Sensex, Nifty Fall For Second Day Dragged By I.T., Pharma, Realty Stocks; FPIs Remain Net Sellers

India's stock benchmarks declined for the second day in a row, dragged by losses in information technology, pharma, realty stocks.

The Sensex lost 0.68% (over 400 points) to 59,934.01. The Nifty 50 declined by similar magnitude to 17,877.40. Today 11 of Nifty 50 stocks rose while 39 fell. Maruti Suzuki, Eicher Motors, Adani Ports, Power Grid, NTPC were among the top gainers. Hindalco, Infosys, Tech Mahindra, Cipla, Hero MotoCorp were the top losers on the 50-stock index.

The broader indices outperformed their larger peers,with MidCap index gaining 0.3% and SmallCap gauge closing little changed.

Auto and auto ancilliary stocks gained the most, amid several reports from analysts over the last few months anticipating healthy demand and steady growth.

The rise in auto stocks comes amid comments by SIAM President Kenichi Ayukawa who said that Indian automobile industry aimed to be among the two top producers globally in every segment of vehicles over next 25 years. He also added that India planned to be nearly 100% self-reliance in the entire manufacturing value chain of automobiles. About thirteen of the 19 sectoral indices compiled by BSE Ltd. declined with IT, Healthcare, Metal, Realty measures falling. On the flipside Auto, Power and Utilities gained.

The market breadth is skewed slightly in the favour of bears. About 1,702 stocks rose, 1,795 fell and 123 remained unchanged.

Overseas investors turned net sellers after six days of net buying on Wednesday and remained net sellers even today.

The longest buying stretch by FPIs, this year so far, lasted 13 days from July 28 to August 17.

As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 1,270.68 crore today.

Domestic institutional investors too turned net sellers and net sold equities worth Rs 928.86 crore today.

Institutions have net bought Rs 2,206.07 crore worth of equities this month so far and have net sold Rs 31,277.01 crore worth of Indian equities till date in 2022.

• Yield on the 10-year bond rose 9bps to during the session. This is the most since the 17bps intraday rise on August 5.

• The 10-year bond yield closed at 7.20%.

Source: Bloomberg

• Indian currency depreciated 29 paise to 79.73 during the session.

• The Rupee closed at 79.70, lowest in a week since September 8.

• Over the last two days, Rupee has fallen by 55 paise.

Source: Bloomberg

• Under new owner Tata Group, Air India targets 30% local market share in the next 5 years, versus its 8.4% share as of July.

• Plan focussed on profitability and commercial efficiency.

• Initiatives in areas like refurbishing cabins, serviceable seats, in-flight entertainment systems already underway, CEO Campbell Wilson said.

Source: Statement

Shares of Maruti Suzuki rose 4% to 52-week high of Rs 9,325 apiece. Trading volume is 2.6 times the 30-day average.

The rise comes after reports that Bank of America Securities raised target price of Maruti Suzuki's stock to Rs 10,500 from Rs 9,500 earlier.

Of the 54 analysts tracking the company, 39 maintain 'buy', eight suggest 'hold' and seven recommend 'sell' recommendations. The return potential of the stock is 4.5%.

The stock is the top gainer on Nifty 50 index. It is also among one of the top gainers in Nifty Auto index

Source: Bloomberg

• Rupee depreciates 26 paise to 79.70 during the session.

• The Indian currency is on course to fall for the second day.

Source: Bloomberg

Shares of KPI Green Energy rose over 5.6%, most in over two weeks, to Rs 924, just shy off 52-week high of Rs 962.

Trading volume is 0.7 times the 30-day average.

The rise comes after the company informed exchanges post market hours on Wednesday that it received a new order. The order pertained to executing Wind-Solar Hybrid Power Project of 4.20 MW capacity from Nouveau Jewellery LLP, Surat under 'Captive Power Producer (CPP)' business segment.

Source: Exchange filing, Bloomberg

• European stocks open higher. Banking stocks rally.

