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Indian equity markets continued to extend their gains, ending higher for the fourth straight day. Improving global sentiment and lowest Covid-19 cases reported in India over the last 42 days spurred investors in today's session.
The S&P BSE Sensex ended 1.5% higher at 39,574 while the NSE Nifty 50 index ended with gains of 1.4% at 11,662. Both benchmark indices ended at their highest level in February this year. Both Sensex and Nifty have now gained in six out of the last seven trading sessions. The indices have gained 8% each in the last seven trading sessions.
Financials and Autos led the outperformance in today's session. The Nifty Bank ended with gains of 2% courtesy gains in IndusInd Bank, HDFC Bank and ICICI Bank.
The Nifty Auto index ended 1.2% higher owing to gains in Tata Motors (up 7.7%) and Mahindra & Mahindra (up 3.5%). Tata Motors ended as the top gainer on the Nifty 50 index.
Nifty Realty (up 2.6%) and Nifty Media (up 1.8%) were the other sectoral outperformers in today's session.
The Nifty Metal index was the top laggard today, ending 0.7% lower while the Nifty FMCG and Nifty Pharma indices ended little changed but with a negative bias.
Broader markets undeperformed in today's trade. The midcap index ended 0.6% higher while the smallcap index ended with gains of 0.5%.
India Volatility Index ended little changed at 19.63.
Market breadth was in favour of the gainers. 1,083 stocks on the NSE ended with gains while 763 stocks declined.
The Mumbai-based private lender reported its July-September quarter updates on Monday. The lender's net advances growth of 2% year-on-year while deposits grew 10% compared to last year.
CASA ratio for the lender stood at 40.4% from 41.4% as compared to the previous year.
Retail deposits and deposits from Small Business Customers rose 12% compared to the previous quarter to Rs 75,610 crore.
Shares rose as much as 4.5% to Rs 628.3, up for the third straight day.
The company has informed the exchanges that Toll Logistics - one of Asia Pacific's leading integrated logistics services provider with operations in road, rail, sea, air and warehousing, has signed a deal with Ramco Logistics.
Ramco Logistics ERP will transform the company's supply chain operations of its chemicals business division in Australia and New Zealand.
In addition, Ramco Logistics will also be rolled out as a unified out-of-the-box ERP across its new businesses in Asia.
Shares gained as much as 5% to Rs 493, post the announcement. The stock is trading at the highest level since April 2018 and is up for the seventh straight day.
The company's promoter Urmila Lohia will be selling up to 1.76 crore shares of the company, amounting to a 6.72% stake through an Offer for Sale.
The floor price of Rs 24 per share is a 3.6% discount to Monday's closing price. The promoter will fetch a sum of Rs 42.1 crore post the stake sale.
Promoter stake post the OFS will come down to 75% from 81.72% earlier.
The OFS for non-retail investors is open today and will open tomorrow for the retail investors.
Shares are locked in an upper circuit of 5% at Rs 25.6. The stock is up for the third straight day, trading at the highest level in nearly nine months.
Shares fell as much as 1.4% to Rs 742.3, post the announcement.
Shares gained as much as 5.6% to Rs 818.4, post the announcement. The stock is up for the second straight day, trading at the highest level in nearly two months.
Let's take a look at how European markets are trading:
The company informed the exchanges on Monday that it will commence manufacturing of Calcium Nitrate - a water soluble and entirely imported fertiliser as on date.
The move will make GSFC the first company in India to manufacture Calcium Nitrate within the country, the company said in an exchange filing.
The company plans to commence production with an initial capacity of approximately 10,000 MTPA, expandable up to 15,000 MTPA. The capacity may also reach 30,000 MT in the next 12 months.
The company expects an addition of Rs 20 crore to its topline and 7-8% growth in its bottomline from the move.
India's annual requirement of the product is about 1.2 lakh MT which is entirely imported.
Shares gained as much as 4.3% to Rs 66.9 - the highest level in a month. The stock has gained in six out of the last seven trading sessions.
Morgan Stanley has raised its price target on the stock to Rs 1,852 from the earlier Rs 1,640. Shares gained as much as 3.7% to Rs 1,344.9 and are up for the fourth straight day.
The company informed the exchanges on Monday that the board of directors will meet on October 8, to consider the proposal of a buyback of the company's fully paid-up equity shares.
Shares are locked in an upper circuit of 5% to trade at an all-time high of Rs 860.45. The stock has snapped a two-day losing streak.
The stock has gained over five times from its 52-week low of Rs 167.95 which it made on March 24, 2020.
The volumes on the stock today are six times higher than its 20-day average. It is trading in overbought territory with Relative Strength Index (RSI) at 74.
Shares gained as much as 3.9% to Rs 364 - to its highest level in a month.
The company has cut prices of the fuel used in transport and for cooking after the government cut prices of natural gas to the lowest in a decade.
The price of CNG or Compressed Natural Gas is cut by Rs 1.05 per kg and that of Piped Natural Gas or PNG is cut by Rs 0.7 per cubic meter, according to a statement on the company's website.
The revised delivered prices of CNG will be Rs 47.9 per kg and for PNG will be Rs 29.8 per standard cubic meter for slab 1 and Rs 34.5 per standard cubic meter for slab 2.
The new rates are effective starting today, according to the city-gas distributor.
After the price revision, MGL's CNG offers savings of about 62% and 38% as compared to petrol and diesel respectively at the current price levels in Mumbai, according to the company.
Shares fell as much as 1.1% to Rs 845 and are down for the second straight day.
Morgan Stanley also raised its price target on the stock to Rs 2,300 from the previous Rs 1,810.
Shares gained as much as 3% to an all-time high of Rs 2,090. The stock has gained in six out of the last seven trading sessions.
