After hitting record high levels in early trade, the domestic equity benchmarks came off day's high and ended with decent gains on Monday. The Nifty ended below 17,400 level. IT stocks rallied while realty stocks extended recent gains. Upbeat global stocks boosted investors' sentiment.
As per provisional closing data, 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.
The Sensex hit record high of 58,515.85 while the Nifty scaled record high of 17,429.55 in early trade.
Buying was broad based. The S&P BSE Mid-Cap index rose 0.18%. The S&P BSE Small-Cap index added 0.59%.
Buyers paced sellers. On the BSE, 1702 shares rose and 1622 shares fell. A total of 171 shares were unchanged.
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.
Buzzing Index:
The Nifty IT index rose 1.49% to 35,409.75. The index has added 3.81% in three sessions.
Wipro (up 4.68%), Mphasis (up 2.43%), HCL Tech (up 1.89%), Infosys (up 1.69%), Tech Mahindra (up 1.29%), Oracle Financial Services Software (up 1.50%), MindTree (up 1.05%), Coforge (up 0.77%) and TCS (up 0.36%) advanced.
Stocks in Spotlight:
Tarc rose 3.90% to Rs 41.25. 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 0.97% to Rs 153.40. 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 0.67% to Rs 779.70. 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 lost 0.34% to Rs 6840.05. The company announced a price change for select models owing to increase in various input costs with effect from 06 September 2021. The weighted average price increase in Ex Showroom Prices (Delhi) across select models is 1.9%.
Hero MotoCorp advanced 0.55% to Rs 2816.55. Hero MotoCorp 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 0.65% to Rs 101.10. 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 1.18% to Rs 72.80. 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 1.82% to Rs 168.25. 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.
Global Markets:
The US Dow Jones 30 Futures were currently up 81 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.
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