The domestic equity barometers were currently trading at the high point of the day in early afternoon trade. The Nifty hit an all-time high of 17,482.95 while the Sensex hit a record high of 58,606.61 in the intraday. IT shares extended their wining streak for the fourth day in a row.
At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 347.38 points or 0.60% to 58,594.47. The Nifty 50 index added 97 points or 0.56% to 17,477.00.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.62% while the S&P BSE Small-Cap index gained 0.85%.
The market breadth remained strong. On the BSE, 2031 shares rose and 1082 shares fell. A total of 166 shares were unchanged.
Economy:
India's merchandise exports jumped 45.76% to $33.28 billion in August 2021, led by petroleum products, gems and jewellery, engineering goods and cotton yarn. Merchandise imports rose 51.72% to $47.09 billion, as against $31.03 billion in the corresponding month of 2020, according to the commerce ministry's data released on Tuesday.
The trade deficit (merchandise) swelled to $13.81 billion, compared to $8.2 billion in August 2020. The previous high was $15.1 billion in April 2021.
Meanwhile, Ministry of Finance stated in a latest update that eleven states namely, Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Manipur, Meghalaya, Nagaland, Rajasthan and Uttarakhand have achieved the target set by the Ministry of Finance for the capital expenditure in the first quarter of 2021-22.
As an incentive, these States have been granted permission by the Department of Expenditure to borrow an additional amount of Rs 15,721 crore. The additional open market borrowing permission granted is equivalent to 0.25% of their Gross State Domestic Product (GSDP).
Additional financial resources thus made available will help the States in pushing their capital expenditure further. The capital expenditure has a high multiplier effect, enhances the future productive capacity of the economy, and results in a higher rate of economic growth.
The next review of Capital expenditure of States will be undertaken by the Department of Expenditure in December, 2021.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, was up 0.77% to 13.68. The Nifty 30 September 2021 futures were trading at 17,460.85, at a discount of 16.15 points as compared with the spot at 17,477.
The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 16.7 lakh contracts at the 17,500 strike price. Maximum Put OI of 40.8 lakh contracts was seen at 17,000 strike price.
Buzzing Index:
The Nifty IT index rose 1.48% to 35,955.35, advancing for fourth day in a row. The index has added 3.68% in four sessions.
MindTree (up 4.82%), Mphasis (up 3.71%), HCL Tech (up 1.96%), Larsen & Toubro Infotech (up 1.61%), TCS (up 1.56%), Coforge (up 1.38%) and Infosys (up 1.15%) advanced.
Sansera Engineering IPO:
Sansera Engineering IPO opened for subscription from Tuesday (14 September) and it will close on Thursday (16 September). The company is offering 1,72,44,328 shares (including Anchor portion of 51,35,162 equity shares) in the price band of Rs 734 to Rs 744 per share.
As on 12:33 IST, the IPO received bids for 88.35 lakh shares as against 1,21,09,166 shares on offer. The issue was subscribed 0.73 so far.
The IPO is a complete offer for sale by existing shareholders and the company will not directly receive any proceeds from the offer. Sansera Engineering is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors.
Stocks in Spotlight:
Ramkrishna Forgings advanced 2.61% to Rs 1045.10. The company bagged an export order worth Rs 25 crore (i.e. $3.5 million per annum) from a North American customer in Oil & Gas segment.
KNR Constructions was up 0.38% to Rs 313.15. The company received a letter of acceptance (LoA) for the development of six lane Chittor-Thatchur Highway on Hybrid Annuity Mode in the state of Andhra Pradesh and Tamil Nadu. The bid project cost stood at Rs 1,041.50 crore and is expected to be completed within a period of 24 months (i.e. 2 years) (with an operation period of 15 years from commercial operation date (COD)).
Royal Orchid Hotels rose 3.64% to Rs 85.35. The hospitality chain announced the opening of five new properties at various destination across India. The company has opened two hotels in Amritsar, one in Sampbalpur and one in Somnath. The group also opened one leisure property in a tourist-intensive and high-demand area of Kabini in Karnataka.
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