Source: Bloomberg

Shares of Ceat jumped nearly 20%, most in at least a year, to a 52-week high of Rs 1,660.9 apiece.

Trading volume is nearly 17 times the 30-day average. The relative strength index of the stock is 82, suggesting it may be overbought.

On Wednesday, JM Financial reiterated 'buy' and raised target to Rs 1,600 from Rs 1,415 (implied return of 15.55%).

Motilal Oswal also reiterated 'buy' and set a target of Rs 1,630, while IIFL maintained 'add', Investec retained 'hold'. Nomura has also reiterated 'neutral' on the stock. The revisions to ratings follow the recent investor day of the company.

The analysts termed the steady demand, buoyancy in OEM segment, improved chip supplies, strength in replacement segment, expansive product offering in PV replacement market, as positive factors. The recent correction in Indian Rupee, crude prices and price increases could aid the recovery in EBITDA margin according to brokerages.

Of the 24 analysts tracking the company, 13 maintain 'buy', five suggest 'hold' and six recommend 'sell'. The return potential of the stock is -19.1%.

Source: Bloomberg, Brokerage notes

Shares of PVR fell nearly 5% and are on course to snap three-day winning streak.

Trading volume is 10 times the 30-day average.

About 4.73 million shares (aggregating to 7.7% equity) changed hands on BSE, according to data compiled by Bloomberg. Details of buyers, sellers are known immediately.

Four investors in PVR, Multiples PE, Grey Birch, Plenty PE and Berry Invst, will offload 7.7% stake in the company, CNBC-TV18 had reported on Wednesday.

Of the 31 analysts tracking the company, 27 maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is 20.5%.

Source: Bloomberg, CNBC-TV18

• We will revive the $70 billion west-coast refinery.

• Identifying the location, it can be at same place or another location will be worked out.

• We also want to offer some help to oil companies, otherwise they may default.

India's stock benchmarks declined after a positive start, dragged by information technology, metal, realty and consumer durables stocks.

The Sensex lost 0.44% (over 250 points) to 60,080.40. The Nifty 50 fell by similar magnitude to 17,919.75. Today 14 of Nifty 50 stocks rose, while 36 fell. Maruti Suzuki India Ltd, Eicher Motors Ltd, Adani Ports Ltd, Power Grid Corporation of India Ltd and NTPC Ltd were the top gainers. Hindalco Industries Ltd, Infosys Ltd, Cipla Ltd, Tech Mahindra Ltd and Divi’s Laboratories Ltd were the top losers.

The broader indices outperformed their larger peers, with MidCap and SmallCap measures little changed. Ten of the 19 sectoral indices compiled by BSE declined.

The market breadth is skewed in the favour of bears. About 1,568 stocks rose, 1,779 fell and 145 remained unchanged.

Shares of Astral Ltd. gained by more than 5.2%, after company approved the purchase of additional 15% equity of Seal IT Services Ltd UK (subsidiary of the company)

The stake will be bought from existing shareholder at a consideration of GBP 52,50,000 (Rs 48 crore)

The Company has also executed Share Purchase Agreement today for the said purchase.

With this acquisition, the total equity stake of the Company in Seal IT Services Limited, UK has increased from 80% to 95%, said in the exchange filing.

Share Purchase agreement has been signed by the company and ODI remittance will be made in seven days

Trading volume is 2.5 times the 30-day average. Of the 24 analysts tracking the company, 12 maintain 'buy', eight suggest 'hold' and four recommend 'sell'. The return potential of the stock is -16.6%.

Source : Bloomberg, Exchange Filing

• Yield on the 10-year bond rose 6bps to 7.18%, highest in over a week since September 7.

Source: Bloomberg

Shares of Tata Steel fell 2%, the most in a week.

The company said in an exchange filing, post market hours on Wednesday, that it will issue non-convertible debentures in a private placement to raise Rs 2,000 crore.

The issue will be split into two series. 5,000 NCDs with a face value of Rs 10 lakh each will issued in series one to raise Rs 500 crore. The date of allotment for first series is September 20, 2022. The date of maturity is September 20, 2027.

