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The S&P BSE MidCap underperformed its broader peers, adding 0.16% while S&P BSE SmallCap outperformed with gains of nearly 1%. Twelve of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Energy index rising over 2.6% and S&P BSE Information Technology index gaining nearly 2%.
The market breadth was skewed in favour of bulls. About 1,870 stocks advanced, 1,431 declined and 152 remained unchanged.
"RBI policy meeting outcome was quite balanced; and it continued to sound dovish despite announcing measure of absorb excess liquidity through VRRR auctions. Further, expectations of CPI inflation and economic growth look reasonable, and market continued to cheer RBI policy meet outcome", Binod Modi, Head Strategy at Reliance Securities wrote in a note and added "India’s sovereign rating upgrade by Moody’s Investors Services in the backdrop of persistent improvement in key economic indicators and faster ramp-up in vaccination bodes well and may aid India to remain resilient compared to global equities. Further, steady rise in disbursal of banks and NBFCs in 2QFY22 (as shown in their provisional numbers reported to exchanges) vindicates growth momentum of the economy. In our view, festive demand, recovery in rural demand, COVID-19 positivity rates, vaccination ramp-up and September quarter earnings will be in focus in the near term."
Zee Vs Invesco: NCLAT Says Zee Should Be Given Reasonable Time To File A Reply
Indian bourses rally after capital market and electricity sector regulators agree to resolve jurisdiction issues to allow deepening of the country’s power market, paving way for longer-duration contract offerings.
Power regulator CERC agreed to regulate all the physical delivery-based forward contracts whereas the financial derivatives will be regulated by the Securities and Exchange Board of India, according to a statement issued Thursday
Resolution of these issues allows introduction of longer duration delivery-based contracts in the power exchanges, which are currently restricted to allow such contracts for maximum of 11 days due to the pending legal matter, power ministry says in a statement
Shares of Chambal Fertilizers and Chemicals Ltd. rose over 19% in intraday trade to Rs 448 apiece. Trading volume was quadruple the 20-day average volume, for this time of the day.
The relative strength index on the stock was above 70, indicating it may be overbought.
Chambal Fertilizers trades at 11 times its estimated earnings per share for the coming year.
Analysts have four ‘buy’, no ‘hold’ and no ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4%.
Shares of Chambal Fertilizers have risen nearly 30% over the last two sessions after the National Stock Exchange announced inclusion of these stocks in Futures & Options segment from October 29.
Bharti Airtel Ltd. unveiled a cashback offer on over 150 budget smartphones from leading brands ahead of billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd. introducing its Google co-engineered budget handset before Diwali in November.
To avail the Rs 6,000 ($80) cashback on smartphones priced as much as Rs 12,000, a customer will need to buy a so-called prepaid mobile services pack of Rs 249 or above continuously for 36 months, India’s No.2 wireless phone operator said in a statement Friday. The customer will receive the cashback in two parts - Rs 2,000 after 18 months and Rs 4,000after 36 months.
Mukesh Ambani’s technology services company Jio Platforms Ltd. said last month it and Google have made considerable progress toward launching a budget smartphone - JioPhone Next -- and are actively working to make it available in time for the Diwali festive season. Both have indicated plans to achieve a breakthrough price for the proposed smartphone.
The cashback offer is expected to intensify competition in a market that was disrupted by Reliance Jio’s entry in 2016 with free calls and cheap data leaving many incumbents to exit, merge or file for bankruptcy.
Airtel said if a customer opts for a device priced at Rs 6,000, they can get back their entire investment.
Equity mutual funds see net inflow of Rs 8,677.4 crore in September compared with inflow of Rs 8,666.7 crore in August.
