Sensex, Nifty Scale New Records For Third Day On Banking, FMCG Gains

The market breadth was skewed in favour of bulls. About 1,677 stocks advanced, 1,592 declined and 156 remained unchanged

"A strong rebound in FIIs flow in last three days (bought over Rs 3,200 crore equities in two days) augured well, which led Nifty to record fresh all-time high. Unlike developed markets, faster ramp-up in vaccination process and relatively lower daily caseload offer India an edge over other markets and therefore domestic bourses are resilient despite pressure in global equities", Binod Modi, Head Strategy at Reliance Securities wrote in a note before adding that the "liquidity driven market may take a backseat in 2022 and investors must start focusing on quality aspect of companies".

• The NSE Nifty Bank logged a record 37,720.15 in intra-day trade.

• The previous record level for Nifty Bank was 37,708.75 on Feb 16, 2021.

Shares of TVS Motor Company Ltd. rose 1% in intraday trade to Rs 554 apiece before paring gains after the company announced the launch of TVS Raider in the 125 cc segment. The launch is targetted at young customers in India and across the world. The vehicle has first-in-class features like reverse LCD digital speedometer, optional 5-inch TFT cluster with Voice Assist and multiple ride modes, the company said in an exchange filing.

Starting at a price of Rs 77,500 (ex-showroom, Delhi), TVS Raider will come in a colour selection of red, blue, black and yellow.

Of the 42 analysts tracking the company, 24 maintained 'buy', 6 maintained 'hold' and 12 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.3%

India’s Directorate General of Trade Remedies has proposed the extension of anti-dumping duties on some steel products imported from China, Japan, South Korea, Russia, Indonesia, Ukraine and Brazil for 5 more years, according to notifications by the Trade Ministry.

• Imports of some cold-rolled and cold-reduced flat steel products originating in or exported from China, Japan, South Korea and Ukraine should attract an anti-dumping tax of $576 a tonne, it said in a circular

• A separate circular recommended an anti-dumping duty between $478-$561/tonne on some hot-rolled flat products from China, Japan, South Korea, Russia, Brazil and Indonesia

• India’s finance ministry will decide on the final taxes.

Lupin Settles Diabetes Drug Suit In U.S.

Shares of Cholamandalam Financial Holdings Ltd. rose 13.15%, the most in nearly 10 months, to Rs 760 apiece. Trading volume was five times the 30-day average volume at-time for this time of the day.

The relative strength index on the stock was 74, indicating that it may be overbought.

All the three analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 20.9%

Shares of Aptech Ltd. rose 4.27% to Rs 307 apiece after the company announced the launch of EdTech segment with its latest brand - ProAlley.com, from today. The brand will reach out to self-paced learners from the comfort of their homes, the company said in an exchange filing. The initial offerings will focus on media and entertainment industry, but the company planned to expand to other segments in future.

With this launch, Aptech has all forms of delivery models in its business model - Offline, Remote, Live and Self-Paced.

ProAlley.com will be funded through internal accruals at present and external funding, when needed in future.

Shares of Poonawalla Fincorp Ltd. were locked in 5% lower circuit to Rs 171.90 apiece after markets regulator SEBI restrained eight individuals including the shadow bank’s Managing Director Abhay Bhutada from participating in securities markets over alleged insider trading in the company’s shares in February.

• SEBI has also ordered the people, including Bhutada, named in its order to square off their existing positions in derivative contracts within 3 months.

• Bhutada denies “all allegations” against him in the SEBI order, and would take “appropriate legal recourse”, Poonawalla Fincorp said in a stock exchange filing late on Wednesday

• Other individuals named in the order include Saumil Shah, Surabhi Kishore Shah and Abhijit Pawar

• Poonawalla Fincorp, earlier known as Magma Fincorp, was acquired by Poonawalla Group’s Rising Sun Holding Pvt. in February via a preferential allotment of shares

• SEBI noticed insider trading alerts in the scrip around the same time the deal announcement was made, the regulator said in its order

• The investigation showed that the individuals bought significant number of shares of the company before the deal was announced and subsequently sold those to make “substantial amounts” of profit, SEBI said.

• SEBI used call data record provided by telecom service providers and other details related to trading and bank accounts to establish connection between the individuals involved.

