At 11:23 IST, the barometer index, the S&P BSE Sensex, added 268.31 points or 0.69% at 39,122.67. The Nifty 50 index rallied 71.4 points or 0.62% at 11,535.05.
The broader market surged after the Securities and Exchange Board of India (SEBI) on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021. The S&P BSE Mid-Cap index was up 1.92% while the S&P BSE Small-Cap index jumped 3.96%.
Buyers outpaced sellers. On the BSE, 1792 shares rose and 590 shares fell. A total of 158 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,175.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 724.31 crore in the Indian equity market on 11 September, provisional data showed.
SEBI Ruling:
To achieve the desired objective of true to label and appropriate benchmarking, SEBI issued a circular dated 11 September 2020 on multi cap schemes of mutual funds, requiring them to invest a minimum of 25% each in large, mid and small cap stocks, with the balance 25% giving flexibility to the fund manager.
SEBI on 13 September 2020 clarified that mutual funds have many options to meet with the requirements, based on the preference of their unit holders. Apart from rebalancing their portfolio in the multi cap schemes, they could facilitate switch to other schemes by unit holders, merge their multi cap scheme with their large cap scheme or convert their multi cap scheme to another scheme category, for instance Large cum mid cap scheme.
SEBI is conscious of market stability and therefore has given time to the mutual funds till 31 January 2021 to achieve compliance, through its preferred route of which rebalancing of the portfolio is only one such route.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 28,902,170 with 9,22,735 deaths. India reported 9,86,598 active cases of COVID-19 infection and 79,722 deaths while 37,80,107 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. India's recovery rate has improved to 77.88%. The COVID-19 case fatality rate has further dropped to 1.65%.
Buzzing Index:
The Nifty Realty index gained surged 3.37% to 222.20. The index has added 5.28% in three days.
Prestige Estate (up 6.84%), Phoenix Mills (up 4.76%), Brigade Enterprises (up 4.41%), Sunteck Realty (up 4.4%), Oberoi Realty (up 4.07%) and Indiabulls Real Estate (up 2.59%) were top gainers in realty space.
Stocks in Spotlight:
Goa Carbon rose 2.51% after the company said its unit in Paradeep, Odisha has resumed operation from 13 September 2020. The Kiln at the Paradeep unit was lit up from 11 September 2020. After preliminary heat up and commencement of feeding of raw material, normal production resumed from 13 September 2020.
Dhanuka Agritech surged 2.88% after the company said its board will meet on Wednesday, 16 September 2020, to consider final terms and conditions of the proposed share buyback. On 22 July 2020, the board approved a proposal to buyback shares worth up to Rs 100 crore at a price not exceeding Rs 1000 per share. At the maximum buyback price and the maximum buyback size, the indicative maximum number of equity shares bought back would be 10 lakh equity shares.
Global Markets:
Asian markets advanced on Monday, with investors watching shares of Japanese conglomerate Softbank Group following an announcement of its sale of U.K. chip designer Arm to U.S. chip firm Nvidia.
Chipmaker Nvidia has agreed to buy Arm Holdings, a designer of chips for mobile phones, from Softbank in a deal worth $40 billion, the companies announced Sunday. The deal will be for a mix of $21.5 billion in Nvidia stock and $12 billion in cash, including $2 billion payable at signing.
Meanwhile, developments in Japanese politics were also watched as the search for the successor for Prime Minister Shinzo Abe continues. The ruling Liberal Democratic Party is set to hold an election to choose its new leader on Monday.
In US, the Nasdaq Composite Index fell 66.05 points, or 0.6%, finishing at 10,853.55 in another volatile session on Friday on continuing sell-off in tech stocks. The Dow Jones Industrial Average rose 131.06 points, or 0.5%, ending at 27,665.64; while the S&P 500 rose 1.78 points, or 0.1%, to close at 3,340.97. Apple dropped 1.3% and Amazon fell by 1.9%. Facebook, Alphabet and Microsoft were all down. ByteDance rejected Microsoft's bid to buy TikTok's U.S. operations.
The Labor Department said Friday its U.S. consumer price index rose by 0.4% in August. The Treasury Department said the federal budget deficit officially surpassed $3 trillion in August, and is on pace to hit $3.3 trillion when the fiscal year ends this month.
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