Sensex, Nifty Close Little Changed After Nearing Record

The broader indices almost mirrored their larger peers with the S&P BSE MidCap closing unchanged and S&P BSE MidCap slipping 0.13%. Eleven of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Auto index gaining over 3%. On the flipside, S&P BSE Information Technology index shed over 2.3%.

The market breadth was skewed neither in favour of bulls nor bears. About 1,643 stocks advanced, 1,704 declined and 189 remained unchanged.

• Shares of Mahindra & Mahindra Ltd. rose 4.4% in intraday trade, the most in nearly 19 weeks, to Rs 813.75 apiece. Mahindra & Mahindra shares have risen for the fifth consecutive session.

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

• The company trades at 21 times its estimated earnings per share for the coming year.

• Analysts have 36 'buy', no 'hold' and five 'sell' recommendations on the stock.

Brent futures climb 1.4% to $79 a barrel, while WTI futures hit $75 a barrel for the first time since July, amid an escalating energy crunch across Europe and now China.

Source: Bloomberg

CMR Green Technologies Ltd. seeks to raise as much as Rs 300 crore($40.7 million) selling new shares in an initial public offering, while its shareholders plan to sell as many as 33.4 million shares in an offer-for-sale as part of the IPO, according to its draft prospectus.

• The metal recycler may consider a pre-IPO placement of as much as Rs 60 crore; new share sale in the IPO will be lower if the pre-IPO sale happens

• ICICI Securities, Axis Capital and JM Financial are the banks managing the IPO

• CMR Green Tech has 12 manufacturing facilities, of which 10 facilities undertake aluminum recycling operation

• Equitas Small Finance Bank Ltd. has 5.29 million shares change hands in two bunch trades.

• Buyers and sellers are not immediately known

Source: Bloomberg

• India has set up a panel of state ministers to review the Goods and Services Tax in a bid to boost collections and overhaul the system.

• The panel will be headed by Chief Minister of Karnataka Basavaraj Bommai and includes finance ministers of Kerala, Uttar Pradesh and West Bengal.

• Merging of tax rate slabs and measures to rationalise the GST framework on the agenda.

Source: People With Knowledge Of The Matter

• Shares of HCL Technologies Ltd. shed 4.21% in intraday trade, the most in 10 months, to Rs 1,301 apiece in intraday trade.

• Trading volume was 49% above the 20-day average for this time of the day.

• HCL Tech trades at 26 times its estimated earnings per share for the coming year.

• Analysts have 42 'buy', four 'hold' and three 'sell' recommendations on the stock.

India Stocks to Move Sideways Post Sharp Rally, Says Nirmal Bang

Shares of JK Cement Ltd. fell for the seventh straight day, on track for the longest losing streak since the period ended Oct. 11, 2018.

JK Cement has lost a total of 9.4% during the streak while the S&P BSE Sensex Index rose 1.7%. Today, the stock fell 1% to Rs 3,103.05 apiece in intraday trade.

Shares of Easy Trip Planners Ltd. rose 6.5% to Rs 631 apiece after the company announced agreement worth $10 million with InterGlobe Technology Quotient, a travel technology provider. The agreement pertains to the provision of access to InterGlobe Technology Quotient’s travel commerce platform – Travelport (1G). The two companies have collaborated since 2009

• Shares of Amara Raja Batteries Ltd. rose 3.7% in intraday trade, the most in eight weeks, to Rs 763 apiece. Trading volume was five times the 20-day average for this time of the day.

• Shares of Amara Raja Batteries crossed 100-day moving average in intraday trade, on high trading volume.

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

• Analysts have 12 ‘buy’, five ‘hold’ and three ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.8%.

Nucleus Software Exports Ltd. has announced that its offline retail payment product, PaySe has been successfully evaluated by RBI. PaySe’s offline payment solution was used to digitize the Self Help Group centered ecosystem and was tested for P2M (person to merchant) transactions in Tier 6 located between November 16, 2020 and February 15, 2021 by the central bank. In an exchange filing, Nucleus Software said that RBI stated that PaySe may be considered viable for wider adoption for rural masses.

The company has also approved buyback of 22.67 lakh equity shares, comprising of 7.81% of the total paid-up equity capital of the company, at Rs 700 each for an aggregate amount of Rs 158.71 crore.

• Shares of Reliance Industries rose to a new record Rs 2,526 apiece in intraday trade

• Reliance Industries’ market capitalization crossed Rs 17 lakh crore

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

Bosch India trades at 39 times its estimated earnings per share for the coming year.

Of the seven analysts tracking the company, three maintained ‘buy’, two maintained ‘hold’ and two maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 0.3%.

IndusInd Bank has announced partnership with Vistara to launch a co-branded credit card. The credit card named ‘Club Vistara IndusInd Bank Explorer’ empowers customers to travel to international destinations in a cashless manner and offers travel benefits including complimentary business class air ticket, Club Vistara Gold membership, lounge access at 600 airports globally and zero-foreign currency mark-up on international spends, IndusInd Bank said in an exchange filing.