• Borrowers seeking home loans above Rs 75 lakh would see interest rates starting from 6.7% during festive season

• Previously, loans worth Rs 75 lakh and above were charged 7.15%

• 15 basis point premium charged to non-salaried customers waived off

• Processing fee waived off for home loans

Source: SBI statement

Shares of Bharat Heavy Electricals Ltd. rose 3.54% to Rs 59.95 apiece after the company successfully commissioned India’s largest floating solar PV plant.

In an exchange filing, the company said that 25 Mega Watt project located at NTPC Simhadri in Andhra Pradesh, will produce power, reduce water evaporation to result in higher yield than conventional ground-mounted projects.

BHEL’s portfolio of floating SPV projects is the largest in the country with more than 45 MW projects commissioned and around 107 MW projects under execution.

Of the 26 analysts tracking the company, 1 maintained ‘buy’, 4 maintained ‘hold’ and 21 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 35.4%.

Ola’s Electric Scooter Sees More Than 3 lakh Bookings On Day One

Shares of Saregama India Ltd. shed 5% in intraday trade to Rs 3,984 apiece after the company approved raising of funds by further issue of securities by way of private placement or preferential issue or public issue, for an aggregate amount of Rs 750 crore. ‘

The company will convene an extra ordinary general meeting (EGM) of shareholders on October 19 to seek their approval for raising of funds.

The company also appointed Deepak Jain as the interim Chief Financial Officer with immediate effect. Deepak Jain will continue in the position till the Chief Financial Officer, who is on medical resume, resumes office.

Stock Market Unpredictable, But India's Long-Term Story Still Intact, Says Nilesh Shah

Indian lenders with exposure to the telecom carriers gain after a moratorium was approved on the service providers’ dues to the government, which improves the companies’ cash flows and ensures the near-term survival of ailing Vodafone Idea.

• Shares of IDFC First rise as much as 5.1%, their biggest single-day gain since Aug. 24

• IndusInd Bank gains as much as 12.6%, State Bank of India +2.3%, Yes Bank +11%

• IDFC First had Rs 3,240 crore of exposure to one large telecom company as of June; the loan was marked as stressed and the lender provided 15% against the outstanding, according to its quarterly presentation

Record India Stock Run Is Increasing Risks for Nation’s Economy

RBI Likes Glide Paths, Not Crash Landings, Says Deputy Governor Michael Patra

Ford’s India Exit Opens Dealers to Legal Action From Customers

Shares of Easy Trip Planners Ltd. rose 16.67% to Rs 632.79 apiece after the company expanded its international footprint by incorporating wholly-owned subsidiaries in the Philippines, Thailand and the U.S. as part of the phase 2 of the expansion strategy.

In an exchange filing, Easy Trip said that the expansion is done anticipating huge pent-up global demand for travel and tourism sector in the coming months.

The company has already established its presence across UAE, Singapore and the UK to cater to Indians travelling to these countries.

Nishant Pitti, CEO and Co-Founder of Easy Trip said that The Philippines,Thailand and the U.S. represent a significant part of the international holiday package business and expressed hope that the company is set for explosive growth internationally.

The relative strength index on the stock was 79, suggesting it may be overbought

Sansera Engineering IPO Subscription Updates: Day 3

Eight banks have joined to underwrite the private equity firm Baring’s ~$550m 5Y loan to purchase healthcare services unit from Hinduja.

Six more are in the process of joining as sub-underwriters

Source: People Familiar With The Matter

Fitch Ratings has revised the outlook on Shriram Transport Finance Company Ltd's long-term foreign and local-currency issuer default ratings (IDR) to stable from negative.

The rating has been reaffirmed at 'BB'. In its rating action commentary, Fitch identified resilient credit profile, improvement in operating metrics, steady funding access, capital adequacy, liquidity among others as the reason for the rating upgrade on Shriram Transport.

Shares of Dilip Buildcon Ltd. rose 4.46% to Rs 549.90 apiece after the company received letter of acceptance (LoA) for new HAM project - Bangalore Chennai Expressway under Bharatmala in the state of Andhra Pradesh. The bid project cost is Rs 1,060 crores, the company said in an exchange filing.

The project is expected to be completed in 24 months and the operation period is 15 years from COD (date of commissioning).

Of the 13 analysts tracking the company, 10 maintained ‘buy’, 2 maintained ‘hold’ and 1 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.4%

Shorter-term India sovereign securities declined in Thursday morning trading.

