ECONOMY

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

Closing Bell

India’s stock benchmarks snapped a two-week winning streak as metal, realty and banking stocks dragged. Hawkish comments from the minutes of the U.S. Federal reserve hinting at the possibility of tapering by this year sapped sentiment.

The S&P BSE Sensex fell 0.54% to 55,329.32. The NSE Nifty 50 declined 0.71% to 16,450.50. Tata Steel Ltd. contributed the most to the index decline and had the largest move, decreasing 8.3 percent.

The broader indices underperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap shedding 2%. Barring S&P BSE FMCG, all the other 18 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal slipping 7%.

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The market breadth was skewed in favour of bears. About 752 stocks advanced, 2,447 declined and 132 remained unchanged.

“Indication of winding down monthly asset purchase programme in FOMC meeting minutes made investors jittery, which weighed domestic equities. However, considering improved visibility of sustained earnings growth in subsequent quarters, a meaningful correction in quality midcap names should be bought. Rise in delta variant of Coronavirus in various parts of the world and increasing concern about sustainability of ongoing economic recovery globally led heavy profit booking in metal stocks. We believe that underlying strength of domestic market remains intact. In our view, progress of monsoon, festive demand and COVID-19 positivity rates will be in focus in coming days. We note higher government’s capex and revival in industrials’ capex should aid economic recovery. Investors must focus on quality stocks with robust earnings visibility and margins of safety”, wrote Binod Modi, Head Strategy at Reliance Securities in a note.

Ashoka Buildcon Wins Rs 186 Crore Order From Rewa Ultra Mega Solar

Ashoka Buildcon Ltd. received Notification of Award from Rewa Ultra Mega Solar Ltd. The order is related to development of transmission system for 1500 MW solar parks in Madhya Pradesh.

In an exchange release, Ashoka Buildcon said that the accepted contract price of the project was Rs 186.11 crore.

Of the 20 analysts tracking the company, 19 maintained ‘buy’ and 1 maintained ‘sell’ recommendation with 9 of the analysts revising the price targets higher over the past month. The overall consensus price of analysts tracked by Bloomberg implied an upside of 53%.

BofA Sees Indian Stocks Correcting

Fed taper talk and rise in U.S. yields and the dollar are among factors that could act as negative triggers, according to analyst notes of BofA Securities India Ltd.

  • Locally, peak valuations, consensus EPS estimate cuts and recent muted IPO gains negatively impacting retail investor sentiment could be triggers.

  • Nifty target of 15,000 implies 9% potential downside from current levels

  • Analysis of past market rallies suggests the current rally could have limited further runway

  • Prefers large-cap stocks near term on cautious view

  • Turns overweight on defensives while cutting materials to underweight

  • Maintains overweight on industrials and financials

Also Read: Easy Money Fuels Inflation and World-Beating Stocks in India

Nestle India Shares Hit 52-Week High

Shares of Nestle India Ltd. rose 3.11% to hit 52-week high of Rs 19,499.40 apiece. Trading volume was 99,523 shares, double the 20-day average of 43,301 shares for this time of the day.

Analysts have 18 ‘buy’, 17 ‘hold’ and 6 ‘sell’ recommendations on the stock with 16 analysts revising price targets higher over the past month.

The relative strength index on the stock was above 70, suggesting that it may be overbought. This is the fifth consecutive session in which the stock has gained.

 Britannia Shares Climb To 10-Month High

Shares of Britannia Industries Ltd. added 2.91%, to Rs 3,829 apiece, higher than any close since October 5, 2020.

Trading volume was 5,77,111 shares, 70% above the 20-day average of 3,38,653 shares for this time of the day.

The relative strength index on the stock was at 76, indicating it may be overbought.

Analysts have 28 ‘buy’, 10 ‘hold’ and 5 ‘sell’ recommendations on the stock with 18 analysts revising their price targets higher over the past month.

The overall consensus price target of analysts tracked by Bloomberg implied an upside of 4.8% .

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

S&P Puts Tata Group Companies On Creditwatch Positive

S&P places the long-term issuer and issue credit ratings on Tata Steel, Tata Motors, ABJA Investment, TML Holdings, and Jaguar Land Rover Automotive on CreditWatch with positive implications, according to a statement.

S&P: Could possibly reassess the relationship between these Tata Group entities and the currently unrated holding company Tata Sons, which credit quality is regarded as “strongly investment grade”.

