's plan to sell bonds worth Rs 30,000 crore. The RBI rejected all bids at the bond-purchase auction on Thursday.
UCO Bank said that this clearly signals that RBI wants yields below 6%.
Shares are locked in an upper circuit of 5% at Rs 42.35. The stock has snapped a four-day losing streak of lower circuits.
The company informed the exchanges this morning that its wholly-owned subsidiary - GMR SEZ and Port Holding will sell its entire 51% stake in the Kakinada SEZ to Aurobindo Realty & Infrastructure.
The total consideration for the sale of the stake is Rs 2,610 crore, the company said in the exchange filing. Out of the sum, Rs 1,600 crore would be received on the closing date while the rest will be received over 2-3 years, which is contingent upon certain agreed milestones.
As part of the proposed transfer, the 100% stake of Kakinada Gateway Port held by Kakinada SEZ, will also be transferred to Aurobindo Realty.
The transaction will be subject to statutory and regulatory approvals.
The company intends to use the proceeds to reduce the debt on a group level.
Shares gained as much as 3.55% to Rs 21.9, post the announcement, snapping a four-day losing streak.
Shares of the manufacturer and marketer of enzymes are trading with gains for the third straight day, after a 20% surge on Thursday.
As per data available on the exchanges, the Nalanda India Equity Fund acquired 41.9 lakh shares of the company at Rs 263.8 per share. The shares purchased, amount to 3.75% stake in the company.
On the other hand, Advanced Vital Enzymes sold 30 lakh shares of the company or 2.7% stake at Rs 265 per share.
Shares gained as much as 8% to Rs 294.9. The stock is up for the third straight day and is trading at the highest level since January 2018.
Indian equity markets opened the October series on a positive note, starting trade with gains of over 1%.
The S&P BSE Sensex opened 1.2% higher at 36,991 while the NSE Nifty 50 opened 1% higher at 10,910. Both benchmarks saw their biggest single-day fall in four months on Thursday.
Sectoral indices too have opened higher. Nifty Bank and Nifty Auto, which did not have a single gainer in the September series have opened with gains of over 1%.
The Nifty Pharma index is the top gainer, up 1.6% while Nifty FMCG, Nifty Media, Nifty Metal and Nifty Realty too have opened higher by 1%.
The broader markets opened with gains. The midcap index is up 1% while the smallcap index is up 1.2% in the early minutes.
Despite the gains, the markets are most likely to post losses for the week. As of closing on Thursday, the Sensex and Nifty were down 6% for the week with all the constituents in both the indices trading with losses.
1,140 stocks on the NSE have opened with gains while 332 are declining.
Source: ICICI Securities
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