Multi-cap funds: Inflow of Rs 3,569.4 crore vs outflow of Rs 17.5 crore in August
Large-cap funds: Inflow of Rs 13.9 crore vs outflow of Rs 78.6 crore in August
Mid-cap funds: Inflow of Rs 1,350.9 crore vs inflow of Rs 161.9 crore in August
Small-cap funds: Outflow of Rs 248.7 crore vs outflow of Rs 162.7 crore in August
Overnight funds: Inflow of Rs 16,312 crore vs outflow of Rs 11,807.7 crore in August
Liquid funds: Outflow of Rs 48,379.1 crore vs outflow of Rs 714.1 crore in August
Money market funds: Outflow of Rs 8,433.4 crore vs inflow of Rs 2,048.2 crore in August
Credit risk funds: Inflow of Rs 396.5 crore vs inflow of Rs 102.8 crore in August
Total net outflow of Rs 47,257.3 crore vs net inflow of Rs 32,976.7 crore in August
Average AUM: Rs 37.4 lakh crore in September vs Rs 36.1 lakh crore in August
Source: AMFI
India’s rupee led declines in emerging Asian currencies as traders await the release of a key U.S. jobs report. A gauge of regional stocks rose, while bonds fell.
10-year U.S. Treasury yields extended gains on Friday, rising to the highest since June amid persistent inflation concern. The U.S. payrolls report Friday will help determine how soon the Federal Reserve will start tapering bond purchases.
India’s rupee underperformed Asian peers as the RBI left its benchmark repo rate unchanged at a record low; said it sees no need to continue its bond-buying program.
Shares of Reliance Industries rose nearly 4% to a record Rs 2,674.4 apiece.
Shares of tourism-related stocks rose after the government said it will start granting fresh tourist visas for foreigners.
Foreign tourists coming via chartered flights will be allowed from Oct. 15 while tourists entering India by flights other than chartered aircrafts will be permitted from Nov. 15, the government said in a statement on Thursday
Shares of Thomas Cook India Ltd. rose 20% in intraday trade to Rs 85 apiece before paring some of the gains. Thomas Cook also expanded its footprint in Gujarat with the launch of a new Gold Circle Partner franchise outlet in Surat.
In an exchange filing, Thomas Cook said that with this expansion, the company’s distribution and reach in Gujarat is 10 consumer access centres. In addition to the Gold Circle Partner Outlet, Thomas Cook has launched TravShield to cover support the safety of the customers.
Shares of Indian Railway Catering and Tourism, Indian Tourism Development, Mahindra Holidays, Indian Hotels, Lemon Tree Hotels and EIH all advanced in trade.
Motherson Sumi Systems Ltd. has acquired majority stake in Bengaluru-based CIM Tools Pvt, a leading supplier in aerospace supply chain. The acquisition marks Motherson Sumi’s foray into the aerospace industry.
In an exchange filing, Motherson Sumi said will be acquire 55% stake from promoters of CIM Tools Pvt. The three founders of CIM will retain 45% stake.
CIM, which is engaged in machining and sub-assembly of components for the aerospace industry, has Rs 1,500 crore+ cumulative booked business potential currently.
Motherson Sumi’s entry into aerospace segment is in-line with its growth strategy, as outlined in Vision 2025, the company’s five-year roadmap. The proposed transaction is expected to be closed within three months, subject to regulatory approvals.
Shares of KPI Global Infrastructure Ltd. rose over 9% to Rs 140.95 apiece after the company signed a new long-term Power Purchase Agreement (PPA) with GHCL Limited. In an exchange filing post market hours Thursday, KPI Global said that the PPA pertains to the sale of 1.25 Mega Watt of solar power for a period of 20 years, under independent power producer (IPP) business vertical.
Trading volume on the stock was 2.7 times the 30-day average volume, for this time of the day.
Shares of KPI Global crossed above the 50-day simple moving average, indicating potential upward price momentum.
Mobikwik receives SEBI approval for Rs 1,900 crore IPO
Mobikwik expected to launch IPO in 3-4 weeks
IPO includes Rs 1,500 crore worth fresh issue of shares and Rs 400 crore offer for sale
Source: Person In The Know
Housing Development Finance Corp Ltd. has sold 1.38 million shares of Ansal Housing Ltd., representing 2.33% of the paid-up share capital on October 7, the company said in an exchange filing.
