The domestic equity indices settled with significant gains on Thursday. Positive global cues and robust quarterly business updates by domestic firms supported buying. The Nifty closed a tad below the 17,800 mark after hitting the day's high of 17,857.55 in afternoon trade. Bulls took the charge ahead of RBI's monetary policy outcome and Q2 earnings season that is set to kick off on Friday, 8 October 2021.
The barometer index, the S&P BSE Sensex, surged 488.10 points or 0.82% to 59,677,83. The Nifty 50 index added 144.35 points or 0.82% to 17,790.35.
The NSE's VIX index, a gauge of market's expectation of volatility over the near term, dropped 6.79% to 16.16. The weekly index options on the NSE expired today.
Buying momentum was broad based with realty, autos and consumer durables stocks in the limelight. Oil & gas stocks corrected after a recent rally.
In the broader market, the S&P BSE Mid-Cap index rose 1.68% while the S&P BSE Small-Cap index gained 1.38%. Both the indices outpaced the benchmarks.
The market breadth favoured the bulls. On the BSE, 2,216 shares rose and 1,084 shares fell. A total of 143 shares were unchanged.
The Reserve Bank of India's (RBI) monetary policy committee (MPC) began its two-day policy meet on 6th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021.
IT major TCS (up 2.17%) will announce its Q2 results on Friday, 8 October 2021.
Infosys (up 1.04%) will announce Q2 results on Wednesday, 13 October 2021.
Among telecom shares, Bharti Airtel rose 0.17% while Vodafone Idea fell 0.61%.
The government on Tuesday notified its decision to permit 100% foreign direct investment (FDI) under automatic route in the telecom services sector.
Till now, only 49% of FDI was allowed through the automatic route and anything beyond it had to mandatorily go through the government route.
In a press note, the Department for Promotion of Industry and Internal Trade (DPIIT) said foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020.
Index heavyweight Reliance Industries (RIL) rose 0.47% to Rs 2,572.15. RIL controls Reliance Jio Infocomm.
Meanwhile, RIL informed on Thursday that Reliance Retail Ventures (RRVL) through its wholly owned subsidiary, 7-India Convenience Retail, has entered into a master franchise agreement with 7-Eleven, Inc. for the launch of 7-Eleven convenience stores in India. The first 7-Eleven store is set to open on Saturday (9 October) in Andheri East, Mumbai.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 74.79 from its previous closing of 74.98.
MCX Gold futures for 3 December 2021 settlement fell 0.6% to Rs 46,879.
The yield on India's 10-year benchmark federal paper (06.10 GS 2031) was currently at 6.2674% as compared with its previous closing of 6.276%.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.08% to 94.19.
The yield on the benchmark 10-year U.S. Treasury note stood at 1.521%, lifted by the prospects of tighter monetary policy.
In the commodities market, Brent crude for December 2021 settlement fell 90 cents or 1.11% to $80.18 a barrel.
Global markets:
US Dow Jones futures were up 207 points, indicating a positive opening in the US stocks.
Shares in Europe and Asia advanced on Thursday. Sentiment turned positive after US stocks staged a comeback from their lows as investors bought the dip in technology names.
Wall Street ended higher on Wednesday as investors grew more optimistic that congressional Democrats and Republicans could reach a deal to avert a government debt default.
US private payrolls increased more than expected in September as COVID-19 infections started subsiding, boosting hiring at restaurants and other high-contact businesses. Private payrolls increased by 568,000 jobs last month, the ADP National Employment Report showed. Data for August was revised lower to show 340,000 jobs added instead of the initially reported 374,000.
Investors are awaiting payrolls data due Friday, with investors anticipating that a reasonable figure will mean the US Federal Reserve will begin tapering its massive stimulus programme at its November meeting.
Buzzing Segment:
Shares of ONGC, GAIL (India) and Oil India corrected after crude oil prices declined in the international markets. The correction was triggered by higher than expected U.S. crude stockpiles and comments from Russia, offering to ease a natural gas crisis.
ONGC (down 4.58%), GAIL (India) (down 4%) and Oil India (down 2.38%) tumbled.
U.S. crude inventories expanded by 2.35 million barrels last week, according to government data. Crude supplies at the key storage hub in Cushing, Oklahoma, expanded for a second week.
Russian President Vladimir Putin reportedly said record volumes of natural gas could potentially be exported to Europe this year as the continent faces an energy crunch. Gas prices fell after his remarks.
The Nifty Oil & Gas index shed 0.27% to 7,995.80.
