Shares were trading firm in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 540.20 points or 0.92% to 59,305.78. The Nifty 50 index added 157.15 points or 0.9% to 17,689.20.
Value buying emerged after the Sensex fell 2.18% and the Nifty fell 1.81% in the past four trading sessions. Traders lapped up shares ahead of RBI's monetary policy meet and earnings season that is set to kick off this week. Strong gains were, however, capped due to negative global cues.
In the broader market, the S&P BSE Mid-Cap index rose 1.32% while the S&P BSE Small-Cap index gained 1.57%. Both these indices outperformed the Sensex.
Buyers outpaced sellers. On the BSE, 2334 shares rose and 922 shares fell. A total of 202 shares were unchanged.
The Reserve Bank of India's (RBI) monetary policy committee (MPC) is scheduled to meet during 6th to 8th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021.
IT major TCS (up 1.16%) will announce its Q2 results on Friday, 8 October 2021.
Divis Laboratories (up 8.28%) and Bajaj Finserv (up 4.13%) were major index gainers.
Reliance Industries (RIL) was up 1.15%. RIL has incorporated a wholly owned subsidiary, Reliance International (RINL), in Abu Dhabi Global Market, United Arab Emirates. The unit will undertake activities relating to, amongst others, trading of crude oil, petroleum products, petrochemicals and agricultural commodities. RINL is yet to commence its business operations.
Bharti Airtel rose 1.25% at Rs 681.30. The telecom major's rights issue will open on Tuesday, 5 October 2021 and close on Thursday, 21 October 2021.
A total of upto 39,22,87,662 shares will be offered as part of the rights issue. The rights shares will be issued at Rs 535 per fully paid-up share. Eligible investors will receive one share for every 14 shares held as on the record date.
Bharti Airtel will raise upto Rs 20,987.39 crore assuming full subscription and receipt of all call monies with respect to rights equity shares.
Tata Motors rose 2.88%. The auto major on 1 October announced its sales in the domestic & international market, in Q2 FY22, rose 55.21% to 1,71,270 vehicles, compared to 1,10,345 units during Q2 FY21.
NTPC rose 3.04% on reports the state-run company expects to raise Rs 15000 crore through initial public offerings in three units. The media reported that the state-run generator plans to sell shares in NTPC Renewable Energy (NREL) within a year. A listing of hydropower unit North Eastern Electric Power Corporation (NEEPCO), which it bought last year, and power trading arm, NTPC Vidyut Vyapar Nigam (NVVN), are planned for early 2024, reports added.
Further, NTPC is also looking to sell its stake in NTPC-SAIL Power Co., a joint venture with Steel Authority of India, for supplying electricity to the steel maker's mills and townships, reports suggested.
Grasim Industries fell 2.59%. The Deputy Commissioner of Income Tax has imposed a capital gain tax on the company of Rs 8,334 crore related to a sale of shares in group firm Aditya Birla Capital during tax assessment year 2018-19. The company said it will take appropriate action against the said order which it believes is against the spirit of tax laws.
Economy:
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has called upon the NRIs and Indian diaspora to invest in India unhesitatingly. Addressing the Indian People's Forum (IPF) Business Conclave in Dubai on 3 October 2021, Goyal said this is the right time for India's vast expatriate community to invest in their motherland. There is a great opportunity in extraordinary growth in India. Goyal underlined that the 3.4 million strong Indian diaspora in the UAE acts as a bridge between the two countries.
Global markets:
The US Dow Jones futures were down 154 points, indicating a weak opening for US stocks today.
European shares fell across the board while Asian stocks were mixed on Monday. Sentiment was dented by concerns surrounding inflation, Federal Reserve tapering and rising interest rates.
Trading in the Hong Kong-listed shares of China Evergrande was halted on Monday as investors continue to monitor the situation surrounding the indebted developer as it faces a maturing bond with little wiggle room for payment. The property giant has missed two bond interest payments in the past weeks.
Investors will look out for the comments from OPEC+ which meets virtually amid a spiral higher in crude prices.
US stocks surged on Friday, boosted by positive economic data, progress in the battle against COVID, and Washington developments on the potential passage of an infrastructure bill.
Merck and Ridgeback Biotherapeutics announced Friday they've developed a drug which reduces the risk of hospitalization or death by around 50% in Covid patients. If authorized by regulatory bodies, the drug could be the first oral antiviral medicine for Covid. The companies plan to seek emergency authorization for the antiviral Covid treatment after the medicine showed compelling results in clinical trials.
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