Financial stocks lift indices, Sensex gains 364 pts; Nifty ends at 11,466

All that happened in the markets today

Continuing its northward journey, the domestic stock market ended around 1 per cent higher on Monday, led by buying in private banks, and finance stocks.

The S&P BSE Sensex rallied 364 points or 0.95 per cent to settle at 38,799 levels while NSE's Nifty ended at 11,466 points, up 95 points or 0.83 per cent. Volatility index, India VIX, declined over 4 per cent to 19.12 levels. 

HDFC Bank, ICICI Bank, HDFC, and Reliance Industries (RIL) were among the major contributors to the Sensex's gains while Power Grid, Mahindra & Mahindra (M&M), and Infosys were the major drags. 

In the broader market, the S&P BSE MidCap index ended nearly 0.5 per cent higher at 15,019 levels while the S&P BSE SmallCap index outperformed the benchmark by surging nearly 1.6 per cent to 14,855.09 levels. 

Among sectoral indices on the NSE, Nifty Private Bank index gained the most - up 2.45 per cent to 12,484.50 levels. Nifty Bank climbed 533 points or 2.39 per cent to 22,833 levels. On the flip side, Nifty Realty lost 1 per cent while Nifty IT index slipped 0.3 per cent. 

Buzzing stocks

Eicher Motors surged 10 per cent to Rs 2,389 on the BSE after the stock turned ex-date for stock split in the ratio 1:10. The company has fixed August 25, 2020 as record date for the stock split. The stock ended flat at Rs 2,176.85. READ MORE
 

Shares of real estate developer The Phoenix Mills ended nearly 4 per cent higher at Rs 724.60 per share on the BSE after the company raised Rs 1,100 crore via its Qualified Institutional Placement (QIP). READ MORE

Shares of Adani Group companies rallied on the bourses on report that the group is set to acquire a 74 per cent stake in Mumbai International Airport (MIAL). 

Global markets

Equity markets gained for a second straight session on Monday as hopes for a coronavirus treatment boosted risk assets and markets geared up for the US Federal Reserve’s annual Jackson Hole meeting later in the week.

Europe’s pan-regional STOXX 600 rose 1.3 per cent and the global benchmark added 0.4 per cent after US regulators authorised the use of blood plasma from recovered patients as a treatment option.

In Asia, MSCI’s broadest index of Asia-Pacific shares ex-Japan jumped 0.8 per cent while Japan’s Nikkei added 0.3 per cent. 

In commodities, crude oil prices rose as storms closed in on the Gulf of Mexico, shutting more than half its oil production, and on signs of progress in development of a Covid-19 treatment.

Gold prices, on the other hand, dipped as coronavirus treatment hopes boosted risk appetite.

(With inputs from Reuters)

4:15 PM

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

Indian benchmark indices built up on its opening gains, with the support of global cues, and ended the day on a strong note. Following more reopening guidelines by the government, the markets chose to ignore the rising cases of infections. It instead keeps riding the positive momentum brought about by ample liquidity in the markets and expectations of the economy improving. Gains were led by banking index and especially by private banks. Investors advised to remain cautious considering the market run-up and be selective in their investments.

3:45 PM

SmallCap index outperforms benchmarks; India VIX dips 4%

3:42 PM

Nifty Bank index ends 533 points higher

3:40 PM

Heatmap: Sensex gainers and losers at close

3:39 PM

Nifty sectoral indices at close

3:38 PM

MARKETS AT CLOSE

3:37 PM

CLOSING BELL

S&P BSE Sensex ends 364 points, or 0.95 per cent, higher at 38,799, and the Nifty50 index closes 95 points, or 0.83 per cent, up at 11,466

3:29 PM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

3:28 PM

AGR Case :: Have been paying all dues pending against Airtel since acquiring Videocon spectrum in May 2016, says Sibal for Airtel

>> No demand raised for prior dues pertaining to the spectrum traded in May 2016.

>> Even if demand raised, Airtel reserves right to appeal demand in TDSAT, not for court to decide at this stage

3:24 PM

BROKERAGE VIEW:: ICICI Securities on Jubilant Foodworks

RATING: ADD | TARGET PRICE: Rs 2,100

Jubilant Foodworks started charging delivery fee (ranging from Rs21-42) from mid-July. This, in our opinion, is a significant positive in the near-term (helps mitigate the cash loss impact) and there is no real worry of negative price elasticity (consumers are not prioritising value in FY21). That said, Domino’s brand has worked hard, since 2017, to improve he reasons-to-buy of “value” which might be at risk in long-term.

3:17 PM

AGR Case :: Kapil Sibal for Airtel

>> Aircel - Airtel spectrum traded in June 2016.

 

>> Airtel paid the entire price upfront, purchased it in auction. 

 

>> No claim against Airtel, no demand raised by DOT.

>> Videocon entered IBC on June 2018, AGR judgment came from SC in Oct 2019. 

>> In May 2016, traded 1800MHz Videocon spectrum in 6 circles, no demands were raised by DOT for shared spectrum

3:16 PM

AGR Case :: License agreement, certified by President, recognises Spectrum as a security., says Ranjit Kumar for Aircel CoC

>> If spectrjm not recognized as a security that can be monetised, why would banks lend a single ruppee to telcos.

>> Telcos don't have cash reserves that that they can purchase spectrum, operate without banks. 

 

>> Economy will face negative consequences if spectrum sale under IBC not allowed.

3:16 PM

SECTOR WATCH:: Telecom stocks trade mixed

COMPANY	LATEST(rs)	CHG(%)
VODAFONE IDEA	8.93	4.69
BHARTI AIRTEL	516.60	-0.65
TATA COMM	890.70	0.07

3:11 PM

BUZZING STOCK:: Pfizer gains 6%

3:06 PM

At least 5% of PNB's Rs 7.21 trillion loan book may be restructured

India’s second largest state-owned bank Punjab National Bank (PNB) is expecting at least five per cent of its loan book to undergo restructuring. “In respect of loan book size, our rough estimate is that 5-6 per cent of the credit book may be eligible under the restructuring profile. But we will be able to get a better estimate by the end of September,” PNB managing director and chief executive officer SS Mallikarjuna Rao said in a press conference on Monday. READ MORE