Earlier, HDFC had informed the exchanges about the invocation of 4.62 million shares of Ansal Housing, aggregating to 7.78% of its paid-up share capital, for recovery of part of outstanding dues against loans availed by Ansal.
Of the 40 analysts tracking the company, 37 maintained ‘buy’ and three maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.6%.
Shares of Nazara Technologies Ltd. rose 19.24% in intraday trade to Rs 3,224.3 apiece after the gaming company announced plans to raise Rs 315 crore ($42m) by issuing shares to investors.
The company will issue up to 1.4 million to investors Gamnat Pte and Plutus Wealth Management at Rs 2,206 apiece via preferential allotment, according to a company statement after trading hours on Wednesday.
Nazara shares have risen ~65% in last one month vs 3% rise in benchmark Sensex. Of the six analysts tracking the company, four maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 25.7%.
The relative strength index on the stock was 90, suggesting it may be overbought. Trading volume was 6.7 times the 30-day average trading volume, for this time of the day.
Shares of Dhanlaxmi Bank Ltd. shed 2.37% in intraday trade, to Rs 16.5 apiece. The lender shared its September quarter business updates with the exchanges Friday.
Total Deposits in Q2 came in at Rs 11,907 crore, up 4.12% YoY (up 2.14% QoQ)
CASA at Rs 3,994 crore, up 11.85% YoY (up 3.50% QoQ)
CASA ratio at 33.54%, up 2.32% YoY
Gross Advance at Rs 6,970 crore, down 1.27% YoY
Gold loan at Rs 1,719 crore, up 4.43% YoY (down 5.65% QoQ)
Total business at Rs 18,877 crore, up 2.06% YoY (up 1.63% QoQ)
Shares of Bandhan Bank Ltd. rose over 6% to Rs 348.3 apiece, higher than any close since April 9, after the company approved the allotment of 3,273 equity shares of face value of Rs 10 each to eligible employees of the Bank upon options vested with them under the ESOP Series 1, the company said in an exchange filing.
Trading volume of the stock was five times the 20-day average volume, for this time of day.
The relative strength index on the stock was above 70, suggesting it may be overbought.
Bandhan Bank trades at 18 times its estimated earnings per share for the coming year. Analysts have 22 ‘buy’, three ‘hold’ and four ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 1.7%.
Motherson Group Company, Samvardhana Motherson Automotive Systems Ggoup BV, announced the acquisition of a majority stake in Nanchang JMCG Mekra Lang Vehicle Mirror Co. Ltd. by Ningbo SMR Huaxiang Automotive Mirrors Ltd. Ningbo SMR Huaxiang is a 50:50 JV in China under its subsidiary Samvardhana Motherson Reflectec.
The deal is expected to be completed in three months from the date of signing, Motherson Sumi said in an exchange filing.
Nanchang JMCG is engaged in the manufacturing of automotive mirrors for PVs, pick-up trucks, and light and heavy commercial vehicles in China.
Lincoln Pharmaceuticals Ltd. received approval from Australia’s medicines and medical devices regulator – Therapeutic Goods Administration for all tablet, capsule and cream & ointment segments of the company’s manufacturing facility in Khatraj, Gujarat. The approval is expected to cover wide range of pharmaceutical formulations manufactured by Lincoln Pharma, the company said in an exchange filing.
Lincoln Pharma intended to enter Australian markets with its dermatology, gastro and pain management products and expand its product portfolio soon. The certification from TGA will be valid till June 2023. The company had earlier received European Union GMP certification from Germany’s FDA.
India’s sovereign yield curve steepened while the rupee pared losses after the central bank unexpectedly ended its bond purchase program.
10-year yields rose 4bps to 6.3%; 5-year bond was little changed at 5.71%.
India’s central bank surprised markets by suspending its version of quantitative easing, signaling the start of tapering pandemic-era stimulus measures as an economic recovery takes hold.