S&P : We believe Tata Sons and its subsidiaries and associates have become more cohesive in recent years.

S&P: Will seek to resolve the CreditWatch in the next four to six weeks.

Also Read: Tata Motors’ Biggest Problem Is Not Chip Shortage: BQ Exclusive

Coffee Day Down After KKR Unit Sold 2 Million Shares

Shares of Coffee Day Enterprises shed 5% to Rs 27.65 apiece after a unit of KKR sold nearly 2 million shares of struggling coffee chain operator in a bulk deal on Wednesday.

  • The move follows Coffee Day’s longstanding attempts to sell assets to repay lenders, after the death of its founder in 2019.

  • The company is due to pay Rs 2,300 crore debt within the next 12 months.

  • The relative strength index on the stock is at 26, suggesting that the stock may be oversold.

IDFC First Bank Down 6%

Shares of IDFC First Bank Ltd. shed 5.82%, the most in 18 weeks, to Rs 42.05 apiece, lower than any close since January 6. The bank had 2.08 million shares change hands in two bunch trades.

  • Trading volume was 31.1 million shares, 6% above the 20-day average of 29.3 million shares for this time of the day.

  • The relative strength index on the stock was below 30, indicating that it may be oversold.

  • Of the 11 analysts tracking the company, 3 maintained ‘buy’, 2 maintained ‘hold’ and 6 maintained ‘sell’ recommendations.

  • The overall consensus price of analysts tracked by Bloomberg implied an upside of 23.5%.

  • IDFC First Bank was one of the worst performers in S&P BSE Finance index.

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

Mindtree Climbs 6%, Hits Record High

Shares of Mindtree Ltd. rose 6.21% to a record Rs 3,394.95 apiece

  • The relative strength index on the stock is 86, suggesting that it may be overbought. Mindtree shares added 103% in 2021 so far, highest among peers compared to 37.86% gains for NSE Nifty IT Index.

  • Trading volume was 4.5 times the 30-day average for this time of the day.

  • Of the 40 analysts tracking the company, 17 maintained ‘buy’, 12 maintained ‘hold’ and 11 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 23.6%.

Also Read: Indian IT Amid A Strong Hiring Boom, Says Jefferies

Mid-Day Market Update: Sensex, Nifty Decline; Mindtree Hits Record High

India’s stock benchmarks declined, weighed by banking and metal stocks amid weak global cues as surge in cases due to delta virus strain and China’s regulatory curbs sapped sentiment. Hawkish comments from U.S. Fed minutes hinted at the possibility of tapering by this year, which also piled the pressure on the markets.

The S&P BSE Sensex fell 0.4% to 55,425.70. The NSE Nifty 50 declined 0.58% to 16,472.10. Shree Cement Ltd. contributed the most to the index decline, decreasing over 1%. Tata Steel Ltd. had the largest drop, falling 6.3%.

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

The broader indices underperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap shedding over 1%. All the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal slipping 5%.

The market breadth was skewed in favour of bears. About 766 stocks advanced, 2,285 declined and 135 remained unchanged.

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

Aarti Industries Slips Post Demerger Announcement

Shares of Aarti Industries Ltd. fell 3.71% to Rs 921.65 apiece after the company announced on Thursday, the demerger of pharma business into Aarti Pharmalabs, a wholly owned subsidiary of Aarti Industries, as a going concern basis with effect from July 1, 2021.

  • The board of directors at the company approved to restructure the business and the scheme is subject to regulatory approval.

  • The demerged company has two business segments, Specialty Chemicals Business and Pharma Business.

  • Of the 22 analysts tracking the company, 12 maintained ‘buy’, 6 maintained ‘hold’ and 4 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 4%

Zydus & Italy’s CHEMI To Launch Enoxaparin Sodium Injection In The U.S. 

Zydus Pharmaceuticals Inc. U.S. ( a 100% subsidiary of Cadila Healthcare Ltd.) has signed a license and supply agreement with CHEMI SpA of Italy, to launch the generic equivalent of Sanofi Aventis’s branded product Lovenox (Enoxaparin Sodium injection) in seven dosage strengths in the U.S, according to exchange filings by Cadila Healthcare.

  • Enoxaparin Sodium injection is used for prophylaxis of deep vein thrombosis (DVT) in patients undergoing abdominal, hip or knee replacement surgery, and also for the treatment of acute DVT.

