The domestic equity benchmarks ended with strong gains on Thursday. The Nifty closed tad below the 17,800 mark after hitting the day's high of 17,857.55 in afternoon trade. Traders lapped up shares ahead of RBI's monetary policy outcome and Q2 earnings season that is set to kick off on Friday, 8 October 2021.
As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 488.10 points or 0.82% to 59,677.83. The Nifty 50 index added 144.35 points or 0.82% to 17,790.35.
In the broader market, the S&P BSE Mid-Cap index rose 1.68% while the S&P BSE Small-Cap index gained 1.38%. Both the indices outpaced the benchmarks.
The market breadth favoured the bulls. On the BSE, 2237 shares rose and 1066 shares fell. A total of 140 shares were unchanged.
The Reserve Bank of India's (RBI) monetary policy committee (MPC) began its two-day policy meet on 6th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021.
IT major TCS (up 2.15%) will announce its Q2 results on Friday, 8 October 2021.
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Infosys (up 1.04%) will announce Q2 results on Wednesday, 13 October 2021.
Among telecom shares, Bharti Airtel (up 0.20%) advanced while Vodafone Idea (down 1.31%) declined.
The government on Tuesday notified its decision to permit 100% foreign direct investment (FDI) under automatic route in the telecom services sector.
Till now, only 49% of FDI was allowed through the automatic route and anything beyond it had to mandatorily go through the government route.
In a press note, the Department for Promotion of Industry and Internal Trade (DPIIT) said foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 236,467,427 with 4,827,642 deaths. India reported 244,198 active cases of COVID-19 infection and 449,856 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 92,58,17,589 COVID-19 vaccine doses have been administered in the country so far, with over 42.91 lakh doses being given yesterday, according to the Co-WIN dashboard.
Buzzing Segment:
Shares of ONGC, GAIL (India) and Oil India corrected after oil witnessed some correction in the international markets after a sharp rally. The correction was triggered by higher than expected U.S. crude stockpiles and comments from Russia, offering to ease a natural gas crisis.
ONGC tumbled 4.46% to Rs 160.60, GAIL (India) fell 3.91% to Rs 159.80 and Oil India slipped 2.38% to Rs 242.40.
U.S. crude inventories expanded by 2.35 million barrels last week, according to government data. U.S. gasoline stockpiles rose by around 3.3 million barrels last week, while distillate inventories slipped by 396,000 barrels, according to data from the Energy Information Administration. Crude supplies at the key storage hub in Cushing, Oklahoma, expanded for a second week.
Russian President Vladimir Putin reportedly said record volumes of natural gas could potentially be exported to Europe this year as the continent faces an energy crunch. Gas prices fell after his remarks.
Oil rallied to the highest since 2014 this week as an energy crunch from Europe to Asia raised the prospect of greater demand for crude and oil products ahead of winter, while OPEC+ said it would restore only a relatively modest amount of supply to the market in November as planned.
The Nifty Oil & Gas index shed 0.27% to 7,995.80.
Stocks in Spotlight:
Titan Company jumped 10.60% to Rs 2,375.35. The company said its jewellery segment revenue jumped 78% year on year (YoY) in Q2 FY22. CaratLane's business revenue jumped 95% year on year in Q2 FY22. The watch segment revenue grew by 73% YoY in Q2 FY22. Eye wear segment revenue surged by 74% YoY in Q2 FY22.
Mahindra & Mahindra (M&M) spurted 5.29% to Rs 878.25. M&M started bookings of its XUV700 model today. The company said it clocked 25,000 bookings in 57 minutes of its booking commencement. Bookings will now reopen starting 10 am on 8th October.Reliance Industries added 0.88% to Rs 2582.80. RIL informed that Reliance Retail Ventures (RRVL) through its wholly owned subsidiary, 7-India Convenience Retail Limited, has entered into a master franchise agreement with 7-Eleven, Inc. for the launch of 7-Eleven convenience stores in India.
Sobha surged 15.87% to Rs 878.85. The company's new sales rose by 50.62% to 13.48 lakh square feet in Q2FY22 versus 8.91 lakh square feet in Q2FY21. Total sales value jumped 49.32% to Rs 1,030.2 crore in Q2 FY22 from Rs 689.9 crore in Q2 FY21. The company achieved best-ever quarterly sales volume of 13.48 lakh square feet of super built-up area. It also achieved best ever Sobha share of sale value of Rs 854.2 crore. Average cost of borrowing has further come down during the quarter.
Macrotech Developers soared 6.09% to Rs 1118.80. The company's pre-sales jumped 109% quarter on quarter and 88% year on year to Rs 2,003 crore in Q2 FY22. Collections grew by 12% quarter on quarter and 73% year on year to Rs 1,912 crore in Q2 FY22. The company's net debt for India business stood at Rs 12,508 crore, which is around the same level as Q1. The company estimates that the net debt will be at Rs 10,000 crore at the end of fiscal year in the India business.
Balaji Amines fell 1.11% to Rs 4589.30. The company said that a small incident took place at the company's unit III demethylformamide (DMF) plant which caused leakages/breakdown. While rectifying this the company added some debottlenecking activities to increase capacity. During this period, the DMF plant will not be in operational.
Kalyan Jewellers India jumped 13.22% to Rs 80.10. The company said it saw continued robust momentum in both footfalls and revenue across all its markets in India and Middle East in Q2 FY22. The jewellery retailer said it witnessed revenue growth of about 60% for its India operations during the recently concluded quarter, as compared to the same period in the previous year. Kalyan's online jewellery platform, Candere, recorded a revenue growth of about 45% during the quarter, compared to the same period during the last year.
NIIT advanced 2.31% to Rs 356.70. Sutherland, a U.S.-based global digital transformation company, and StackRoute, an NIIT Venture, have entered into a partnership to launch an immersive training program designed to identify the right talent and develop them as high-quality full stack IT professionals, handling critical roles at Sutherland.
Ramkrishna Forgings jumped 4.12% to Rs 1150.85. The company signed a Memorandum of Understanding (MoU) with a US based technology partner for the development of electric vehicle powertrain components for the Indian EV market.
Global markets:
US Dow Jones futures were up 200 points, indicating a positive opening in the US stocks.
Shares in Europe and Asia advanced on Thursday. Sentiment turned positive after US stocks staged a comeback from their lows as investors bought the dip in technology names.
Wall Street ended higher on Wednesday as investors grew more optimistic that congressional Democrats and Republicans could reach a deal to avert a government debt default.
US private payrolls increased more than expected in September as COVID-19 infections started subsiding, boosting hiring at restaurants and other high-contact businesses. Private payrolls increased by 568,000 jobs last month, the ADP National Employment Report showed. Data for August was revised lower to show 340,000 jobs added instead of the initially reported 374,000.
Investors are awaiting payrolls data due Friday, with investors anticipating that a reasonable figure will mean the US Federal Reserve will begin tapering its massive stimulus programme at its November meeting.
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