Stocks in Spotlight:
Titan Company jumped 10.69%. The company said its jewellery segment revenue jumped 78% year on year (YoY) in Q2 FY22. CaratLane's business revenue jumped 95% year on year in Q2 FY22. The watch segment revenue grew by 73% YoY in Q2 FY22. Eye wear segment revenue surged by 74% YoY in Q2 FY22.
Mahindra & Mahindra (M&M) spurted 5.32%. M&M started bookings of its XUV700 model today. The company said it clocked 25,000 bookings in 57 minutes of its booking commencement. Bookings will now reopen starting 10 am on 8th October.Reliance Industries added 0.88% to Rs 2582.80. RIL informed that Reliance Retail Ventures (RRVL) through its wholly owned subsidiary, 7-India Convenience Retail Limited, has entered into a master franchise agreement with 7-Eleven, Inc. for the launch of 7-Eleven convenience stores in India.
Sobha surged 16.68%. The company's new sales rose by 50.62% to 13.48 lakh square feet in Q2FY22 versus 8.91 lakh square feet in Q2FY21. Total sales value jumped 49.32% to Rs 1,030.2 crore in Q2 FY22 from Rs 689.9 crore in Q2 FY21. The company achieved best-ever quarterly sales volume of 13.48 lakh square feet of super built-up area. It also achieved best ever Sobha share of sale value of Rs 854.2 crore. Average cost of borrowing has further come down during the quarter.
Macrotech Developers soared 6.50%. The company's pre-sales jumped 109% quarter on quarter and 88% year on year to Rs 2,003 crore in Q2 FY22. Collections grew by 12% quarter on quarter and 73% year on year to Rs 1,912 crore in Q2 FY22. The company's net debt for India business stood at Rs 12,508 crore, which is around the same level as Q1. The company estimates that the net debt will be at Rs 10,000 crore at the end of fiscal year in the India business.
Kalyan Jewellers India jumped 13.07%. The company said it saw continued robust momentum in both footfalls and revenue across all its markets in India and Middle East in Q2 FY22. The jewellery retailer said it witnessed revenue growth of about 60% for its India operations during the recently concluded quarter, as compared to the same period in the previous year. Kalyan's online jewellery platform, Candere, recorded a revenue growth of about 45% during the quarter, compared to the same period during the last year.
Piramal Enterprises (PEL) rose 1.57% after the company said its board approved the demerger of the pharmaceuticals business and simplification of the corporate structure.
The pharmaceuticals business will get vertically demerged from PEL and consolidated under Piramal Pharma. Shareholders of PEL will get 4 shares of Piramal Pharma for every 1 share in PEL, in addition to their existing holding in PEL. Post the demerger, Piramal Pharma will become one of the large pharma companies listed on NSE and BSE.
Further, PHL Fininvest, the non-banking financial company (NBFC), will be amalgamated with PEL to create a large listed NBFC. The merged housing finance company, post the DHFL acquisition, will remain a wholly-owned subsidiary of PEL.
Ramkrishna Forgings jumped 3.86%. The company signed a Memorandum of Understanding (MoU) with a US based technology partner for the development of electric vehicle powertrain components for the Indian EV market.
Balaji Amines fell 1.62%. The company said that a small incident took place at the company's unit III demethylformamide (DMF) plant which caused leakages/breakdown. While rectifying this the company added some debottlenecking activities to increase capacity. During this period, the DMF plant will not be in operational.
Srei Infrastructure Finance hit a lower circuit of 5% at Rs 7.39. The media reported that the Bombay High Court on Thursday dismissed the petition by promoters of Srei Group challenging the move by the Reserve Bank of India to supersede the boards of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL).
The petition was reportedly filed by promoters of SIFL and SEFL to stay the insolvency proceedings initiated by the RBI. It was taken up for hearing by the Bombay High Court on Thursday and it said it is not inclined to entertain the matter after hearing both the sides, reports added.
The RBI had on 4 October 2021 superseded the boards of SIFL and SEFL, paving the way for their resolution. It has also appointed Rajneesh Sharma, ex-chief general manager, Bank of Baroda as the administrator of the companies. The RBI can now move the National Company Law Tribunal to initiate proceedings against the two companies.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 236,467,427 with 4,827,642 deaths. India reported 244,198 active cases of COVID-19 infection and 449,856 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 92,58,17,589 COVID-19 vaccine doses have been administered in the country so far, with over 42.91 lakh doses being given yesterday, according to the Co-WIN dashboard.
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