The six-member Monetary Policy Committee also decided to keep the benchmark repurchase rate at 4%, as predicted by all 34 economists in a Bloomberg survey. The reverse repo rate was kept unchanged. The panel voted 5-1 to retain the accommodative stance, Governor Das said.
USD/INR gains 0.3% to 75; rose as much as 0.5% earlier.
We do not imitate other central banks, says Shaktikanta Das, Governor, RBI
Our decisions are motivated by domestic circumstances
We don't feel G-SAP at the moment is necessary
At the moment, the total quantum under fixed rate reverse repo window, is about Rs 4-4.5 lakh crore
Even in first week of December, the quantum expected is Rs 2-3 lakh crore
It (closing G-SAP) is not a steep reduction of liquidity available in the system
Don't think there is any surprise in the announcements we have made
All that we are doing, with the VRRR announcement, is following the roadmap we have already set
Fine tuning of operations will depend on how the situation evolves
Source: Shaktikanta Das, RBI Governor at RBI Media Briefing
Shares of The Mandhana Retail Ventures Ltd. shed over 9% to Rs 13.35 apiece after Rakesh Jhunjhunwala trimmed his shareholding in the company in tranches. The ace investor sold over 8.5 lakh shares in the company through open market transactions from Tuesday to Thursday. Rakesh Jhunjhunwala’s shareholding in the company stands at 2.40% right now compared to 6.26% earlier.
Trading volume on the stock was 4.3 times the 30-day average volume for this time of the day. Shares of Mandhana Retail crossed below the 200-day simple moving average, indicating potential downward price momentum.
RBI’s announcement of complete QE tapering and an expansion of its variable reverse repo rate auctions is a clear sign that liquidity normalization is on the way, Nomura economist Aurodeep Nandi wrote in note.
While the cyclical growth recovery is ongoing, upside risks to inflation have increased, especially with the latest surge in commodity prices.
A reverse repo hike is likely next month to normalize the policy corridor, followed by a pivot to rate hikes in 202.
RBI files petition with Kolkata NCLT to refer SREI Infrastructure Finance and SREI Equipment Finance under Insolvency & Bankruptcy Code
RBI had superseded the boards of these companies on Monday and appointed an administrator to run affairs
Source: Person In The Know
Shares of Danube Industries Ltd. rose 1.5% to Rs 61.25 apiece after the company announced that it entered into exclusive consignee and forwarding agreement with Prolong Professional Cosmetics Pvt. Ltd.
Trading volume on the stock was 2 times the 30-day average volume, for this time of the day. The relative strength index on the stock was 88, suggesting it may be overbought.
Polycab India Shares Gain On HSBC Global's 'Buy' Rating
Shares of Ratnamani Metals & Tubes Ltd. rose over 4.5% to Rs 2,300 apiece after the company secured a new order worth Rs 98 crores, excluding GST.
In an exchange filing post market hours Thursday, Ratnamani Metals said that the order pertained to the supply of carbon steel pipes for domestic Oil & Gas sector and will be executed within 5-12 months.
All the five analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.9%.
Grasim Industries Ltd. has 3.15 million shares change hands in a bunched trade
Details of buyers and sellers are not immediately known
Source: Bloomberg
Shares of Piramal Enterprises Ltd. shed over 5.5% in intraday trade, the steepest intraday decline in nearly six months, to Rs 2,728 apiece.
The company had announced plans to segregate its pharmaceutical and financial services businesses to unlock the potential value of each vertical and streamline the group structure.
According to an exchange filing during trading hours Thursday, the board at its meeting decided:
To demerge Piramal Pharma Ltd. from Piramal Enterprises Ltd.
Merge Convergence Chemicals Pvt. and Hemmo Pharmaceuticals Pvt., wholly owned arms of the pharma unit, into Piramal Pharma.
Merge PHL Fininvest Pvt., a wholly owned subsidiary of Piramal Enterprises, into the parent.
The scheme is subject to the approval of the requisite majority of the shareholders and creditors of the companies, and regulatory authorities such as SEBI, BSE, NSE and National Company Law Tribunal.