• India’s Supreme Court deferred hearing a petition by market regulator Securities and Exchange Board of India against PNB Housing Finance Ltd.’s plan to raise Rs 4,000 crore ($543 million) from Carlyle Group Inc. to October 18.

• PNB Housing’s lawyer urged the court to decide the case expeditiously saying the company needs to raise funds

• Shares of Bank of Baroda rose over 2% to Rs 79.6 apiece, in intraday trade.

• According to Bloomberg, Bank of Baroda had 1.36 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known

• Of the 36 analysts tracking the company, 27 maintained ‘buy’, six maintained ‘hold’ and three maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.8%

Shares of hotels and tourism companies like Indian Hotels Ltd. and Chalet Hotels Ltd. advanced as the Covid-curbs are being eased gradually across several states in the country.

Indian Hotels Co. shares rose nearly 10% to Rs 196.4 apiece. Trading volume was 3 times the 30-day average volume for this time of the day. The relative strength index on the stock was 78, suggesting it may be overbought.

Shares of Chalet Hotels Ltd. advanced over 13% to Rs 245 piece. Trading volume was 9.3 times the 30-day average volume for this time of the day. The relative strength index on the stock was 83, suggesting it may be overbought.

Indian bonds are lower on a spike in crude prices and U.S. yields. Traders are waiting on details of the fiscal second-half borrowing calendar due this week.

• USD/INR steady at 73.63

• 10-year yields rose 2bps to 6.2%; 5-year yield up 2bps to 5.68%

• Shares of Patel Engineering Ltd. rose 13.90% in intraday trade, the most in nearly six weeks, to Rs 18.85 apiece after the company bagged an order worth Rs 1,251 crore for 500 Mega Watt Teesta-VI Hydro Electric project, Sikkim from Lanco Teesta Hydro Power Ltd, a wholly owned subsidiary of NHPC Ltd.

• In an exchange filing, Patel Engineering said that the project included civil works for underground power house and transformer cavern in the hydro electric project in South Sikkim.

• Shares of Equitas Small Finance Bank Ltd. rose 2.62% to Rs 60.8 apiece in intraday trade.

• 1.87 million shares change hands in bunched trade.

• Buyers and sellers are not known immediately.

• Trading volume on the stock was 17.4 times the 30-day average volume for this time of the day.

• Of the 12 analysts tracking the company, 11 maintained ‘buy’ and one maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.9%

Shares of Manali Petrochemicals Ltd. hit 5% upper circuit to Rs 111.95 apiece, after the company entered into a MoU with Econic Technologies for introducing more environment friendly Carbon Dioxide containing polyols into the $28 billion global polyols market. Polyols are organic compounds used as sweeteners in food.

In an exchange filing, Manali Petrochemicals said that the memorandum of understanding pertained to the scale up of the company's catalyst technology to substitute fossil-based raw materials with captured waste Carbon Dioxide to produce polyols.

Trading volume was 5.6 times the 30-day average volume for this time of the day.

Most yields along the India sovereign yield curve rose, with 5-year bonds moving the most in Monday morning trading.

• The 5-year yield rose 3bps to 5.68%

• The 10-year yield rose 1.9bps to 6.2%

• The 14-year yield rose 2.1bps to 6.715%

• The 5-year-10-year yield spread was 52bps, vs previous close 53.1bps

Shares of SJVN Ltd. climbed over 5%, the most in 10 weeks to Rs 28.35 apiece after the company secured 1000 Mega Watt Solar PV Power Project worth Rs 5,500 crore. In an exchange filing post market hours Friday, SJVN said that it bagged the full quoted capacity of 1000 MW at a viability gap funding support of Rs 44.72 lakh per MW by Government of India.

The project, floated by Indian Renewable Energy Development Agency Ltd. (IREDA), is expected to generate 2,365 Mega Unit in first year. The cumulative energy generation over a period of 25 years would be about 55,062 MU. Mega Unit or MU is one million units of electricity in which one unit is equivalent to 1 Kilowatt hour.

The projects will aid SJVN to achieve its ambitious targets of 5000 MW by 2023, 12,000 MW by 2030 and 25,000 MW by 2040, respectively, besides significantly contributing to the renewable energy capacity addition target of 175 GW by 2022, set by Government of India.

Both the analysts tracking the company maintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.4%.

Trading volume on the stock was 5.2 times the 30-day average volume for this time in the day. Shares of SJVN crossed 50-day simple moving average in intraday trade, indicating potential upward price momentum.

• Shares of Coforge Ltd fell nearly 5%, the steepest decline in almost eight weeks, to Rs 5,375 apiece.

• Trading volume on the stock was almost the same as the 20-day average for this time of the day.

• Coforge trades at 48 times its estimated earnings per share for the coming year.