In series two, 15,000 NCDs will be issues with face value of Rs 10 lakh apiece to raise Rs 1,500 crore. The date of allotment of second series is September 20, 2022. The date of maturity is September 20, 2032.

Of the 34 analysts tracking the company, 24 maintain 'buy', four suggest 'hold' and six recommend 'sell'. The return potential of the stock is 14.5%.

Source: Exchange filing, Bloomberg

• Shares of HFCL Ltd. rose over 3% during the session.

• The stock gained 3% on Wednesday as well.

• The company received advance purchase order of Rs 341.26 crore from Bharat Sanchar Nigam and Rs 106.55 crore from RailTel Corporation of India.

Source: Exchange filing, Bloomberg

Shares of G R Infraprojects fell 5.2%, most in nearly three months since June 20.

Trading volume is 43 times the 30-day average. Share price crossed below the 50-day simple moving average, indicating potential downward price momentum.

According to a company filing, G R Infraprojects' shareholders intended to offload up to 6.8% of their holdings through an offer for sale.

Holders planned to sell at a floor price of Rs 1,260 on September 15 and September 16.

The base offer size is above 5.7 million shares (5.9% holding), with an option to upsize to 8,70,202 shares (0.9%).

The sale opened for non-retail investors today, while retail investors can bid tomorrow.

Of the 17 analysts tracking the company, 13 maintain 'buy', three suggest 'hold' and one recommends 'sell'. The return potential of the stock is 27.7%.

Source: Exchange filing, Bloomberg

• UpGrad has acquired corporate training firm Centum Learning in a share swap deal.

• With this transaction, Bharti Enterprises Limited and its affiliates are joining upGrad’s cap table.

• Centum’s business will continue to operate independently under the current CEO.

• Centum is expected to clock a revenue of Rs 170 crore in FY23.

Source: Company statement

Shares of Balaji Amines rose nearly 4.5%, most in a week, after completing Phase 1 of 90-acre greenfield project (Unit IV).

The company said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate, propylene carbonate, and propylene glycol plant will be ready to commence commercial production by the end of September 2022.

Balaji Amines has also started construction in Phase 2 of Greenfield Project (Unit IV) for below 2 plants.

The Environmental Clearance for the same has been received well in advance. The company expects to start operations at these state-of-the-art manufacturing facilities around the closure of this current financial year, said in exchange filings.

Balaji Amines Ltd (BAL), is a leading manufacturer of Aliphatic Amines in India.

Trading volume is more than quadruple the 30-day average. Of the six analysts tracking the company, five maintain 'buy' and one suggests 'sell'. The return potential of the stock is 24.9%.

Source: Exchange Filing, Bloomberg

• Shares of Tamilnad Mercantile Bank listed at Rs 510 apiece on the BSE, a discount of 2.85% to its upper band IPO price of Rs 525.

• The stock fell 3.2% over its IPO price in early trade.

Source: BSE

Shares of Vedanta jumped 5% and are on course to gain for sixth day in a row. The stock has gained nearly 20% over the period.

Trading volume is more than nine times the 30-day average. The relative strength index is at 79, suggesting the stock may be overbought.

The company has been declared as the highest bidder for Ghogharpalli and its Dip Extension coal block, located in Sundargarh district, Odisha under Tranche V of commercial coal block auction conducted by Ministry of Coal.

The mine has total reserves of 1,288 million tonnes and an estimated per annum capacity of 20 million tonnes.

Of the 17 analysts tracking the company, 13 maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is 4.5%.

Source: Exchange filing, Bloomberg

Shares of ICICI Bank jumped over 2%, most in a week, to a record Rs 936.65 apiece.

The relative strength index of the stock is at 75, suggesting it may be overbought.

The stock has outperformed the benchmark, rising 27% in 2022 so far compare to 5% rise for Sensex.

Of the 53 analysts tracking the company, 52 maintain 'buy', one suggests 'hold'. The overall consensus price of analysts tracked by Bloomberg implies anu pside of 8.3%.

