The key equity indices ended near the day's high with robust gains on Tuesday, tracking positive cues in other Asian stocks. The Nifty closed above the 16,600 mark. Metal shares rallied followed by pharma, banks and realty stocks.
The barometer index, the S&P BSE Sensex, advanced 403.19 points or 0.73% to 55,958.98. The Nifty 50 index added 128.15 points or 0.78% to 16,624.60. Both the indices attain record closing high levels.
Domestic sentiment was upbeat after Union Minister for Finance and Corporate Affairs Nirmala Sitharaman launched the National Monetisation Pipeline (NMP) on Monday. Through the NMP, the government will be listing out its infrastructure assets worth Rs 6 lakh crore to be sold over the next four years.
The broader indices outperformed the barometers. The BSE Mid-Cap index rose 1.52% and the BSE Small-Cap index gained 1.69%.
Buyers outpaced sellers. On the BSE, 2,149 shares rose and 1,026 shares fell. A total of 123 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 21,25,42,972 with 44,41,389 deaths. India reported 3,19,551 active cases of COVID-19 infection and 4,35,110 deaths while 3,17,20,112 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman launched the National Monetisation Pipeline (NMP) on Monday, 23 August 2021. NMP comprises a four-year pipeline of the Central Government's brownfield infrastructure assets. Besides providing visibility to investors, NMP will also serve as a medium-term roadmap for the asset monetisation initiative of the government.
The government has planned a Rs 6 lakh crore pipeline of assets that can be monetised, which will include a range of assets put on the block for private sector participation. The government has also developed an asset monetisation dashboard for monitoring real-time progress of NMP. Policy think tank NITI Aayog has finalised the NMP of potential brownfield infrastructure assets that has been created for a four-year period from financial year 2021-22 to 2024-25.
Giving a presentation, NITI Aayog CEO Amitabh Kant said, infra assets worth Rs. six lakh crore across rail, road, power sectors to be monetised over four years.
The NMP will serve as a roadmap for asset monetisation of various brownfield infrastructure assets across sectors including roads, railways, aviation, power, oil and gas, and warehousing.
Meanwhile, Commerce and Industry Minister Piyush Goyal said on Monday that foreign direct investments (FDI) into the country is on the rise, jumping to $2.1 billion in May this year. He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22.
"India has received the highest ever FDI inflow in 2020-21. It surged by 10% to $81.72 billion and FDI during May 2021 is $12.1 billion, i.e. 203% higher than May 2020," he said while addressing a meeting of different industry associations on promoting exports.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.251% as compared with 6.243% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.1925, compared with its close of 74.22 during the previous trading session.
MCX Gold futures for 5 October 2021 settlement rose 0.12% to Rs 47,639.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.06% to 93.01.
In the commodities market, Brent crude for October 2021 settlement rose $1.13 at $69.88 a barrel. The contract rose $3.57, or 5.48% to settle at $68.75 a barrel in the previous trading session.
Foreign Markets:
Most European shares declined while Asian shares rallied on Tuesday. US stocks finished higher Monday with the Nasdaq reaching an all-time closing high after the United States Food and Drug Administration (USFDA) granted full approval of the Pfizer and BioNTech vaccine.
Pfizer and BioNTech's Covid-19 vaccine became the first in the U.S. on Monday to be granted full approval by the Food and Drug Administration, clearing the path for more vaccine mandates.
The focus for global investors this week remains on the Fed's Jackson Hole symposium, which takes place virtually on Thursday, where policymakers could detail their plans for tapering the central bank's $120 billion a month bond buying program. Fed Chairman Jerome Powell will deliver a speech on Friday.
Meanwhile, investors continue to keep one eye on the situation in Afghanistan. Media houses reported that G-7 (Group of Seven) leaders are expected the seek a unified decision on Tuesday as to whether or not to recognize the Taliban's leadership, and whether to impose sanctions on the organization.
The U.S. Securities and Exchange Commission has reportedly began issuing new disclosure requirements to Chinese firms looking to list in New York, as part of a push to raise investor awareness of the risks involved.
New Listing:
Shares of Aptus Value Housing Finance India ended at Rs 346.50 per share, a discount of 1.84% compared with the issue price of Rs 353 per share.
The scrip was listed at a price of Rs 329.95 per share, at a discount of 6.53% to the initial public offer (IPO) price. The stock hit a high of Rs 354.60 and a low of Rs 329.95. On the BSE, 16.21 lakh shares of the company were traded in the counter.
