Key benchmark indices advanced for the third straight session and attained record closing levels on Monday, supported by firm global stocks. Hopes of continued economic support by the Fed Reserve due to weak US job data and talks of more stimulus in Japan and China boosted global shares.
The barometer index, the S&P BSE Sensex, added 166.96 points or 0.29% to 58,296.91. The Nifty 50 index advanced 54.20 points or 0.31% to 17,377.80. Both the indices attained record closing levels. IT stocks rallied while realty stocks extended recent gains.
The Nifty has risen 1.77% while the Sensex has risen 1.67% in three consecutive sessions.
The Sensex hit record high of 58,515.85 while the Nifty scaled record high of 17,429.55 in early trade today.
HCL Technologies (up 2.17%), Infosys (up 1.75%), Tech Mahindra (up 0.93%) and Hindustan Unilever (up 0.57%) were major index movers today.
Index heavyweight Reliance Industries (RIL) rose 1.52% to Rs 2,424.55. The stock hit a record high of Rs 2,479.85 in intraday today.
Buying was wide spread. The BSE Mid-Cap index rose 0.18% and the BSE Small-Cap index gained 0.59%.
The market breadth was positive. On the BSE, 1691 shares rose and 1627 shares fell. A total of 177 shares were unchanged.
In the derivatives segment, the NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 3.86% to 15.105. The Nifty September 2021 futures were at 17,408, a premium of 30.2 points compared with Nifty's spot closing of 17,377.80.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 22,06,91,876 with 45,67,387 deaths. India reported 4,04,874 active cases of COVID-19 infection and 4,40,752 deaths while 3,21,81,995 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
India's foreign exchange reserves rose by $16.663 billion to touch a record high of $633.558 billion in the week ended 27 August 2021, the Reserve Bank of India (RBI) data showed. According to RBI data, forex reserves rose to a record $633.558 billion, mainly due to an increase in Special Drawing Rights (SDR) holdings.
In the reporting week ended August 27, 2021, the country's SDR holdings rose by $17.866 billion to $19.407 billion, according to weekly data released by the Reserve Bank of India (RBI) on Friday.
Foreign currency assets (FCAs), a major component of the overall reserves, fell by $1.409 billion to $571.6 billion in the reporting week. Gold reserves rose by $192 million to $37.441 billion. The country's reserve position with the IMF rose by $14 million to $5.11 billion in the reporting week, the data showed.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.173% as compared with 6.156% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.1050, compared with its close of 73.0225 during the previous trading session.
MCX Gold futures for 5 October 2021 settlement fell 0.26% to Rs 47,400.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.25% to 92.26.
In the commodities market, Brent crude for November 2021 settlement fell 48 cents at $72.13 a barrel. The contract fell 42 cents, or 0.58% to settle at $72.61 a barrel in the previous trading session.
Foreign Markets:
The US Dow Jones 30 Futures were currently up 76 points, indicating to a positive start to equities on the Wall Street today.
Shares in Europe and Asia advanced on Monday after U.S. jobs data indicated the Federal Reserve may have to keep monetary policy loose for longer, while speculation has risen over more stimulus in Japan and China.
Japanese shares climbed on hopes of better pandemic management and more spending by Prime Minister Yoshihide Suga's successor.
In the US, the Dow Jones Industrial Average retreated on Friday and the S&P 500 slipped from a record high after the August jobs report came in short of expectations, showing the impact of the delta-fueled COVID-19 resurgence.
U.S. jobs data released Friday came in far short of expectations, with the economy adding just 235,000 positions in August. Meanwhile, the unemployment rate declined to 5.2% from 5.4% in July, in line with estimates.
In a press conference on Friday, President Joe Biden touted the average monthly job gains since he took office and lower weekly jobless claims, and called for more vaccinations and for Congress to pass infrastructure and budget bills.
U.S. markets are closed on Monday for the Labor Day holiday.
Buzzing Indian Segment:
The Nifty Realty index rose 3.16% to 431.05. The index has surged 15.41% in eight sessions.
Prestige Estates Projects (up 15.92%), Oberoi Realty (up 7.14%), Brigade Enterprises (up 6.44%), Sobha (up 6.31%), Sunteck Realty (up 1.91%), Godrej Properties (up 1.37%), Indiabulls Real Estate (up 0.48%) and DLF (up 0.32%) jumped.
Stocks in Spotlight:
Tarc rose 3.78%. The company said that it has sold a part of its warehousing asset to Blackstone lnc. (BREP) for Rs 295 crore. The company plans to use a part of the proceeds to fast track the residential projects, consolidating its strategy to develop higher yielding, future ready projects.
NMDC shed 0.68%. The PSU miner reduced prices of lump ore and fines with effect from 4 September 2021. The prices of lump ore (65.5%, 6-40 mm) were reduced by 14% to Rs 6,150 per ton while the prices of iron ore fines (64%, - 10 mm) were reduced by 16.23% to Rs 5160 per ton as compared with those set on 6 August 2021.
Alembic Pharmaceuticals added 0.77%. The drug maker announced that its joint venture, Aleor Dermaceuticals, received final approval from the US drug regulator for metronidazole gel. Metronidazole gel USP is indicated for the topical treatment of inflammatory lesions of rosacea. According to IQVIA, metronidazole gel USP has an estimated market size of $29 million for twelve months ending June 2021.
Maruti Suzuki India lost 0.23%. The company announced a price change for select models owing to increase in various input costs with effect from 6 September 2021. The weighted average price increase in ex showroom prices (Delhi) across select models is 1.9%.
Hero MotoCorp advanced 0.61%. The two-wheeler major now has an expanded network of 14 full-fledged dealerships and seven authorized service centers across the country, exclusively for Harley-Davidson customers.
Ashoka Buildcon gained 1.19%. The company has received a letter of award from Adani Road Transport for six-laning of national corridor NH-19 from Pangarh to Palsit (total design length 67.750 km) in the state of West Bengal. The accepted EPC contract price is Rs 1,567.45 crore. Dr Reddy's Laboratories rose 0.32% to Rs 4914.90. The company signed a deal with Citius Pharmaceuticals, Inc. to sell its rights to anti-cancer agent E7777 (denileukin diftitox).
Engineers India gained 1.74%. The company said it secured a Rs 1,039-crore order from Chennai Petroleum Corporation (CPCL). It has been entrusted with execution of EPCM-1 with MPMC and EPCM-3 services for 9 MMTPA Cauvery Basin Refinery project in Tamil Nadu.
Mahindra & Mahindra Financial Services (M&M Financial) rose 1.72%. The company's total disbursement stood at about Rs 2,150 crore, recording a 57% Y-o-Y (year-on-year) growth, albeit on a lower base of August 2020, which was impacted by the first wave of COVID-19. The collection efficiency was reported at 97% for August 2021, further improving on 95% reported in July 2021. The collection efficiency in April 2021, May 2021 and June 2021 was 72%, 67%, 90% respectively.
Healthcare Global Enterprises (HCG) rose 1.90%. HCG announced the acquisition of oncology hospital labs and clinical trials business from Strand Lifesciences as well as simultaneous divestment of its approximately 38.5% stake (on paid-up capital basis and 34.5% on fully diluted basis) in Strand to Reliance Industries group company.
HCG received consideration of about Rs 157 crore for sale of its ownership in Strand and acquired labs and clinical research business through a business transfer agreement (BTA) from Strand for a consideration of about Rs 81 crore with a set-off of about Rs 7 crore towards receivables. The transactions resulted in net cash inflow of Rs 83 crore for HCG in addition to the take-over of the labs and clinical research business.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
