The key equity indices ended with strong gains on Monday. As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 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.
Among the sectoral indices, metals, pharma, PSU banks, realty and media stocks edged higher.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.76% to 16.74.
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, 2332 shares rose and 1016 shares fell. A total of 193 shares were unchanged.
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.
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.
Buzzing Index:
The Nifty Metal index rose 2.99% to 5,807.20. The index has added 3.49% in two sessions.
Hindustan Copper (up 10.47%), National Aluminum Co. (up 9.21%), SAIL (up 4.66%), Adani Enterprises (up 4.53%), Hindalco Industries (up 4.53%), Vedanta (up 4.34%), Jindal Steel & Power (up 3.86%), NMDC (up 3.31%), APL Apollo Tubes (up 2.73%) and Tata Steel (up 1.89%) advanced.
Stocks in Spotlight:
Reliance Industries (RIL) advanced 1.31% to Rs 2555.80. 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 1.35% at Rs 682. 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 3.97% to Rs 145.40 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.
Grasim Industries fell 1.86% to Rs 1642.25. 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% to Rs 2855.85. 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 1.02% to Rs 2745. The company sold 33,529 motorcycles in September 2021, down from 60,331 motorcycles sold in September 2020.
Coal India advanced 0.64% to Rs 189.80. 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 1.71% to Rs 13.08. 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 2.53% to Rs 318.55. 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 0.34% to Rs 4250.10. 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 1.43% to Rs 5,648.85. 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.
Shares of Adani Green Energy added 2.43% to Rs 1,179 in trade 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 12.22% to Rs 47.75 after the company said it secured new work orders worth Rs 180.38 crore for various institutional projects.
Sona BLW Precision Forgings rose 2.27% to Rs 575.30. 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.
Global markets:
Most European shares advanced while Asian stocks ended mixed on Monday. Sentiment was dented by 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.
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