Of the six analysts tracking the company, five maintained ‘buy’ and one maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.4%. Trading volume on the stock was 3.1 times the 30-day average volume for this time of the day.
Shares of Trident Ltd. rose 4.94% to Rs 34 apiece after the company launched its direct-to-consumer website, myTrident.com on Thursday to mark the festive season.
The new webside features top quality products from Trident group ranging from towels, bedsheets etc. Customers can avail of up to 55% discount on myTrident.com. The company also plans to announce more exciting discount offers during Diwali, Trident said in an exchange filing.
All the three analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 30.2%.
The relative strength index on the stock was 80, suggesting it may be overbought. Trading volume of 1.6 times to 30-day average volume for this time of the day
The India sovereign yield curve steepened in Friday morning trading.
The 4-year yield fell 4.6bps to 5.302%
The 10-year yield rose 1.7bps to 6.284%
The 14-year yield rose 1.2bps to 6.795%
The 4-year-10-year yield spread was 98.2bps, vs previous close 92bps
India’s stock benchmark headed for a record high as the central bank said it will remain accommodative even as the economy recovers.
The S&P BSE Sensex rose as much as 0.8% to 60,127.62, while the NSE Nifty 50 Index gained by a similar magnitude as both tracked toward new highs. All except three of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of information technology companies.
Policy makers said further bond purchases under the government securities acquisition program won’t be needed. The yield on the benchmark 10-year note climbed 3bps to 6.30%. The decision to hold the repurchase rate at 4% matched the expectation of all economists surveyed by Bloomberg.
Bajaj Auto Ltd. has informed that Soumen Ray has resigned from the position of Chief Financial Officer of the company. In an exchange filing, the company announced that Ray resigned to explore other opportunities and his last day in the company will be December 20, 2021.
The company is in the process of identifying and appointing the successor to Soumen Ray.
RBI MPC Meet: Repo, Reverse Repo Rates Left Unchanged
Shares of Oberoi Realty Ltd. advanced 4.54% to Rs 980 before paring gains, after the company reported a 100% YoY increase in sales in the September quarter to Rs 823.52 crore.
In its business update filed with the exchanges post market hours Thursday, Oberoi Realty said that the units booked in Q2FY22 came in at 200, over 300% increase from the Q2FY21.
ICICI Securities has downgraded the stock to ‘hold’ from ‘buy’ and revised the target price to Rs 938 from Rs 792.
ICICI Securities said that the Q2 sales bookings with no launches is close to Q4 sustenance sales and expect the company to clock Rs 3,500 crore of sales bookings in FY22E and over Rs 4,500 crore in FY2023-24E. New launches and inventory in Worli, Mulund and Borivali projects would aid the sales bookings, the brokerage firm noted. The rationale for the downgrade was due to the sharp appreciation in stock price over the last three months and highlighted that the possibility of decline in demand for residential properties remained a key downside risk.
Of the 29 analysts tracking the company, 20 maintained ‘buy’, four maintained ‘hold’ and five maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.9%.
Shares of MRF Ltd. rose 3.78%, the most in over 12 weeks, to Rs 84,346.25 apiece. Trading volume was six times the 20-day average for this time of the day.
MRF trades at 27 times its estimated earnings per share for the coming year.
Of the 11 analysts tracking the company, five maintained 'buy', two maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1%.
Shares of JSW Energy Ltd. Rose 2.6% to Rs 389 apiece after the company signed a contract with GE Renewable Energy for the supply of 810 Mega Watt of onshore wind turbines. The turbines would be used for JSW Energy’s under-construction pipeline of 2.5 Giga Watt of renewable projects in India. In an exchange filing, JSW Energy said that the supply of turbines will begin by the second quarter of calendar year 2022. The turbines are expected to produce enough green energy to meet the annual electricity demands of more than 2.1 million households in India.
Of the 14 analysts tracking the company, four maintained ‘buy’, one maintained ‘hold’ and nine maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 61.2%.