  • Enoxaparin injection had annual sales of approximately $513 million in the United States, according to IQVIA data as of June 2021.

Eicher Motors Slips As Shareholders Vote Against Reappointment Of Siddhartha Lal

Shares of Eicher Motors Ltd. shed over 2.5% to Rs 2,521.25 apiece in intraday trade before paring the losses.

Shareholders of Eicher Motors voted against the reappointment of Siddhartha Lal as managing director for a period of five years, at the company’s 39th Annual general meeting.

Also Read: Eicher Motors’ Shareholders Reject Siddhartha Lal’s Reappointment As MD

Of the 43 analysts tracking the company, 19 maintained ‘buy’, 10 maintained ‘hold’ and 14 maintained ‘sell’ recommendations with 22 analysts revising their price targets lower in the past month.

The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.8%

Shares of Eicher Motors rose 2% in 2021 so far compared to 7% gains for S&P BSE Auto index

Steel Strips Wheels Gets $11 Mn Export Orders From Western Hemisphere

Steel Strips Wheels Ltd. received new export orders valued close to $11 million from Western Hemisphere.

In an exchange filing, the company said that it will complete the execution of the orders by December 2021 from its Chennai and Dappar plants.

Steel Strips Wheels also anticipated orders of similar capacity in the coming months from similar customer base as businesses continue to recover rapidly.

The company has concluded 13 M&A deals, 11 investments and 2 other deals in the past 3 months, according to Bloomberg data.

HUL Shares Hit 52-Week High; Extend Gains For 7th Day

Shares of Hindustan Unilever Ltd. rose 2.97% to a 52-week high of Rs 2,560 apiece. The stock has been gaining for the seventh consecutive session.

  • Trading volume was 1.7 million shares, quadruple the 20-day average of 4,29,081 shares for this time of the day.

  • The relative strength index on the stock was above 70, suggesting that it may be overbought.

  • Analysts have 30 ‘buy’, 6 ‘hold’ and 4 ‘sell’ recommendations on the stock with 13 analysts raising the price targets over the past month.

  • The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.2%

AGS Transact Technologies Files for Up to Rs 800 Crore India IPO

AGS Transact Technologies Ltd.’s shareholders plan to sell as much as Rs 800 crore ($107 million) of shares in the ATM management and payment services provider’s initial public offering, according to its draft prospectus.

  • The company, which manages ATM machines and provides cash management services, is not selling any new shares in the IPO.

  • ICICI Securities, HDFC Bank and JM Financial are managing the IPO.

Electricity Meter Makers Surge On Govt’s Smart Meter Plan

Manufacturers of electricity meters surge after the power ministry rolled out a plan to switch customers to smart meters that would offer an option to prepay for power usage.

  • Shares of Schneider Electric Infrastructure surged as much as 14%, most since July 29.

  • Shares of HPL Electric & Power Ltd. gained 5% while Genus Power Infrastructures Ltd. added nearly 12%

  • On Thursday, the power ministry announced the timeline for replacing the existing meters with smart prepaid meters

UPL Shares Down The Most In Two Months

Shares of UPL Ltd fell 3.21, the most in two months, to Rs 737.75 apiece.

  • Trading volume was 1.06 million shares, 18% above the 20-day average of 8,99,282 shares for this time of the day.

  • Relative strength index on the stock was below 30, indicating it may be oversold.

  • Of the 31 analysts tracking the company, 27 maintained ‘buy’, 3 maintained ‘hold’ and 1 maintained ‘sell’ recommendations.

  • The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.6%.

Metal Stocks Slide; NMDC, JSW Steel Lead Decline

  • Metal stocks slipped in trade with S&P BSE Metal Index slipping over 5.5%.

  • All the constituents of S&P BSE Metal Index declined with NMDC and JSW Steel falling 7%.

  • Jindal Steel & Power Ltd. fell 7.4% to Rs 377.70 apiece, lower than any close since April 1. Trading volume on the company was 15 million shares, 36% above the 20-day average of 11 million shares for this time of the day.

  • Tata Steel and Vedanta Shares were down over 6%.

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

CarTrade Shares List At A Discount To IPO Price

CarTrade Tech Ltd. shares listed at Rs 1,575.05, a discount to its IPO price of Rs 1,618, on market debut.

  • The stock then fell as much as 5.4% to Rs 1,530.9.

