The broader market surged after the Securities and Exchange Board of India (SEBI) on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021.
The S&P BSE Mid-Cap index was up 2.13% while the S&P BSE Small-Cap index jumped 4.18%.
Gainers outnumbered losers. On the BSE, 1864 shares rose and 642 shares fell. A total of 164 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,175.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 724.31 crore in the Indian equity market on 11 September, provisional data showed.
Broader market Gainers:
Mphasis (up 10.13%), Crompton Greaves Consumer (up 6.7%), Aditya Birla Fashion (up 6%), Bharat Electronics (up 5.77%), Oberoi Realty (up 5.4%) and Voltas (up 5.19%) were top mid-cap gainers.
KPIT Tech (up 16.16%), MCX (up 14.3%), Blue Star (up 14%), Persistent Systems (up 13.6%) and APL Apollo (up 12.27%) were the top small-cap gainers.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.18% to 20.26. The Nifty September 2020 futures were trading at 11,565.10, at a premium of 5.65 points compared with the spot at 11,559.45.
The Nifty option chain for 17 September 2020 expiry showed maximum Call OI of 23.38 lakh contracts at the 11,600 strike price. Maximum Put OI of 30.50 lakh contracts was seen at 11,400 strike price.
The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 20.30 lakh contracts at the 12,000 strike price. Maximum Put OI of 28.15 lakh contracts was seen at 11,000 strike price.
Economy:
The Ministry of Commerce & Industry announced Wholesale Price Index (WPI) for August 2020. The annual rate of inflation, based on monthly wholesale price-based inflation (WPI), increased 0.16% from a year earlier in August 2020, after a 0.58% decline in July 2020. The index rose 1.17% during the corresponding month of the previous year.
The government will announce CPI numbers later today.
SEBI Ruling:
To achieve the desired objective of true to label and appropriate benchmarking, SEBI issued a circular dated 11 September 2020 on multi cap schemes of mutual funds, requiring them to invest a minimum of 25% each in large, mid and small cap stocks, with the balance 25% giving flexibility to the fund manager.
SEBI on 13 September 2020 clarified that mutual funds have many options to meet with the requirements, based on the preference of their unit holders. Apart from rebalancing their portfolio in the multi cap schemes, they could facilitate switch to other schemes by unit holders, merge their multi cap scheme with their large cap scheme or convert their multi cap scheme to another scheme category, for instance Large cum mid cap scheme.
SEBI is conscious of market stability and therefore has given time to the mutual funds till 31 January 2021 to achieve compliance, through its preferred route of which rebalancing of the portfolio is only one such route.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 28,902,170 with 9,22,735 deaths. India reported 9,86,598 active cases of COVID-19 infection and 79,722 deaths while 37,80,107 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. India's recovery rate has improved to 77.88%. The COVID-19 case fatality rate has further dropped to 1.65%.
Stocks in Spotlight:
JBM Auto jumped 5.83% to Rs 244.90 after the company said it bagged an order from Delhi Integrated Multi-Modal Transit System (DIMTS) for supplying 116 BS6 AC low floor CNG buses. JBM Auto will be supplying 116 Citylife BS6 buses to operator which will be running under the DIMTS Cluster in New Delhi. Deliveries of the first batch of these buses shall start this month end onwards, the company said during trading hours today, 14 September.
Indoco Remedies surged 7.59% to Rs 238 after the drug maker said it received US drug regulator's approval for Apixaban tablets, used as blood thinner. The products are therapeutically equivalent to the Reference Listed Drug 'Eliquis' of Bristol-Myers Squibb (BMS). The US market size of Apixaban tablets is $11.037 billion as per IMS MAT June 2020 data.
ICICI Lombard General Insurance Company rose 1.69% to Rs 1,320.95 after the company said it has entered into a Bancassurance tie-up with Yes Bank. The partnership will provide the bank's diverse customer base access to the insurer's portfolio and make insurance more accessible to its customers across India. Through this tie-up, ICICI Lombard aims to offer innovative insurance solutions to Yes Bank's customers across 28 states and 8 Union Territories. The announcement was made during market hours today, 14 September 2020.
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