The relative strength index on the stock was 76, suggesting it may be overbought.
Shares of Tata Motors jumped 5.59% in intraday trade to a 52-week high of Rs 397.55 apiece after a Times of India report said that the company is seeking to buy Ford’s units in southern Indian state of Tamil Nadu and Gujarat in the west, citing people it didn’t identify.
Ford’s manufacturing plants could help Tata Motors augment capacity as it focuses on eco-friendly vehicles.
The Indian vehicle maker has no manufacturing plants in Tamil Nadu, it has one right next to Ford’s production unit in Gujarat.
Tamil Nadu state government is also keen to find a buyer for Ford’s plant to protect jobs.
A Tata Motors spokesperson said Chairman N. Chandrasekaran had a courtesy meeting with Tamil Nadu Chief Minister M.K. Stalin but declined to share details of the discussions.
A Ford India spokesman told the newspaper it continues to explore possible alternatives for manufacturing facilities and wouldn’t comment on speculation.
Separately, the Economic Times reported that TPG is in advanced talks with the Tata group to invest $1 billion-$1.5billion in its electric vehicle unit, citing unidentified people.
Of the 32 analysts tracking the company, 21 maintained 'buy', six maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 4%. The relative strength index on the stock was 80, suggesting it may be overbought. Trading volume on the stock was 7 times the 30-day average volume, for this time of the day.
The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap gaining over 0.5%. Barring S&P BSE Realty index, all the other 18 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Auto index gaining over 1.4%.
The market breadth was skewed in favour of bulls. About 1,766 stocks advanced, 514 declined and 91 remained unchanged.
India NCLT to hear Zee-Invesco case.
AMFI to share mutual fund industry data for September and outlook.
India’s automakers will be in focus after a report said Tata Motors is seeking to buy Ford’s units in Tamil Nadu and Gujarat states.
Ford’s manufacturing plants could help Tata Motors augment capacity as it focuses on eco-friendly vehicles, the Times of India reported, citing people it didn’t identify.
Separately, the Economic Times reported that TPG is in advanced talks with the Tata group to invest $1 billion-$1.5billion in its electric vehicle unit, citing unidentified people.
In Focus: Tata Motors, Maruti Suzuki, Mahindra, Motherson Sumi, Ashok Leyland, Bosch.
Tata Motors is seeking to buy Ford’s units in southern Indian state of Tamil Nadu and Gujarat in the west, The Times of India reported citing people it didn’t identify.
Ford’s manufacturing plants could help Tata Motors augment capacity as it focuses on eco-friendly vehicles.
The Indian vehicle maker has no manufacturing plants in Tamil Nadu, it has one right next to Ford’s production unit in Gujarat.
Tamil Nadu state government is also keen to find a buyer for Ford’s plant to protect jobs.
A Tata Motors spokesperson said Chairman N. Chandrasekaran had a courtesy meeting with Tamil Nadu Chief Minister M.K. Stalin but declined to share details of the discussions.
A Ford India spokesman told the newspaper it continues to explore possible alternatives for manufacturing facilities and wouldn’t comment on speculation.
Q2 Results Preview: IT Revenue To Rise For Fifth Straight Quarter, Pressure Looms On Margins
Indian Central Bank May Signal Stimulus Pullback: Decision Guide
Tata Consultancy Services Ltd. will be competing with other companies for a share of $50 billion information technology procurement contracts offered by U.S.’s National Institute of Health, the Economic Times reported citing official documents.
India’s largest software exporter will bid through its U.S. unit Tata America International for a share in the 75 to 125 contracts under the Chief Information Officer-Solutions and Partners 4 offer.
TCS did not reply to queries sent by the newspaper: ET
Stocks of companies involved in cultivation of cotton and manufacturing of yarns may be in focus as the commodity has climbed near a fresh decade high on tight global supply.
In Focus: Yarn and cloth makers such as KPR Mill, Indo Count, seed maker Kaveri.
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