• The 4-year yield rose 1.7bps to 5.232%

• The 10-year yield fell 0.7bps to 6.156%

• The 14-year yield fell 0.5bps to 6.66%

• The 4-year-10-year yield spread was 92.4bps, vs previous close 94.9bps

Shares of Coal India Ltd. shed nearly 2%, the steepest intraday decline in nearly two weeks, to Rs 158 apiece after the company announced plans to offer 15 mines to developers to raise output by a combined 160 million tones per year. The company is also executing 35 connectivity projects, including railway lines, at a total cost of Rs 11,500 crore ($1.6 billion) to help transport 414.5 million tons of a coal a year.

Of the 28 analysts tracking the company, 21 maintained 'buy', four maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.6%.

The relative strength index on the stock was above 70, indicating it may be overbought. Trading volume was 1.7 times the 30-day average volume at-time for this time of the day.

• Shares of Castrol India Ltd. rose 4.31%, the most in 14 weeks, to Rs 143.90 apiece, higher than any close since July 26.

• Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.

• Trading volume was five times the 20-day average for this time of the day.

• Castrol India trades at 18 times its estimated earnings per share for the coming year.

• Analysts have nine 'buy', three 'hold' and two 'sell' recommendations on the stock

Shares of Sunteck Realty Ltd. rose 5.52% to Rs 449 apiece after the company announced plan to develop a 50-acre land parcel at Shahad (Kalyan).

The company would develop an aspirational luxury integrated residential township under the asset light JDA model with Amar Dye Chem Ltd. In an exchange filing before market hours Thursday, Sunteck Realty said that it expected the project to generate Rs 9,000 crore revenue over the next 7-8 years, further strengthing the cash flow and balance sheet.

This is the fourth acquisition of highly value-accretive projects by Sunteck since the advent of Covid-19 pandemic, after the project acquisitions at Vasai, Vasind and Borivali.

Trading volume on the stock was 3.5 times the 30-day average volume at-time for this time of the day. The relative strength index on the stock was 77, suggesting it may be overbought.

All the 10 analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.6%

Shares of Mahindra & Mahindra Financial Services Ltd. added 1.36% to Rs 175 apiece, after the company announced entry into vehicle leasing and subscription business under the brand name ‘Quiklyz’.

In an exchange filing, the company said that the foray was necessitated by the changing preferences of consumers who want to access vehicles earlier in life and upgrade vehicles at a more frequent rate.

Quicklyz offers consumers access to vehicle of their choice across all car brands for a monthly fee. The price is lower than regular car ownership.

Of the 37 analysts tracking the company, 19 maintained ‘buy’, 11 maintained ‘hold’ and 7 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 0.8%.

Government To Sell Up To 10% Stake In Hindustan Copper Via OFS

• The relative strength index on the stock was above 70, indicating it may be overbought.

• IndusInd Bank trades at 16 times its estimated earnings per share for the coming year.

• Analysts have 44 'buy', four 'hold' and two 'sell' recommendations on the stock.

Moratorium Will Free Up Vital Capital For Vodafone Idea’s Survival

The broader indices outperformed their larger peers with the S&P BSE MidCap largely and S&P BSE SmallCap gaining 0.6%. Barring S&P Oil & Gas index, all the other 18 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Telecom index adding over 1.3%.

The market breadth was skewed in favour of bulls. About 1,681 stocks advanced, 588 declined and 105 remained unchanged.

India bonds may open lower as a sharp spike in crude prices may raise inflation worries in the net oil-importing nation.

• FLOW WATCH: Indian govt’s offer to sell up to 10% stake in Hindustan Copper opens to non-retail investors.

• USD/INR falls 0.3% to 73.4912 on Wednesday.

• 10-year yields fell 4bps to 6.16% on Wednesday.

• Global funds buy net Rs 233 crore of Indian stocks Wednesday: NSE

  • They sold Rs 524 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 4 crore of corporate debt.

• State-run banks sold Rs 682 crore of sovereign bonds on Sept. 15: CCIL data. Foreign banks sold Rs 521 crore of bonds.

Paras Defence and Space Technologies Ltd. has set a price range of Rs 165-175 a share for its initial public offering that could raise as much as Rs 171 crore ($23.3 million), according to an advertisement in the Business Standard newspaper Thursday.

