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Indian equity markets barely moved from the levels at which they closed on Monday. However, the benchmark indices managed to close higher for the ninth straight day.
The S&P BSE Sensex ended with gains of 30 points, extending its winning run for the ninth straight day to close at 40,625.
The NSE Nifty 50 index too managed to salvage gains of 3 points in the final minutes of trade, to end at 11,934.
It was I.T. that saved the day for the markets in today's session. The index ended higher for the 12th straight day, with gains of 1.3%. This is the longest winning streak for the index in 22 years.
Reliance Industries was the other major contributor to the upside, ending with gains of nearly 2%.
The gains in Reliance and I.T. stocks was offset by banking majors. The Nifty Bank ended nearly 1% lower while the PSU Bank index declined over 1.5%.
The other major laggards in today's session were Pharma stocks, with the index ending 1.8% lower while the Nifty Media index fell 1.7%.
Broader markets continued to underperform. The Nifty Midcap index fell 0.5% while the smallcap index ended with losses of 0.2%.
India Volatility Index fell close to 2% to end at 20.71.
1,019 stocks on the NSE ended with losses while 814 stocks managed to gain.
Government’s NBFC Support Scheme Helped Only A Few Non-Bank Lenders
The company has announced a collaboration with U.K.-based SPRINT (Space Research and Innovation Network for Technology), for major projects in space data and technologies.
The partnership will enable Cyient to identify new business opportunities, lower its product development costs and to offer geospatial solutions with higher precision.
“The new partnership with SPRINT will allow us to strike up a dialogue with academic institutions and SMEs in SPRINT’s network, and gain access to their cutting-edge technology, skill sets, and expertise for potential collaborations,” Matt Wood of Cyient was quoted as saying.
Shares recovered from the day’s low to gain as much as 1.14% to Rs 381.5, post the announcement.
Factors At Play For Wipro:
The aviation software provider has announced that it will implement its flagship aviation software Ramco Aviation M&E for a leading helicopter OEM, to digitally transform its global MRO operations.
The Ramco Aviation Suite will enable high productivity and automation of MRO operations by moving away from manual recording of data and enabling access to real time information, the company said in an exchange filing.
"Having gained the confidence of seven out of the top 10 heli-operators, this win puts us on the front foot to lead the Heli MRO segment," Virender Aggarwal, the company's CEO was quoted as saying.
Shares are locked in an upper circuit of 5% at Rs 513.45, post the announcement, up for the second straight day.
Let's take a look at how European markets are trading:
Average yields on Indian state development loans fell to 6.57% on Monday. The 8.7 basis points decline was the most in nearly five months, according to the Clearing Corporation of India index data.
RBI Governor Shaktikanta Das on Friday had said that the central bank will be buying state debt. It will buy bonds issued by the state governments as a special case.
The yields on such debt had also declined 7.7 basis points on Friday, according to Bloomberg data.
State development loans are quasi-sovereign securities and are generally considered low risk investments as compared to corporate bonds.
The I.T. major has informed the exchanges that the Bahrain Development Bank has selected the company's BaNCS Global Banking Platform to speed up innovation.
The platform will help the bank meet the unique needs of the small and medium business segment spanning digital banking channels, origination, core banking, trade finance, treasury and other supporting services, the company said in an exchange filing.
"Designed on the Digital First, Cloud First philosophy, TCS BaNCS will help BDB enhance agility, drive superior customer experiences and transform itself to meet the needs of an ever evolving banking environment,” said Venkateshwaran Srinivasan, Head, TCS Financial Solutions.
Shares currently trade 0.5% lower at Rs 2,815.
The company's arm Avenue Therapeutics received a Complete Response Letter from the U.S. FDA regarding the company's New Drug Application for IV Tramadol.
The letter stated that the application cannot be approved in its present form as the drug, intended to treat patients who are in acute pain and require and opioid, is not safe for the intended patient population.
In addition, the CRL stated that the FDA requires an adequate terminal sterilization validation prior to NDA approval, which is planned for later this quarter.
Shares are currently flat after gaining as much as 1.9% to an all-time high of Rs 829.
Vedanta Resources Ltd. plans to start returning funds it raised from banks and bondholders to finance the delisting of the India unit as soon as this week, Bloomberg News reports citing people with knowledge of the matter.
The decision has been taken after the delisting plan of the company failed.