  • The company is a multi-channel auto platform that operates under several brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

  • Through these platforms, it allows new and used automobile customers, dealerships, original equipment manufacturers and other businesses to buy and sell vehicles online.

Also Read: CarTrade Tech Shares List At A Discount To IPO Price

IndoStar Capital Finance Sheds 7% As OFS Opens

Shares of IndoStar Capital Finance Ltd. fell over 7% to Rs 314 apiece as offer for sale opened.

Promoters of IndoStar Capital Finance intends to sell up to an aggregate 6,189,737 equity shares today and on Monday, with an option to additionally sell up to 6,189,737 shares through a separate, designated window of the stock exchanges.

The sale is being undertaken by the promoters primarily for the purpose of achieving the minimum public shareholding in the company, according to an exchange filing by IndoStar.

Of the 4 analysts tracking the company, 2 maintained ‘hold’, 2 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.5%

NMDC Shares Down The Most In 10 Weeks

Shares of NMDC Ltd. fell 5.93%, the most in 10 weeks to Rs 157.05 apiece. Trading volume was 2.38 million shares, triple the 20-day average of 7,00,460 shares for this time of day.

Analyst Activity

  • Analysts have 14 buy, five hold, and five sell recommendations on the stock.

  • The overall consensus price of analysts tracked by Bloomberg implied an upside of 24.7%

Natco Pharma Falls After U.S. Court Upholds Patents On Imbruvica

Shares of Natco Pharma Ltd. slipped over 3.5% to Rs 931 apiece after U.S. court upheld patents on Imbruvica.

Natco Pharma and its market partner in the U.S. for the product, Alvogen Pin Brook LLC, would review the judgement, and evaluate all options to appeal it, according to an exchange filing by Natco Pharma.

Of the 15 analysts tracking the company, 7 maintained ‘buy’, 5 maintained ‘hold’ and 3 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17%. Shares of Natco Pharma shed nearly 2% in 2021 compared to 20.5% gains for S&P BSE Healthcare index.

Ujjivan Small Finance Bank Declines As MD & CEO Resigns

Shares of Ujjivan Small Finance Bank Ltd. shed nearly 8% to a record low Rs 22.35 apiece after the Managing Director and CEO Nitin Chugh resigned. The resignation will be effection from September 30.

“We hereby inform you that the Bank has received a letter dated August 18, 2021 from Mr. Nitin Chugh tendering his resignation from the position of Managing Director and CEO of the Bank w.e.f. close of business hours on September 30, 2021,” the bank told the bourses.

Of the 18 analysts tracking the company, 11 maintained ‘buy’, 4 maintained ‘hold’ and 3 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 35.2%. The relative strength index of the stock is 14, suggesting that it may be oversold. Shares of Ujjivan Small Finance Bank shed 41.2% in 2021 so far compared to 16.6% gains for Sensex.

Also Read: Ujjivan Founder Flags Asset Quality, Attrition Concerns As CEO Resigns

Opening Bell: Sensex, Nifty Open Lower; Banking, Metal Stocks Decline

India’s stock benchmarks declined, weighed by banking and metal stocks amid weak global cues as surge in cases due to delta virus strain and China’s regulatory curbs sapped sentiment.

The S&P BSE Sensex fell 0.60% to 55,298.05. The NSE Nifty 50 declined by similar magnitude to 16,455.15. HDFC Bank Ltd. contributed the most to the index decline, decreasing 1.1 percent. Hindalco Industries Ltd. had the largest drop, falling 4.3 percent.

Sensex, Nifty Snap Two-Week Winning Streak As Metal Stocks Weigh

The broader indices underperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap shedding 1%. All the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal slipping nearly 4%.

The market breadth was skewed in favour of bears. About 558 stocks advanced, 1,766 declined and 101 remained unchanged.

Wipro Expands Digital & Cyber Defense Center

Wipro Ltd. announced the launch of its @now Studio in partnership with ServiceNow to support digital transformations for customers, increase innovation, and develop unique industry solutions.

  • The @now Studio leverages ServiceNow’s digital workflows and simplified processes to develop customized solutions.

  • The studio will focus on building competencies, serving as a platform to develop and showcase solutions, accelerating co-selling and co-creation with ServiceNow, and leveraging the ecosystem including universities and leading start-ups, according to an exchange filing by the company.

  • The @now Studio is located at Wipro’s Technology Center in Plano, Texas where Wipro has a state-of-the-art facility focused on developing niche capabilities in new and emerging technologies.