• The Navi Mumbai-based company, which makes a range of defense and space engineering products at its two plants in Maharashtra, plans to raise as much as Rs 141 crore selling new shares in the IPO.

• Its founders and shareholders are selling 1.72 million shares in an offer-for-sale as part of the IPO; founder Sharad Virji Shah is selling 1.25 million shares

• Investors can bid for minimum 85 shares of face value Rs 10 each in the sale, which opens Sept. 21 and closes Sept. 23

• Anand Rathi Advisors is the sole book running lead manager for the IPO.

Union cabinet approved a relief package for Telecom sector on Wednesday. The package includes a freeze on repayment of AGR dues and spectrum payment dues for four years. Companies opting for it will have to pay an interest at marginal cost of funds rate plus 2% starting October 1.

India’s moratorium on repayment of telecom sector dues could free up vital capital for operators, especially Vodafone Idea Ltd., that’s struggling to survive.

Union cabinet slashed the outlay for PLIs for the auto sector by half to about Rs 26,058 crore and announced incentives worth Rs 120 crore for the drone sector.

Union Minister Anurag Thakur said that the PLI scheme for auto sector will bring fresh investments of over Rs 42,500 crore in five years and increment production of over Rs 2.3 lakh crore.

Here are the two components of the scheme for auto industry

• Champion OEM Incentive Scheme, a sales value linked scheme applicable on EVs and hydrogen fuel cell vehicles.

• Component Champion Incentive Scheme, a sales value linked scheme for automotive technology components, kits, vehicle aggregates.

Sunteck Realty Ltd. plans to develop a 50-acre land parcel at Shahad (Kalyan). The company would develop an aspirational luxury integrated residential township under the asset light JDA model with Amar Dye Chem Ltd. In an exchange filing before market hours Thursday, Sunteck Realty said that it expected the project to generate Rs 9,000 crore revenue over the next 7-8 years, further strengthing the cash flow and balance sheet.

This is the fourth acquisition of highly value-accretive projects by Sunteck since the advent of Covid-19 pandemic, after the project acquisitions at Vasai, Vasind and Borivali.

Lupin Ltd. has agreed to settle the lawsuit in the U.S. alleging that the 2012 settlement of patent litigation regarding Glumetza, a drug for diabetes treatment, delayed the availability.

Lupin will pay the plaintiffs of the law suit, $150 million to Direct Purchaser Group and $98 million to the Retailer Opt-Out Group, subject to court’s approval. Lupin said that the settlement will not have a significant impact on the financial position of the company.

SREI Infrastructure Finance has announced that Rakesh Kumar Bhutoria has stepped down from the position of Chief Executive Officer (CEO) of the company.

In an exchange filing post market hours Wednesday, the company said that Rakesh Bhutoria’s resignation is effective from the close of working hours on September 15. The company will be shortly announcing a replacing for the position.

Bhutoria has stepped down due to “salary payment issues arising out of the Trust and Retention Account” the shadow lender says in its statement.

Asian stocks were steady early Thursday amid a climb in energy shares and as some of the anxiety about the recovery from the pandemic eased. Treasury yields held an advance.

Japanese and South Korean stocks fluctuated while Australia rose. U.S. futures were little changed after the S&P 500 posted the biggest jump since August, avoiding a break of its 50-day moving average. The dollar remained lower.

India’s SGX Nifty 50 Index futures for September delivery little changed at 17,534.00, while MSCI Asia Pacific Index -0.4%. The NSE Nifty 50 Index gained 0.8% on Wednesday to 17,519.45.

Oil steadied after rallying on a U.S. report showing a bigger-than-expected decline in crude stockpiles, signaling a tightening market. New Zealand’s dollar and bond yields advanced after economic growth beat estimates.

Chinese stocks listed in the U.S. slid a sixth day and U.S. casino firms with exposure to Macau tumbled. Officials have signaled tighter curbs on operators in the gaming hub, again spotlighting Beijing’s regulatory curbs.

Back home, Indian government’s offer-for-sale for up to 10% stake in Hindustan Copper to non-retail investors opens. EID Parry, Chambal Fertilisers, TV Today are holding their annual shareholders’ meeting. Foreign investors bought net Rs 1,630 crore of stocks on Tuesday, according to NSDL website.