After hitting record high levels in intraday trade, the benchmark indices sharply pared gains and ended near the flat line on Wednesday. FMCG shares advanced along with IT and metal stocks.
The barometer index, the S&P BSE Sensex, slipped 14.77 points or 0.03% to 55,944.21. The Nifty 50 index added 10.05 points or 0.06% to 16,634.65, its record closing high.
The Sensex hit a record high of 56,198.13 while Nifty attained an all-time high of 16,712.45 in mid-morning trade today.
TCS (up 1.31%), Infosys (up 0.96%) and Reliance Industries (up 0.89%) supported the indices.
Bharti Airtel (down 1.19%), Axis Bank (down 0.99%) and ICICI Bank (down 0.5%) were major drags.
Bajaj Finserv tumbled 3.51% to Rs 15,896.70. The stock surged 10.04% in the past two sessions. The recent rally was triggered by the company securing Sebi nod for setting up an Asset Management Company (AMC).
The broader indices outperformed the barometers. The BSE Mid-Cap index rose 0.58% and the BSE Small-Cap index gained 0.68%.
Buyers outpaced sellers. On the BSE, 1,991 shares rose and 1,214 shares fell. A total of 105 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 21,32,10,592 with 44,52,826 deaths. India reported 3,22,327 active cases of COVID-19 infection and 4,35,758 deaths while 3,17,54,281 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India's COVID-19 vaccination coverage has crossed 59 crore 47 lakh mark. The cumulative figure stands at 59 crore 47 lakh 65 thousand and 751.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.244% as compared with 6.250% 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 74.2450, compared with its close of 74.1925 during the previous trading session.
MCX Gold futures for 5 October 2021 settlement fell 0.51% to Rs 47,370.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.07% to 92.95.
In the commodities market, Brent crude for October 2021 settlement fell 9 cents at $70.96 a barrel. The contract rose $2.30, or 3.35% to settle at $71.05 a barrel in the previous trading session.
Foreign Markets:
Most shares in Europe and Asia advanced on Wednesday, tracking overnight gains in the US stocks, with the S&P 500 and Nasdaq reaching record highs.
Global sentiment improved as US House passed a measure approving $3.5 trillion budget blueprint and USFDA granted full approval to COVID-19 vaccine developed by Pfizer. Investors continued to remain concerned that spread of highly infectious delta variant may derail the global economic recovery. Additionally, markets will remain vigilant ahead of the Jackson Hole Symposium.
US central bankers will meet virtually for an annual gathering traditionally held in Jackson Hole in Wyoming. Jerome H. Powell, the Fed's chair, will speak on Friday and is expected to reveal details about how and when the bank plans to begin winding down its bond-buying program. The Fed has started discussions to pull back its $120 billion a month bond-buying program by the end of this year.
Buzzing Indian Segment:
The Nifty FMCG index rose 0.56% to 38,448.10. The index declined 0.94% in the past two sessions.
Jubilant FoodWorks (up 3.38%), Godrej Consumer Products (up 3.01%), Varun Beverages (up 2.75%), Dabur India (up 1.21%), Britannia Industries (up 1.02%), Colgate Palmolive (India) (up 0.83%), Procter & Gamble Hygiene & Health Care (up 0.62%), Hindustan Unilever (up 0.42%), NestlIndia (up 0.35%), Tata Consumer Products (up 0.30%) and ITC (up 0.27%) advanced.
United Spirits (down 1.28%), United Breweries (down 1.38%) and Marico (down 1.48%) declined.
Stocks in Spotlight:
Wabco India shed 0.48% to Rs 7136.45 after the offer for sale (OFS) opened for non-retail investors today, 25 August 2021. Through the OFS, the company's promoter ZF International UK proposes to sell up to 3,80,432 equity shares (representing 2.01% stake) of the company.
The floor price for the OFS is Rs 6,900 per equity share, a 3.78% discount to Wabco India's closing price of Rs 7170.85 on Tuesday, 24 August 2021. ZF International UK held 2.01% stake in the company as on 30 June 2021. As on 15:30 IST, the OFS received subscription for 7,96,787 shares. It was subscribed 232.71% on the non-retail offer size of 3,42,388 shares.
Kaveri Seed Company fell 0.10% to Rs 578.80. The company's board approved a proposal to buyback equity shares worth upto Rs 120 crore. The company proposes to buyback shares at maximum price of Rs 850 each.
Adani Ports and Special Economic Zone (APSEZ) advanced 3.71%. The company announced that the company has received approval from the Andhra Pradesh Maritime Board for acquiring 10.4% stake in Gangavaram Port. APSEZ announced that its proposal to acquire 10.4% stake for Rs 644.78 crore of Gangavaram Port from the Andhra Pradesh government has received approval from the Andhra Pradesh Maritime Board. The transaction is expected to complete within a month.
Wipro declined 0.23%. The IT major announced that it will open a new delivery center in Sherwood, Arkansas in US and will invest approximately $3 million to transform a 70,000 square-foot facility at Landers Road into a customer service center.
Gillette India fell 1.46%. The company's standalone net profit skid 38.8% to Rs 27.53 crore on 24.2% increase in net sales to Rs 435.98 crore in Q4 June 2021 over Q4 June 2020. The company said net sales improved as a consequence of its superior strategy and market recovery. However, the profit after tax (PAT) took a hit as a result of increased investment in brand building. The grooming and the oral care businesses recorded double-digit growth and grew ahead of their categories.
Sterling Tools jumped 8.19%. ICRA has reaffirmed the long-term as well as short term credit rating of the company while changing its outlook to stable from negative. ICRA said the revision in outlook of Sterling Tools factors in the stabilisation in its operating performance over the past few quarters, post the disruptions brought abought by the pandemic and nation-wide lockdown in Q1 FY2021. As the restrictions were lifted gradually over the course of the year, the company reported significant revival in revenues and profitability, even outpacing the industry growth, ICRA added.
ICICI Bank shed 0.50%. The Reserve Bank of India (RBI) approved reappointment of Sandeep Bakhshi as managing director and CEO of the bank from 15 October 2021 to 3 October 2023.
CreditAccess Grameen fell 2.72%. The company said that its board has approved the terms and conditions for issuance of 1000 non-convertible debentures of face value Rs 10 lakh each, aggregating up to Rs 100 crore.
Tatva Chintan Pharma Chem added 2.60%. The company announced the resignation of Mahesh Tanna from the post of chief financial officer and key managerial personnel of the company on 24 August 2021. The company said that it is in the process of appointing successor as chief financial officer and key managerial personnel.
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