The key equity indices snapped a four-day losing streak and ended with strong gains on Monday. The barometer index, the S&P BSE Sensex, surged 533.74 points or 0.91% to 59,299.32. The Nifty 50 index added 159.20 points or 0.91% to 17,691.25.
Value buying emerged after the Sensex fell 2.18% and the Nifty fell 1.81% in the past four trading sessions. Traders lapped up shares ahead of RBI's monetary policy meet and earnings season that is set to kick off this week.
All the sectoral indices on the NSE ended in the green. Metals, PSU banks and realty shares rallied. IT shares bounced after a recent correction.
In the broader market, the S&P BSE Mid-Cap index rose 1.51% while the S&P BSE Small-Cap index gained 1.71%. Both these indices outperformed the Sensex.
Buyers outpaced sellers. On the BSE, 2,333 shares rose and 1,016 shares fell. A total of 192 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.76% to 16.74.
Also Read
The Reserve Bank of India's (RBI) monetary policy committee (MPC) is scheduled to meet during 6th to 8th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021.
IT major TCS (up 1.36%) will announce its Q2 results on Friday, 8 October 2021.
Infosys (up 0.85%) will announce Q2 results on 13 October 2021.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee fell to 74.31 from its previous closing of 74.1275.
MCX Gold futures for 5 October 2021 settlement fell 0.01% to Rs 46,283.
The yield on India's 10-year benchmark federal paper was at 6.25%.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.09% to 93.95.
In the commodities market, Brent crude for December 2021 settlement fell 19 cents or 0.24% to $79.47 a barrel.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 233,713,190 with 4,782,640 deaths. India reported 264,458 active cases of COVID-19 infection and 448,997 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 90,73,60,198 COVID-19 vaccine doses have been administered in the country so far, with over 23.39 lakh doses being given yesterday, according to the Co-WIN dashboard.
Economy:
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has called upon the NRIs and Indian diaspora to invest in India unhesitatingly. Addressing the Indian People's Forum (IPF) Business Conclave in Dubai on 3 October 2021, Goyal said this is the right time for India's vast expatriate community to invest in their motherland. There is a great opportunity in extraordinary growth in India. Goyal underlined that the 3.4 million strong Indian diaspora in the UAE acts as a bridge between the two countries.
Global markets:
Shares in Europe and Asia were mixed on Monday, amid concerns surrounding inflation, Federal Reserve tapering and rising interest rates.
Trading in the Hong Kong-listed shares of China Evergrande was halted on Monday as investors continue to monitor the situation surrounding the indebted developer as it faces a maturing bond with little wiggle room for payment. The property giant has missed two bond interest payments in the past weeks.
Investors will look out for the comments from OPEC+ which meets virtually amid a spiral higher in crude prices.
US stocks surged on Friday, boosted by positive economic data, progress in the battle against COVID, and Washington developments on the potential passage of an infrastructure bill.
Merck and Ridgeback Biotherapeutics announced Friday they've developed a drug which reduces the risk of hospitalization or death by around 50% in Covid patients. If authorized by regulatory bodies, the drug could be the first oral antiviral medicine for Covid. The companies plan to seek emergency authorization for the antiviral Covid treatment after the medicine showed compelling results in clinical trials.
Stocks in Spotlight:
Divis Laboratories jumped 8.08%. The stock was in demand after US pharmaceutical major Merck and Ridgeback Biotherapeutics announced the early results from Phase-3 trials that its anti-viral drug molnupiravir halved the chances of hospitalisation in COVID-19 patients with mild or moderate disease.
On 26 May 2021, Divi's Laboratories had informed that it was selected by Merck as an authorized manufacturer for the active pharmaceutical ingredient (API) of molnupiravir. Divi's Labs has been allowed to supply the API to Merck's VL partners in India.
Deepak Nitrite jumped 8.99% to Rs 2594.40. The counter hit a record high of Rs 2618.35 in intraday today. The media reported that the power outage in China is seen impacting chemical output by as much as 25%, which could benefit Indian speciality chemical makers.
Reliance Industries (RIL) rose 1.31%. RIL has incorporated a wholly owned subsidiary, Reliance International (RINL), in Abu Dhabi Global Market, United Arab Emirates. The unit will undertake activities relating to, amongst others, trading of crude oil, petroleum products, petrochemicals and agricultural commodities. RINL is yet to commence its business operations.
