MARKET WRAP: Sensex ends 399 pts up; Nifty reclaims 11K; IT stocks surge
All that happened in the markets today
 "BSE Sensex")
Stock brokers react to the movement share prices on BSE Sensex in Mumbai. Photo: Kamlesh Pednekar
Indian stock markets continued their gaining streak and ended over 1 per cent higher on Monday, led by buying in financial and IT counters. The S&P BSE Sensex gained 399 points over 1.08 per cent to settle at 37,418.99 levels while NSE's Nifty breached the crucial 11,000 level to end the session at 11,022, up 120.50 points or 1.11 per cent.
Telecom stocks were in focus amid the Adjusted Gross Revenue (AGR) hearing in the Supreme Court in the last hour of the trade. Vodafone Idea witnessed a highly volatile session and ended flat at Rs 8.95, up 0.79 per cent following the observations by the Supreme Court in the case. The Counsel for Vodafone Idea said in the apex court that the total revenues over 10 years were Rs 6.27 trillion, of which Rs 4.95 trillion was spent on expenses. Besides, the entire net worth of the company has been wiped out over the last 15 years.
Bharti Airtel ended nearly 2 per cent higher at Rs 578.50 on the BSE while Tata Teleservices was up 5 per cent at Rs 3.66.
Besides, HDFC Bank ended 3 per cent higher at Rs 1,132.80 on the BSE after the private sector lender reported a 20 per cent year-on-year (YoY) growth in net profit at Rs 6,659 crore for the April-June quarter (Q1FY21), supported by operational income. The stock was the biggest contributor to the Sensex's gains, followed by Infosys, ICICI Bank, Bajaj Finance, and HCL Tech.
Mahindra & Mahindra Financial Services (MMFSL) ended over 10 per cent higher at Rs 229.60 after the company said its board approved a 1:1 rights issue at Rs 50 per share, amounting to Rs 3,089 crore.
Among sectoral indices on the NSE, barring Nifty Pharma, all the other indices ended in the green. Nifty IT rallied the most - up 2.6 per cent to 17,258 levels. Nifty Bank gained 1.6 per cent to 22,321.85 levels. Nifty Pharma, on the other hand, slipped 1.6 per cent to 10,304.60 levels.
Broader markets, too, participated in the rally. The S&P BSE MidCap index rose 0.9 per cent to 13,654 points while the S&P BSE SmallCap index gained 1 per cent to 12,915 levels.
Besides, HDFC Bank ended 3 per cent higher at Rs 1,132.80 on the BSE after the private sector lender reported a 20 per cent year-on-year (YoY) growth in net profit at Rs 6,659 crore for the April-June quarter (Q1FY21), supported by operational income. The stock was the biggest contributor to the Sensex's gains, followed by Infosys, ICICI Bank, Bajaj Finance, and HCL Tech.
Mahindra & Mahindra Financial Services (MMFSL) ended over 10 per cent higher at Rs 229.60 after the company said its board approved a 1:1 rights issue at Rs 50 per share, amounting to Rs 3,089 crore.
Among sectoral indices on the NSE, barring Nifty Pharma, all the other indices ended in the green. Nifty IT rallied the most - up 2.6 per cent to 17,258 levels. Nifty Bank gained 1.6 per cent to 22,321.85 levels. Nifty Pharma, on the other hand, slipped 1.6 per cent to 10,304.60 levels.
Broader markets, too, participated in the rally. The S&P BSE MidCap index rose 0.9 per cent to 13,654 points while the S&P BSE SmallCap index gained 1 per cent to 12,915 levels.
Global market
Asian markets rose on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.14 per cent, reversing loses earlier in the day. Chinese markets rose more than 2 per cent after regulators raised the equity investment cap for insurers and encouraged mergers and acquisitions among brokerages and mutual fund houses.
South Korea’s KOSPI pared gains to fall 0.1 per cent. Japan’s Nikkei was also down 0.1 per cent after data showed the country’s exports suffered a double-digit decline for the fourth month in a row in June.
In Europe, stocks markets were cautious with the pan-European STOXX 600 index falling 0.6 per cent in the early deals.
In commodities, oil prices fell as coronavirus cases increased in many countries across the globe, but investors remained cautiously optimistic about ongoing talks over a European Union-wide recovery fund to revive economies affected by the pandemic.
(With inputs from Reuters)
4:35 PM
AGR Case :: Telcos are dragging us to a corner where we have no options, observes SC
>> Telcos should be reasonable in seeking time
4:30 PM
AGR Case :: 7-10 yr period would be reasonable to repay AGR dues, Tata Tele to SC
4:27 PM
AGR Case :: Telcos should share responsibility to secure the amount payable.
