MARKET WRAP: Indices gain for 3rd day, Sensex up 86 pts; PSU banks rally

All that happened in the markets today

The benchmark indices ended in the positive territory for the third consecutive session on Wednesday, led by buying in Reliance Industries (RIL), HDFC Bank, ICICI Bank, and Bharti Airtel. 

The S&P BSE Sensex ended at 38,615 levels, up 86 points, or 0.22 per cent with Tech Mahindra (up around 2 per cent) being the top gainer and Bajaj Auto (down over 1 per cent) the biggest loser. NSE's Nifty ended at 11,408, up 23 points or 0.20 per cent. India VIX, the volatility gauge, dropped another 2 per cent to 19.96 levels. 

The sectoral trend on the NSE was mostly positive. Nifty Media rallied the most - up over 5 per cent to 1,550.50 levels. Nifty PSU Bank gained over 2 per cent to 1,462.45 points. On the other hand, Nifty FMCG slipped 0.44 per cent to 31,586.05 points. 

In the broader market, the S&P BSE MidCap index ended at 14,741.42, up 0.6 per cent while the S&P BSE SmallCap index gained over 1 per cent to 14,318 levels.

Buzzing stocks

Shares of Dilip Buildcon surged 10 per cent to Rs 418.05 on the BSE after the company announced that its Joint Venture with Hindustan Construction Company (HCC) has received a letter of acceptance (LoA) from Rail Vikas Nigam Limited for a new project worth Rs 1,334.95 crore in Uttarakhand. The stock ended at Rs 405.20, up over 6.5 per cent. READ MORE

CSB Bank zoomed 14.4 per cent to Rs 227.85 on the BSE after the bank's net profit grew 174.1 per cent on a yearly basis to Rs 53.56 crore in June quarter of FY21, as against Rs 19.54 crore in Q1FY20. In the March quarter of FY20, the bank had incurred net loss of Rs 59.68 crore. The stock settled at Rs 225.45, up over 13 per cent. READ MORE
 

Reliance Industries (RIL) ended nearly 0.7 per cent higher at Rs 2,133 on the BSE after the Mukesh Ambani-owned conglomerate on Tuesday announced the acquisition of a majority equity stake in Chennai-based online pharmacy delivery startup Netmeds (Vitalic Health Pvt. Ltd) for a cash consideration of approximately Rs 620 crore. READ MORE
 

Global markets 

European stocks edged up on Wednesday as a record high for US stocks outweighed simmering worries over a resurgence in coronavirus cases that could undermine a nascent recovery. The broad Euro STOXX 600 gained 0.1 per cent in choppy trading, with indexes from Frankfurt to London making slim gains.

MSCI’s broadest index of Asia-Pacific shares outside of Japan fell 0.2 per cent, after initial support from an S&P 500’s charge to a record high powered by looser policy and charging tech stocks.

Wall Street futures pointed to slim gains.

In commodities, oil prices eased on concerns that US fuel demand may not recover as quickly as expected amid stalled talks on an economic stimulus package, overshadowing a bigger-than-expected drawdown in US crude stocks.

(With inputs from Reuters)

3:50 PM

Market Closing Comment :: Vinod Nair, Head of Research at Geojit Financial Services

Ever present fears regarding the Covid-19 impact on economic recovery brought about volatility in the global markets, despite US markets surging to record highs. Indian indices also exhibited this volatility before closing the day with a positive bias. Banking index again led the gains. The gains in the Indian market, as in the global markets, have been driven by ample liquidity and the expectation of normalisation of business supported by government measures, in a post covid-19 scenario. However, investors must continue to remain stock specific and use the accumulation strategy for the time being.

3:45 PM

Heatmap: Top Sensex gainers and losers at close

3:43 PM

Nifty sectoral indices at close

3:40 PM

MARKETS AT CLOSE

3:38 PM

AGR Case :: Sale of spectrum is allowed under trading guidelines, observes SC

>> But how can spectrum be sold under IBC? All resolution transactions must be as per IBC.

3:36 PM

MARKETS AT CLOSE

The S&P BSE Sensex ends 86 points, or 0.22 per cent, higher at 38,615, and the Nifty50 index settles 23 points, or 0.2 per cent, higher at 11,408

3:36 PM

AGR Case :: DOT had refused to grant nod to Jio-R.Comm spectrum sale agreement, despite TDSAT judgment in favour of R.Comm, says Salve

>> Not the right stage for SC to decide the issue of sale of spectrum.

>> Issue of sale of spectrum is to be decided by the DoT.

>> Even possible for UVARC to back out of bid with DoT now saying that spectrum sale can't be allowed under IBC

3:29 PM

Economists agree on massive GDP contraction, differ widely on the extent

Economists and various agencies have pegged the contraction in gross domestic product (GDP) in the range of 13.6-35 per cent in the first quarter of 2020-21. The National Statistics Office (NSO) is slated to release the official number at the end of the current month. READ MORE

3:24 PM

AGR Case :: Spectrum can be sold only with the DOT nod, says Salve

>> If resolution plan succeeds, DOT will decide on sale of spectrum at that stage, let Govt decide.

3:21 PM

Cabinet Decisions :: All banks, NBFCs allowed to offer loans to MSMEs at discounted rates

3:20 PM

AGR Case :: Not seeking to sell the spectrum, but only looking to transfer the right to use, says Salve

3:18 PM

AGR Case :: How can telcos sell spectrum if they only have a right to use and don't own them, observes SC

3:14 PM

AGR Case :: Spectrum is recorded as an asset, by virtue of having been purchased in an auction, argues Harish Salve

>> Telcos own the right to use the spectrum, an extremely valuable right of the telcos.

>> Nobody's case that spectrum is owned by anyone else other than the Govt. 

 

>> License merely transfer the right to use, that right involves payments.

3:13 PM

MARKET UPDATE:: Sensex off day's high, turns flat

3:13 PM

Cabinet Decisions :: Jaipur, Guwahati and Thiruvananthapuram Airports to be given to pvt players

>> To be given on lease for operation, development and maintenance for 50 years