India's Services Purchasing Managers' Index for the month of September stood at 49.8 from 41.8 in August and 48.7 during the same period last year, according to IHS Markit.
The reading in September was the highest since February this year. However, the reading remained in contraction territory for the seventh straight month.
A reading below 50 indicates contraction while that above 50 indicates expansion.
Employment index fell to 46.8 from 48.2 in August, marking the seventh straight month of contraction.
New businesses rose as compared to August to their highest since March this year, as per IHS Markit.
The composite Purchasing Managers Index for the month of September was 54.6 as compared to 46 in August and 49.8 during the same period last year.
The company informed the exchanges on Monday that it has entered into a definitive agreement with Jio Platforms and its affiliates.
The agreement will allow Jio Platforms to license, customise, maintain and access their enterprise e-commerce software and payments platform for their business use, according to their exchange filing.
Shares are locked in an upper circuit of 5% at Rs 82.75 and are gaining for the fourth straight day. This is the second straight day of upper circuit for the stock.
The company has informed the exchanges that booking for its latest SUV, 'Thar' has crossed 9,000, since its launch on October 2.
The booking milestone has been achieved despite only 18 cities being part of the phase one markets, the company said in an exchange filing.
"Thar has resonated well with lifestyle seekers, families & women buyers, thereby opening-up an entirely new set of customers for this 4X4 SUV," Veejay Nakra - CEO of M&M's Automotive Division was quoted as saying.
The company has also said that test drives for the rest of the country will be available from October 15.
Since its launch on October 2, the Thar has received over 36,000 enquiries and more than 3.3 lakh website visitors, according to the press release.
Shares gained as much as 4% to Rs 631.5 and are among the top gainers on the Nifty 50 index.
The rupee has opened with gains in today's session after ending with losses on Monday.
The currency opened at 73.16 against the U.S. Dollar as compared to Monday's close of 73.29. It was the second worst performer in Asia on Monday.
The rupee has outperformed its high-yielding counterpart - the Indonesian Rupiah in the July-September period with gains of over 2%.
Yield on the 10-year government bond opened at 6.01% as compared to Monday's close of 5.996%.
Indian states are planning to sell bonds worth Rs 21,150 crore in today's session.
ANZ in a note said that it prefers holding 5-year tenor bonds, which should benefit from further rate cuts and broader currency support. It sees scope for yields to ease to 4.8% on the back of another 50 basis points of rate cuts during the fiscal year.
The company's U.K. subsidiary Jaguar Land Rover said that retail sales in the July-September period saw significant improvement as compared to the previous quarter.
JLR said that sales in China were particularly encouraging and that its vehicle manufacturing plants in U.K. and Slovakia have increased to a two-shift pattern to meet rising demand.
JLR's Retail sales for the quarter were at 1,13,569 vehicles - up 50% from the pervious quarter. China's sales were up 14.6% sequentially and 3.7% year-on-year.
While the company highlighted improving retail sales in all other markets, it said that they have not yet recovered to pre-Covid levels.
Shares gained as much as 8.4% to Rs 145.2 and are the top gainers on the Nifty 50 index. The stock is up for the fourth straight day.
Coronavirus India Updates: Tally Tops 66 Lakh With Nearly 56 Lakh Recovered
The Bengaluru-based real estate player in its second quarter business updated reported a total sales volume at 8.91 lakh square feet, valued at Rs 690 crore.
The company said that the total average realisation of Rs 7,737 per square feet, achieved during the July-September period was the highest in the last five quarters.
Sales volume, total sales value and Sobha share of sales value rose 37%, 41% and 35% respectively as compared to the previous quarter.
Dependency on Bengaluru sales has come down to 60% during the current quarter as compared to 74% in Q1FY21.
Brokerage firm Jefferies has maintained its buy rating on the stock with a price target of Rs 315.
Shares gained as much as 8.6% - the most in six months to Rs 260. The stock is up for the third straight day and is trading at the highest level in a month.
Both HDFC and HDFC Bank announced their second quarter business updates on Monday evening. The housing finance lender HDFC said that the month of September has seen the strongest recovery since the outbreak of the pandemic.
The individual loan approvals in value terms rose 31% as compared to the previous year while number of loan applications during the period was up 12%.
The company's gross income from dividend was down to Rs 323 crore from Rs 1,074 crore last year while profit from sale of investment was nil as compared to Rs 1,627 crore last year.
On the other hand, HDFC Bank reported a 16% year-on-year growth in overall advances while deposits were up 20% to over Rs 12.2 lakh crore.
The lender also purchased loans worth Rs 3,026 crore through the direct assignment route under the home loan agreement with HDFC.
Shares of HDFC Bank rose as much as 2.4% to Rs 1,141 - the highest in seven months. The stock is up for the seventh straight day - its longest winning streak since June this year.
Shares of HDFC rose as much as 4.5% to Rs 1,866. This is the biggest single-day gain for the stock in three months.
Indian equity markets opened higher for the fourth straight day, rising to their highest level in three weeks.
The S&P BSE Sensex opened 0.9% higher at 39,336 while the NSE Nifty 50 index opened above the mark of 11,600 at 11,603 - up 0.9%.
All sectoral indices opened with gains. The Nifty Bank opened 1.3% higher while Nifty Media, Nifty Realty and Nifty Metal opened with gains of 1% each.
The slow starters in today's session were Nifty FMCG and Nifty Pharma which opened 0.4% and 0.5% higher respectively.
Broader markets have seen a positive start as well. The Nifty Midcap index is up 0.7% while the smallcap index has gained 0.75% at the start of trade.
1,050 stocks on the NSE opened with gains while 281 stocks declined.
Source: ICICI Direct
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