The IPO of Aptus Value Housing Finance received bids for 94.82 crore shares as against 5.51 crore shares. The issue was subscribed 17.20 times. The issue opened for bidding on 10 August 2021 and closed on 12 August 2021. The price band of the IPO was fixed at Rs 346-353 per share.
Shares of Chemplast Sanmar settled at Rs 534.90, a discount of 1.13% compared with the issue price of Rs 541 per share.
The scrip was listed at Rs 525 per share, a discount of 2.95% to the initial public offer (IPO) price. The stock hit a high of Rs 550 and a low of Rs 510.30. On the BSE, over 20.42 lakh shares of the company were traded in the counter.
The IPO of Chemplast Sanmar received bids for 8.66 crore shares as against 3.99 crore shares on offer, according to stock exchange data. The issue was subscribed 2.17 times. The issue opened for bidding on Tuesday (10 August 2021) and closed on Thursday (12 August 2021). The price band of the IPO was fixed at Rs 530-541 per share.
Buzzing Indian Segment:
The Nifty Metal index rose 2.90% to 5,444.80. The index tumbled 10.09% in the past four sessions.
National Aluminum Company (up 6.96%), NMDC (up 5.72%), Welspun Corp (up 5.37%), Hindalco Industries (up 3.85%), Tata Steel (up 3.57%), SAIL (up 3.43%), Jindal Steel & Power (up 2.7%), Hindustan Zinc (up 2.01%), Coal India (up 1.75%) and JSW Steel (up 1.18%) advanced.
Vedanta advanced 4.75%. The company said it had made a natural gas discovery in a block in Gujarat that it had won in the open acreage licensing policy (OALP) round. Vedanta has notified the Management Committee, DGH and Ministry of Petroleum and Natural Gas on 23 August 2021 of a gas & condensate discovery (named 'Jaya') in its exploratory well Jaya-1 (earlier Jambusar-Updip-1) drilled in OALP Block CB-ONHP/2017/2 in Bharuch District of Gujarat.
Stocks in Spotlight:
Bajaj Finserv surged 7.91% to Rs 16,475.25. The scrip hit a record high of 16,590.15 in intraday today.
The Securities and Exchange Board of India (SEBI) vide its letter dated 23 August 2021 granted the company an in-principle approval for sponsoring a mutual fund. Accordingly, the company would be setting up an asset management company and the trustee company, directly or indirectly i.e., itself or through its subsidiary.
HDFC Bank rose 2.31% while Central Depository Services (India) (CDSL) gained 3.51%.
HDFC Bank sold 23,11,000 equity shares or 2.21% stake of CDSL from 22 June 2021 to 24 August 2021. Following the transaction, the shareholding of HDFC Bank in CDSL currently stands at 4.97%.
Maruti Suzuki India shed 0.27%. Competition Commission of India (CCI) has imposed a penalty of Rs 200 crore upon Maruti Suzuki India (MSIL) for restricting discounts by dealers. The CCI passed the order against the company for indulging in anti-competitive conduct of resale price maintenance in passenger vehicle segment by implementing discount control policy.
Adani Green Energy added 2.71%. The company said that its board will meet on 26 August 2021 to consider raising upto $75,00,00,000 via issue of debt securities on a private placement basis.
Eicher Motors rose 0.13%. The auto maker said that its board on Monday (23 August 2021) unanimously decided to reappoint Siddhartha Lal as managing director, with effect from 1 May 2021.
The company held its 39th Annual General Meeting (AGM) on 17 August 2021. At the AGM, the company's shareholders rejected a special resolution to reappoint managing director Siddhartha Lal for five years with effect from 1 May 2021.
As per media reports, Lal's reappointment as MD was voted down by the shareholders over a 10% hike in his salary proposed amid the COVID-19 pandemic when the revenues and profits have been slow. Lal's salary of Rs 21.13 crore in FY21 was 340 times the average employee salary and grew at a compound annual growth rate of 28% over the past three years, while the company's operating profit and net profit declined by 14% and 8%, respectively, over the same period, reports indicated.
Indian Hotels Co. rose 1.23%. The board of Indian Hotels Company has approved rights issue of equity shares for an amount not exceeding Rs 3,000 crore. As per the company's disclosure, the objective of the issue is to meet its financing needs for capital expenditure, growth plans and debt repayment and will be finalised in consultation with the merchant bankers.
N R Agarwal Industries gained 0.97%. The company temporarily shut down its plant due to lack of market orders.
Nucleus Software Exports advanced 3.59%. The IT company said that it will empower South Indian Bank by providing digital solution offering to revamp the bank's current retail lending landscape.
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