In addition to the principal, Vedanta will also pay a small interest on the $1.1 billion loan. The company has not made any decision on whether it will propose a delisting again as it is still very early days, the sources said.
The company had drawn $1.1 billion from banks and raised $1.4 billion via bonds to fund the share buyback for the delisting process.
A Vedanta representative declined to comment on Bloomberg's story.
Shares are off the day's high after gaining as much as 7.2% to Rs 103.9. The stock currently trades 3.5% higher at Rs 100.3.
Stock Reaction:
The company has confirmed that it has received orders of nearly 38,000 wheels from the U.S. and European Union market.
The order for the wheels is worth $3,68,000, and will be executed in the months of December and January, the company said in an exchange filing.
The orders will be executed in the company's Dappar and Chennai plant, according to the company, who also said that it is anticipating more orders from the same customer base.
Shares gained as much as 4.9% to Rs 496, post the announcement. The stock is trading at the highest level in nearly two months.
Rhizen Pharma announced that it has entered into an exclusive license agreement with Curon Biopharma for development and commercialisation of Tenalisib - a Dual PI3K Delta and Gamma inhibitor for Oncology in Greater China.
Alembic Pharma, through its wholly-owned subsidiary, holds 50% stake in Rhizen Pharma.
Rhizen, under the deal will receive an undisclosed upfront cash payment and is eligible to receive additional development and commercial milestone payments.
The overall deal value is pegged at $149.5 million along with double-digit royalties on annual net sales of Tenalisib.
RK Baheti, Alembic Pharma's CFO told BloombergQuint that the company had invested in Rhizen a few years back and it is working out well. "We are doing good in the oncology drugs in the U.S. This will be a big material deal for Rhizen," he said.
Shares gained as much as 1.8% to Rs 957.9, and has snapped a four-day losing streak.
The company informed the exchanges that it will hold a board meeting to consider a proposal for buyback of equity shares.
The board meeting is scheduled to be held on October 15, the exchange filing said.
Shares gained as much as 19% - the most in nearly four months to Rs 694. The stock is trading at the highest level since January 1 this year.
It is up for the second straight day, and has gained in five out of the last seven trading sessions.
The currency has opened weaker for the second straight day in today's session after snapping a three-day gaining streak on Monday.
The rupee opened at 73.39 against the U.S. Dollar as compared to Monday's close of 73.27.
Yield on the 10-year government bond opened at 5.918% as compared to Monday's close of 5.937%.
Within the bond markets today, 13 Indian states plan to sell bonds worth Rs 17,750 crore.
ICICI Securities Primary Dealership told Bloomberg that the RBI has acknowledged with a higher OMO size that it cannot hope to control the yield curve by doing only limited interventions.
The company informed the exchanges that it has received approvals for two ophthalmic products and two oral liquid suspension products.
The exchange filing also said that it is expecting five more approvals in Ophthalmic and Oral Solids business in the fourth quarter of Calender Year 2020.
Shares gained as much as 4.8% to Rs 17.6, post the announcement. The stock has snapped a three-day losing streak.
Shares gained as much as 4% to Rs 8,788. The stock has gained only twice in the last seven trading sessions.
The healthcare company reported a year-on-year decline of 8% in its consolidated revenue for the July-September quarter to Rs 115.6 crore.
Net profit nearly doubled to Rs 24.5 crore but that was due to a tax reversal.
Ebitda rose 5% while Ebitda margin stood at 25.5% from 22.3% as compared to the same period last year.
Operating performance was steady owing to lower operating costs and higher bed occupancy due to Covid-19 patients.
Shares of the company rose as much as 6.4% to Rs 106.2, post the announcement. The stock is trading at the highest level in over eight months. It is also up for the fifth straight day, the longest winning streak since November 2019.
Indian equity markets have opened flat as they begin to show signs of exhaustion after an eight-day gaining streak.
The S&P BSE Sensex and NSE Nifty 50 have opened unchanged at 40,592 and 11,934 respectively. Both indices have had their longest winning streak in the last two and a half years.
Sectoral indices too have opened little changed. Most of them have opened flat with a negative bias, as have the broader markets which have no significant moves to talk about at the start of trade.
Market breadth is even at the start of trade. 704 stocks on the NSE have opened with gains while 727 are declining.
Source: ICICI Direct
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