Sensex rises for 4th day, ends 225 pts higher; financial, metal stocks gain

All that happened in the markets today

Extending its gaining streak into the fourth session in a row, the benchmark S&P BSE Sensex ended 0.6 per cent, or 225 points higher at 38,407.01 levels on Tuesday, led by buying in financial counters. Further, positive global cues and Prime Minister Narendra Modi's statement that the number of active Covid-19 cases has come down also boosted investor sentiment. READ MORE

NSE's Nifty gained for the fifth straight day to settle at 11,322.50, up 52 points or 0.46 per cent. India VIX declined 5.57 per cent to 21.25 levels. 

Private sector lender Axis Bank (up 4 per cent) ended as the top gainer on the Sensex while Titan Company emerged as the biggest loser (down nearly 4 per cent) after reporting weak set of numbers for the quarter ended June 2020. 

In the broader market, the S&P BSE MidCap index ended at 14,392 levels, down 0.2 per cent while the S&P BSE SmallCap index fell 0.23 per cent to settle at 13,837. 

Among sectoral indices on the NSE, Nifty Bank rallied 1.5 per cent to 22,227.20 and Nifty Metal advanced 1.66 per cent to 2,370.65.

Global markets

World stocks inched to 5-1/2 month highs on Tuesday, lifted by bets a US fiscal stimulus package will be reached and by signs Sino-US tensions have eased ahead of a crucial round of trade talks. 

MSCI’s global equity index rose 0.4 per cent while a benchmark of Asian shares outside Japan gained nearly 1 per cent. Japan’s Nikkei climbed 1.9 per cent.

In commodities, oil prices rose. Brent crude added 29 cents, or 0.6 per cent, to $45.28 a barrel while West Texas Intermediate US crude rose 38 cents, or 0.9 per cent, to $42.32 a barrel at the time of writing of this report. 

Gold prices fell more than 1 per cent, breaking below the $2,000 level for the first time in a week, as the dollar’s relative value against other currencies strengthened and spurred investors to lock in profits following a record run.

(With inputs from Reuters)

4:06 PM

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"Indian markets continued their positive run, in spite of intraday volatility and unabated virus infections across the country. It was in sync with positive global cues, on the back of expected stimulus measures from the US, improving economic data points from China, and the first coronavirus vaccine getting registered in Russia. Indian markets continued their run on the basis of earnings results and stock-specific news, amidst hopes of another round of stimulus measures by the government. This expectation should ensure liquidity in the markets in the near term."

3:44 PM

SECTOR WATCH:: Nifty Metal index rallies 1.66%

3:42 PM

MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex

3:35 PM

CLOSING BELL

The S&P BSE Sensex rallied 225 points or 0.59 per cent to end at 38,407 while NSE's Nifty settled at 11,322.50, up 52 points or 0.46 per cent. 

3:22 PM

BUZZING STOCK:: Emami continues to soar; advances 9% in today's session

3:17 PM

BROKERAGE VIEW:: ICICI Securities on Titan Company

Titan continues to have a comfortable liquidity position due to adequate banking limits and the ability to issue commercial paper at attractive rates. As on June 30, the company is net cash surplus largely owing to the sale of excess inventory in the form of gold. Titan remains a quality franchise with strong brand patronage. Over the years, the company has consistently exhibited its ability to gain market share amid a tough industry scenario (gained market share in June & July). The robust balance sheet and asset-light distribution model have enabled Titan to outperform peers. While near term headwinds may hamper the performance of the company, we continue to remain structurally positive on the company and its long term growth prospects. We maintain HOLD with a revised target price of Rs 1,170 (52.0x FY22E EPS, previous target price: Rs 1,095).

3:07 PM

MARKET CHECK

2:50 PM

Nifty Pharma index trades lower in an otherwise firm market

2:49 PM

BROKERAGE VIEW:: Centrum Broking on DCB Bank

RATING: BUY | TARGET PRICE: Rs 131

DCB Bank’s earnings were mixed; with NII missing estimates led by weak loan growth and softer NIM (due to excess liquidity) while treasury gains and lower opex (which offset fee income decline) led to a PPoP beat of 10% to Rs1.9bn. Provisions were slightly higher with COVID-19 related being Rs0.32bn. Overall additional provisions (COVID-19 + standard asset + floating) are ~4% of the moratorium which reduced to 26% of loans as of July’20 (vs 60% in Apr’20). Collection efficiency in LAP/HL/CV is improving (over Apr-Jul’20 ~9% higher). The resolution scheme announced may not be utilised for DCB customers except in the case of corporate consortium loans. Tier-1 is healthy at ~14%. See RoA/RoE improve over FY21-22E by 32bps/3.5% to 1.1%/12.5%. Maintain multiple at 1.2x FY22ABV and TP at Rs 131. BUY

2:39 PM

RIL, HDFC twins contribute the most to Sensex's gain today

2:32 PM

MARKET UPDATE:: India VIX drops over 4.5% to 21.48 levels

2:24 PM

NEWS ALERT :: Russia has developed 'first' coronavirus vaccine: Putin

(As reported by AFP)

2:17 PM

MARKET CHECK:: BSE Energy index gains over 1.5%

2:09 PM

Rupee Closing

Rupee ends higher at 74.77 per US dollar vs Monday's close of 74.89/$

2:01 PM

SECTOR WATCH:: Telecom stocks decline in an otherwise firm market

COMPANY	LATEST(rs)	CHG(%)
VODAFONE IDEA	8.74	-3.85
BHARTI AIRTEL	555.00	-0.60
TATA COMM	848.00	-0.59