  • This is Wipro’s first @now Studio. There are plans to launch additional studios in Europe and APMEA in the coming months.

Rupee Bonds May Drift Ahead Of Auction, RBI Minutes

Rupee bonds could trade in a range, as traders await a weekly auction that includes the benchmark 10-year note. Traders will also monitor the release of the minutes of the most recent RBI monetary policy committee meeting.

  • 10-year yields little changed at 6.23% on Wednesday.

  • Traders will pore over the minutes of the RBI’s MPC for details about the reasoning behind the dissent at the last monetary policy review that sent yields climbing.

  • USD/INR falls 0.1% to 74.2475 on Wednesday.

  • Global funds sold net Rs 595 crore of India Stocks Wednesday

    • They withdrew Rs 142 crore of corporate debt

    • State-run banks sold Rs 828 crore of sovereign bonds on Aug. 18: CCIL data. Foreign banks bought Rs 475 crore of bonds

SGX Nifty Hints At Gains; IndiGo, Zomato In Focus

Asian stocks fell on Friday as the fast-spreading delta virus strain stoked concerns about economic growth and China’s regulatory curbs sapped sentiment. The dollar was firm and commodities mostly held a decline.

Shares retreated in Japan, Hong Kong and China, where Beijing is continuing its crackdown on private industry. U.S. equity futures fluctuated after modest S&P 500 and Nasdaq 100 gains during a choppy overnight session. Treasuries held a climb and the dollar was around a nine-month high.

Commodities stabilised but their recent slump is flashing a warning about the impact of Covid-19’s resurgence on the global recovery. Commodity-linked currencies including the New Zealand, Canadian and Australian dollars slipped, with an extension to Sydney’s lockdown also weighing on the Aussie.

In China, state media scrutiny of online health care and medical beauty firms kept the focus on the government’s clampdown. Regulators also told China Evergrande Group to resolve debt problems, weighing on the bonds of a company that poses a potential systemic risk to the second-largest economy.

India’s SGX Nifty 50 Index futures for August delivery rose 0.2% to 16,373.00, while MSCI Asia Pacific Index -0.4%. The Nifty 50 fell 0.3% on Wednesday to 16,568.85. Indian markets were closed on Thursday.

CarTrade Tech to debut after IPO. ICICI Bank, Aditya Birla Capital, Graphite India, among others, are holding their annual shareholders’ meeting. Foreign investors bought net Rs 1930 crore of stocks on Aug. 17, according to NSDL website.

STOCKS TO WATCH

  • Advanced Enzyme: Buys Additional 15% stake in JC Biotech for Rs 21.13 crore.

  • Balrampur Chini: Indian sugar mills contract to export 70 lakh tonnes in 2020-21.

  • Bank of India: To participate in non-deal roadshows on Aug. 23.

  • CarTrade Tech: Shares to start trading after IPO.

  • Crisil: Raised to buy at Centrum Broking; Price target Rs 2,554.

  • Coffee Day: KKR Mauritius sold 19 lakh Coffee Day shares in bulk deal: NSE.

  • Dr. Reddy’s: Gets U.S. FDA tentative approval on Palbociclib Anda.

  • Hindustan Aeronautics: GE Aviation announces $716 million order from HNAL.

  • IndiGo: Says will commence flight operations to UAE from Friday.

  • UAE Bans IndiGo flights for a week on Covid testing breach: BS.

  • IndoStar Capital Finance: Holder offers 61.9 lakh shares.

  • JK Cement: Cut to reduce at Centrum Broking; price target Rs 2,920.

  • Lupin: Anda for Brivaracetam approved by U.S. FDA.

  • Oil & Natural Gas: Seeks partners for boosting output from 43 small fields.

  • Prime Focus: James Bond visual-effects house raises $250 million.

  • Reliance: Shuts down Nagothane division till Aug. 24.

  • Tata Motors: Jaguar Land Rover North America LLC files recall of 212,373 U.S. vehicles: NHTSA.

  • Ujjivan Small Finance: MD & CEO Nitin Chugh resigns.

  • UTI AMC: Cut to sell at Centrum Broking; price target Rs 1,400.

  • Vedanta: Exchange seeks clarification from Vedanta on Tuticorin unit.

  • Zomato: Completes acquisition of 9.16% stake in Grofers India.

. Read more on Markets by BloombergQuint.

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