The key equity indices rallied on Monday, supported by firm global cues. The sentiment improved after US Federal Reserve chair Jerome Powell signaled that the US central bank would remain patient in winding down its stimulus.
Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green. The Nifty closed above the 16,900 mark for the first time. Metals and pharma shares were in demand.
The barometer index, the S&P BSE Sensex, surged 765.04 points or 1.36% at 56,889.76. The Nifty 50 index added 225.85 points or 1.35% at 16,931.05. Both the indices attained record closing high levels.
The Sensex hit a record high of 56,958.27 while the Nifty hit an all time high of 16,951.50 in intraday today.
Bharti Airtel (up 4.44%), Axis Bank (up 4.15%), ICICI Bank (up 1.99%), Reliance Industries (up 1.94%) and HDFC Bank (up 1.25%) were major index movers.
The broader indices outperformed the benchmarks. The BSE Mid-Cap index rose 1.72% and the BSE Small-Cap index gained 1.55%.
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The market breadth was strong. On the BSE, 2,222 shares rose and 1,096 shares fell. A total of 179 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 21,64,13,894 with 45,01,051 deaths. India reported 3,76,324 active cases of COVID-19 infection and 4,38,210 deaths while 3,19,23,405 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
With the administration of 73,85,866 vaccine doses in the last 24 hours, India's COVID-19 vaccination coverage has surpassed the cumulative figure of 63.09 crore (63,09,17,927) as per provisional reports till 7 A.M. yesterday. India's recovery rate now stands at 97.53%.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.226% as compared with 6.254% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.2925, compared with its close of 73.6950 during the previous trading session.
MCX Gold futures for 5 October 2021 settlement fell 0.39% to Rs 47,354.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.01% to 92.68.
In the commodities market, Brent crude for October 2021 settlement fell 31 cents at $72.39 a barrel. The contract rose $1.63, or 2.29% to settle at $72.70 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Monday reflecting broadly positive trade in global markets overnight. Sentiment improved after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone than some investors expected in long-awaited speech on Friday.
Meanwhile, Beijing is reportedly looking at new rules that would restrict domestic internet firms from going public in the US.
U.S. stocks indexes closed higher Friday, with the S&P 500 and Nasdaq Composite indexes finishing at fresh peaks, following Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole central bankers' symposium.
U.S. Federal Reserve (Fed) Chair Jerome Powel on Friday during the Federal Reserve Bank of Kansas City's annual Jackson Hole economic symposium said that the Fed could start tapering asset purchases this year as the central bank is carefully assessing the risks from the Delta variant.
The Fed chief also cautioned that a move to start tapering asset purchases should not be interpreted as a sign that rate hikes would soon follow.
Fed Chair Powell said the U.S. central bank "will be carefully assessing incoming data and the evolving risks," perhaps offering himself more wiggle room before its September 21-22 meeting to digest further evidence of the health of the economy, including a coming jobs reports for August.
Buzzing Indian Segment:
The Nifty Metal index rose 2.47% to 5,628.10. The index has risen 4.13% in two sessions.
Tata Steel (up 3.80%), Coal India (up 3.43%), Nalco (up 3.18%), SAIL (up 2.71%), Hindalco Industries (up 2.31%), NMDC (up 2.20%), Jindal Steel & Power (up 2.10%), Vedanta (up 1.85%), Hindustan Zinc (up 1.85%), MOIL (up 1.39%) and JSW Steel (up 1.12%) advanced.
Stocks in Spotlight:
Auto parts suppliers Bharat Forge, Sona BLW Precision Forgings, and Sandhar Technologies jumped by 4.14% to 8.83% amid reports that the US electric-car maker Tesla Inc was in talks with at least three local companies to source critical electronic, electrical and mechanical components as part of its plans to enter the Indian market.
Bharti Airtel jumped 4.44% to Rs 620.35 after the company said its board approved a proposal to raise upto Rs 21,000 crore through rights issue of shares. In an exchange filing made on Sunday, the teleco said that its board comprehensively reviewed the industry scenario, business environment, financial/business strategy of the company and approved the company's plan to raise further capital.
Sunil Bharti Mittal was quoted by the media as saying today (30 August) that Bharti Airtel's debt is at an 'extraordinary' level and that he believes "there is an opportunity to accelerate growth. We needed access to growth capital."
Mittal reportedly estimated the ARPU (average revenue per user) to trend towards Rs 200 in this financial year and said that "it's time to raise tariffs." He also clarified that there are no plans to sell more promoter stakes as that would be 'inappropriate'.
Axis Bank jumped 4.15% after the bank said that it has initiated the process of issuing of the debt instruments, in the form of the Additional Tier-1 (AT-1) Notes in foreign currency, subject to market conditions. The issuance is part of the existing Global Medium-Term Notes (GMTN) programme of the bank.
On 27 April 2021, the board of Axis Bank had authorized the bank to borrow/raise funds in Indian currency/foreign currency by issue of debt Instruments including but not limited to long term bonds, non-convertible debentures, perpetual debt instruments, AT-1 bonds, infrastructure bonds and Tier-II capital bonds or such other debt securities as may be permitted under the guidelines issued by the Reserve Bank of India, from time to time, up to an amount of Rs 35,000 crore in domestic and overseas markets, in one or more tranches.
Maruti Suzuki India rose 2.90% after the car major on Monday said that it has planned to hike prices across models in September 2021 due to higher input costs.
Hero MotoCorp gained 1.72% after the two-wheeler major said it launched its latest motorcycle, Hero Hunk 150R, in Bangladesh. The Hunk 150R is available at an inaugural price of BDT 1,64,490 (double disc) and BDT 1,74,490 (double disc with single channel ABS), across Bangladesh at authorized dealer touch-points. Hero MotoCorp forayed into Bangladesh in April 2014 through a joint venture with Nitol Niloy Group.
Mahindra & Mahindra (M&M) advanced 2.17%. M&M said that the Ministry of Defence (MoD) has awarded a major contract to Mahindra Defence Systems (MDS) worth Rs 1349.95 crore.
Ramkrishna Forgings jumped 9.63% after the company said it bagged a letter of intent (LoI) for its warm forging business worth Rs 12 crore per annum from a major global axle manufacturer located in India.
Anupam Rasayan India rallied 2.42% after the company received and signed Letter of Intent (LoI) worth Rs 135 crore with a Japanese multinational chemical company for supplying a life sciences related speciality chemical product. The company will enter into a long-term contract with the Japanese multinational firm for next four years to supply this life science related speciality chemical product.
GOCL Corporation jumped 8.98% after the company entered into an agreement with Squarespace Infra City for sale of 44.25 acre land at Kukatpally, Hyderabad, subject to requisite approvals, for a consideration of Rs 451.79 crore. The company has received a payment of 10% of the consideration on execution of an agreement. The transaction is expected to be completed in 3 to 6 months' time.
Dalmia Bharat gained 7.25% after the company's subsidiary, Dalmia Cement (Bharat), signed three memorandum of understandings with the Government of Jharkhand to invest Rs 758 crore in the state.
Burger King India slumped 4.43%. The fast-food chain has entered into discussions regarding acquisition of a controlling stake in PT Sari Burger Indonesia, which manages and operates Burger King brand in Indonesia.
Nazara Technologies surged 6.16%. The company said that that it has acquired 100% stake in Hyderabad-based skill gaming company OpenPlay for a total consideration of Rs 186.4 crore.
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