Bharti Airtel rose 1.22% at Rs 681.10. The telecom major's rights issue will open on Tuesday, 5 October 2021 and close on Thursday, 21 October 2021.
A total of upto 39,22,87,662 shares will be offered as part of the rights issue. The rights shares will be issued at Rs 535 per fully paid-up share. Eligible investors will receive one share for every 14 shares held as on the record date.
Bharti Airtel will raise upto Rs 20,987.39 crore assuming full subscription and receipt of all call monies with respect to rights equity shares.
NTPC added 4.08% on reports the state-run company expects to raise Rs 15000 crore through initial public offerings in three units. The media reported that the state-run generator plans to sell shares in NTPC Renewable Energy (NREL) within a year. A listing of hydropower unit North Eastern Electric Power Corporation (NEEPCO), which it bought last year, and power trading arm, NTPC Vidyut Vyapar Nigam (NVVN), are planned for early 2024, reports added.
Further, NTPC is also looking to sell its stake in NTPC-SAIL Power Co., a joint venture with Steel Authority of India, for supplying electricity to the steel maker's mills and townships, reports suggested.
However, NTPC has denied the news report and added that no such negotiations took place.
Grasim Industries fell 1.99%. The Deputy Commissioner of Income Tax has imposed a capital gain tax on the company of Rs 8,334 crore related to a sale of shares in group firm Aditya Birla Capital during tax assessment year 2018-19. The company said it will take appropriate action against the said order which it believes is against the spirit of tax laws.
Hero MotoCorp added 0.30%. The company dispatched 530,346 units of motorcycles and scooters in the month of September 2021. The company dispatched 7,15,718 units in September 2020.
Eicher Motors fell 0.95%. The company's total motorcycles sales declined 44% to 33,529 units in September 2021 from 60,331 units in September 2020.
Coal India rose 0.66%. The company's coal production in September rose 0.4% year-on-year to 40.7 million tonnes (MT) as compared with 40.5 MT recorded in the same period last year. Offtake has improved by 3.6% year-on-year to 48.3 MT in September 2021 from 46.7 MT in September 2020.
Yes Bank rose 1.79%. The bank said (provisional) loans & advances rose 3.6% to Rs 172,945 crore as on 30 September 2021 from Rs 166,923 crore as on 30 September 2020. The private bank's deposits increased by 30.1% year on year and 8.2% quarter on quarter to Rs 176,672 crore as on 30 September 2021.
CSB Bank advanced 2.93%. The bank said that its total deposits increased 9% to Rs 19,061.62 crore as on 30 September 2021 from Rs 17,468.44 crore as on 30 September 2020. Gross advances increased by 12.09% to Rs 14,304.14 crore as on 30 September 2021 from Rs 12761.80 crore as on 30 September 2020. Advances against Gold & Gold Jewellery, aggregated to Rs 5441.44 crore (up 10.17% YoY) as on 30 September 2021.
Avenue Supermarts added 0.36%. The company said its standalone revenue from operations rose 46.6% to Rs 7,649.64 crore in Q2 September 2021 over Q2 September 2020. The company, which owns and operates retail chain D-Mart, reported a revenue from operations of Rs 5,218.15 crore in the same quarter last year, the company informed in a regulatory filing. In the pre-pandemic Q2 September 2019, Avenue Supermarts reported a revenue of Rs 5,949.01 crore.
Pfizer gained 1.25%. The company has entered into a business transfer agreement with Mylan Pharmaceuticals to transfer certain primarily off-patent branded and generic established medicines business (Upjohn Business) as a going concern to Mylan for Rs 180.48 crore.
Adani Green Energy added 2.18% after the company announced the completion the acquisition of SB Energy Holdings in an all-cash deal. The transaction pegs SB Energy India at an enterprise valuation of $3.5 billion (approx. Rs. 26,000 crore) and marks the largest acquisition in the renewable energy sector in India.
SB Energy India has 5 Giga Watt renewable assets across four states in India through its SPVs. The acquisition boosts Adani Green Energy's operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW.
Generic Engineering Construction and Projects jumped 13.41% after the company said it secured new work orders worth Rs 180.38 crore for various institutional projects.
Sona BLW Precision Forgings rose 2.15%. The company's wholly-owned subsidiary Sona Comstar eDrive has executed a collaboration agreement with Israel's IRP Nexus Group to develop, manufacture, and supply a magnet-less drive motor and the matching controller for performance two-wheelers and three-wheelers for the global market. The term of the agreement is for seven years.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content