• Analysts have 16 'buy', six 'hold' and five 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied a downside of 7.7%

Invesco Renews Demand for Zee Entertainment Board Reshuffle

Shares of Biocon Ltd shed over 2% to Rs 358.5 apiece after the company informed in an exchange filing Saturday that the U.S. Food and Drug Administration issued a Form 483 with a total of six observations across drug substance, drug product and devices facilities at Biocon’s Malaysian subsidiary Biocon Sdn. Bhd. U.S. FDA had conducted an on-site pre-approval inspection of the manufacturing facility for Insulin Aspart between September 13 and 14.

Biocon said that it is confident of addressing the observations through procedural enhancements within the stipulated time and stated that the outcome of the inspection would have not impact the commercialization plans for Insulin Aspart.

Of the 22 analysts tracking the company, 11 maintained ‘buy’, five maintained ‘hold’ and six maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.9%.

Piramal Enterprises Ltd. has approved the issuance of Secured, Rated, Listed, Redeemable, Principal Protects, Market-Linked non-convertible debentures on private placement basis.

The size of the issue will be up to Rs 200 crore along with an option to retain over subscription of up to Rs 200 crore, thereby aggregating to Rs 400 crore. The tenure of the instrument is 30 months and the coupon rate is 8% per annum. The coupon shall be linked to underlying reference on final observation date, Piramal Enterprises said in an exchange filing.

Shares of Piramal Enterprises Ltd. rose 2.11% to Rs 2,826 apiece. 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 1.4%.

Shares of United Breweries Ltd. declined over 3% to Rs 1,553.1 apiece after the competition commission of India passed an order against the company imposing a penalty of Rs 751.83 crore for alleged anti-competitive conduct in the beer market in India.

Besides United Breweries, CCI also penalized Carslberg India, All India Brewers’ Association and certain individuals. CCI found the companies engaged in price co-ordination in contravention with Competition Act, 2002.

United Breweries said it will evaluate filing an appeal after examing the CII order and finding grounds for appeal.

Of the 16 analysts tracking the company, 11 maintained ‘buy’, three maintained ‘hold’ and 2 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.1%

Trading volume on the stock was 2.3 times the 30-day average volume for this time of the day.

• Shares of NBCC India Ltd. rose over 5% to Rs 48.75 apiece after the company announced post market hours Friday that it bagged an order worth Rs 968.50 crore from Maldives.

• The order pertains to the construction of 2000 social housing at Hulhumale on EPC basis.

• Of the four analysts tracking the company, two maintained ‘hold’ and two maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12%.

• Trading volume on the stock was 6.7 times the 30-day average volume for this time of the day.

Godavari Biorefineries Ltd. seeks Sebi approval to raise as much as Rs 370 crore selling new shares, while its shareholders plan to sell up to 6.56 million shares in an initial public offering, according to its draft prospectus.

• Selling shareholders include founders Samir Shantilal Somaiya and Somaiya Agencies Pvt. selling 500,000 shares each; investor Mandala Capital AG Ltd. offering up to 4.93 million shares

• The Mumbai-based producer of ethanol and ethanol-based chemicals, sugar and power is considering a pre-IPO placement to raise Rs 100 crore; fresh share issue in the IPO will be lower if the pre-IPO sale happens

• Equirus Capital and JM Financial will manage the issue

PVR, Inox Shares Soar On Maharashtra Cinema Hall Reopening Plan

• NSE Nifty Bank Index hits a record high of 38,190.25.

• Nifty Bank Index had hit a previous record of 38,112.75 on September 17.

The market breadth was skewed in favour of bulls. About 1,586 stocks advanced, 657 declined and 138 remained unchanged.

India’s Banks Must Turn to Markets for Funds, Sitharaman Says

Indian bond traders will look forward to details of the fiscal second-half borrowing calendar due this week. Sovereign bonds may open lower on a spike in crude prices and U.S. yields.

• Officials from the Reserve Bank of India and the Finance Ministry are scheduled to meet Sept. 27 to decide on government’s borrowing program for second the half of fiscal year starting Oct. 1, people with the knowledge of the matter said.

• India originally planned a debt sale of Rs 12.1 lakh crore ($164 billion) this year. It later announced raising an additional Rs 1.58 lakh crore to compensate states for a shortfall in a nationwide consumption tax collection, although it’s yet borrow that amount

• USD/INR little changed at 73.6913 on Friday

• 10-year yields rose 4bps to 6.18% on Friday

• RBI will buy Rs 15,000 crore of bonds as part of its GSAP on Sept. 30; will sell an equivalent amount of shorter paper due to current liquidity conditions

• Global funds buy net Rs 442 crore of Indian stocks Friday: NSE

  • They bought Rs 390 crore of sovereign bonds under limits available to foreign investors, and added Rs 139 crore of corporate debt

All You Need To Know Going Into Trade On September 27