>> Revenue of the country needs to be saved, observes SC
4:26 PM
AGR Case :: Telcos should seek a reasonable period for payout
>> 20 years, sought by DoT, is too long a period, doesn't seem reasonable
4:26 PM
AGR Case :: If telcos don't secure the dues payable, how can we allow installment wise payments? SC observes
>> Says, 4 companies are in insolvency, almost Rs 40,000 cr of dues are sought from them
>> Says, Telcos are behaving dishonestly
>> Says, Telcos are behaving dishonestly
4:23 PM
AGR Case :: Just tell us how will you pay and what security are you giving for the payment?, asks SC from Tata
>> Says, We will not consider any plea for financial difficulty
4:14 PM
AGR Case :: This is a waste of our time, we will impose very heavy costs, observes SC
>> Will decide on limited issue of time to be provided
>> We will impose more costs on telcos than any other court before.
>> We will impose more costs on telcos than any other court before.
>> Telcos are trying to seek recalculation, trying to dilute the judgment.
4:12 PM
Market Closing Comment :: Vinod Nair, Head of Research at Geojit Financial Services
The Indian benchmark indices exhibited volatility, tracking earnings results and the SC AGR hearing. Nifty continued its momentum and closed above the 11,000 mark. This was in spite of increasing virus infections, both in India and abroad. The earnings results declared so far have been positive, as the sectoral leaders, especially in the IT and Banking sector, have emerged better than expected in a quarter that was considered to be a washout, in terms of business. These 2 indices were also the main gainers in today’s trade. Uptrend may continue but it will be stock specific and investors seem to be looking at the earnings commentary for further direction
4:11 PM
AGR Case :: Bharti Airtel, Tata argue that dues payable should be limited to only license fee dues
>> Airtel, Tata seek lower due payable, argue that SUC dues should not be included in the DoT demand
4:01 PM
AGR Case :: Bharti Airtel is looking to reopen the issue, will not permit this at this stage, observes SC
>> If we permit you to recalculate, it would be violation of our orders
>> AGR definition has been clarrified by SC, don't try to review the issue.
>> AGR definition has been clarrified by SC, don't try to review the issue.
4:00 PM
AGR Case :: If we are found to be wrong, we will pay the amount demanded by DoT, SC, says Singhvi for Bharti Airtel
3:58 PM
AGR Case :: Dues payable by us should be Rs 21,000 cr, not Rs 43,989 cr as claimed by DoT, says AM Singhvi for Bharti Airtel
>> DoT has clubbed SUC dues to amounts claimed.
>> AGR judgment of SC was only w.r.t to license fee dues, not SUC.
Alert: SUC is spectrum usage charge
>> AGR judgment of SC was only w.r.t to license fee dues, not SUC.
Alert: SUC is spectrum usage charge
3:50 PM
AGR Case :: Solicitor General presents information on dues received so far
>> Bharti Airtel has paid Rs 18,004 cr, Balance is Rs 25,976 cr
>> Voda Idea has paid Rs 7,854 cr, Balance is Rs 50,399 cr
>> Tata has paid Rs 4,197 cr, Balance is Rs 1,2601 cr.
» More
(Telecom stocks at close)| COMPANY | LATEST(rs) | CHG(rs) | CHG(%) |
|---|---|---|---|
| VODAFONE IDEA | 9.04 | 0.16 | 1.80 |
| BHARTI AIRTEL | 575.75 | 8.40 | 1.48 |
| TATA COMM | 701.55 | 33.40 | 5.00 |
3:44 PM
AGR Case :: Don't try to re-open the case, all dues are included in the AGR judgment, says SC to Bharti Airtel
>> No room availible for adjustment of dues payable by Airtel.
>> Solicitor General says, As per DOT, Bharti Airtel owes a sum of Rs 43,780 cr
>> Solicitor General says, As per DOT, Bharti Airtel owes a sum of Rs 43,780 cr
3:39 PM
AGR Case :: Have paid Rs 18,000 cr after SC order, 60% of total dues paid by all telcos combined so far, says Abhishek Manu Singhvi for Bharti Airtel
>> Have Rs 21,000 cr of dues still payable towards license fee dues.
>> Govt has wrongly sought Rs 43,000 cr of total AGR dues, demand includes SUC dues as well.
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First Published: Jul 20 2020 | 7:36 AM IST