CLSA reiterated 'buy' and raised target to Rs 1,150 (implied return of 23.31%) while Morgan Stanley reiterated 'overweight/attractive', and kept target unchanged at Rs 1,225 (implied upside of 31.44%).

Source: Bloomberg

Shares of South Indian Bank surged nearly 20%, most since June 20.

• Trading volume is more than 60 times the 30-day average. The relative strength index of he stock is 87, suggesting it may be overbought.

• The bank has 76.2 million shares (aggregating to 3.6% equity) change hands in 26 large trades, according to data compiled by Bloomberg. Buyers, sellers are not known immediately

• The stock is the most traded Indian stock by volume and is the best performer on S&P BSE MidCap, S&P BSE Finance indices

Source: Bloomberg

• Fitch estimates India to grow 7% in the year ending March 2023.

• In June Fitch had estimated a growth rate of 7.8% for the year.

• FY24 growth forecast also cut to 6.7% from 7.4% before

Source: Fitch statement

India's stock benchmarks opened higher, aided by telecom, industrials, banking, metals, power stocks.

The Sensex gained 0.44% (265 points) to 60,612.25. The Nifty 50 advanced by similar magnitude to 18,089.95. Today 43 of Nifty 50 stocks rose, while seven fell. Adani Ports, Maruti Suzuki, Kotak Mahindra Bank, Shree Cement, M&M were among the top gainers.

The broader indices outperformed their larger peers, rising nearly 1%. All 19 sectoral indices compiled by BSE advanced with telecom gauge adding over 1%.

The market breadth is skewed in the favour of bulls. About 2,069 stocks rose, 546 fell and 105 remained unchanged.

• Yield on the 10-year bond fell 1bps to 7.11%, at the open.

Source: Bloomberg

• U.S. Dollar Index at 109.67

• U.S. 10-year bond yield at 3.40% on Wednesday

• Brent crude up 0.48% to $94.55 per barrel

• Nymex crude at $89.01 per barrel

• SGX Nifty down 0.03% to 17,985.5 as of 6:05 a.m

• Bitcoin up 1.33% to $20,211.7

• Rupee depreciated 9 paise to 79.53, at the open.

Source: Bloomberg

• GR Infraprojects: The company’s shareholders are offering upto 6.8% stake via offer for sale. Base offer consists of 57.04 lakh shares representing 5.9% stake and Greenshoe option of 8.7 lakh shares. Floor price is Rs 1,260 apiece, a discount of 9.3% on Wednesday's closing price. OFS will open on Sept. 15 for non-retail investors and Sept. 16 for retail investors.

• HFCL: The company has received advance purchase order of Rs 341.26 crore from Bharat Sanchar Nigam Ltd. and of Rs.106.55 crore from RailTel Corporation of India Ltd.

• KPI Green: The company has received order for executing Wind-Solar Hybrid Power Project of 4.2MW capacity from Nouveau Jewellery, Surat.

• Tata Steel: The company has approved raising of funds of Rs 2,000 crore through non-convertible debentures.

• Balaji Amines: The company completed first phase of 90-acre Greenfield Project and the di-methyl carbonate, propylene carbonate, and propylene glycol plant will be ready to commence commercial production by the end of September 2022. It also started construction in Phase 2 of Greenfield Project for Methyl Amine and Methyl Amine plants.

Asian stocks rose after their worst sell-off in two weeks. U.S. equities rebounded. The dollar was little changed.

Benchmarks in Japan, Australia and South Korea advanced. Indexes in Hong Kong and the mainland also gained after the People’s Bank of China kept its key rate unchanged. US futures climbed after the S&P 500 closed in the green thanks to dip buyers late in the session.

At 8:55 a.m., the Singapore-traded SGX Nifty--an early barometer of India's benchmark Nifty 50--traded 0.28% higher at 18,040.50 points.

Crude oil fluctuated amid optimism for demand with China easing Covid restrictions in the megacity of Chengdu.