Key indices ended a volatile trading session with small gains on Tuesday. Gains were capped due to mixed global cues. The Nifty saw profit booking after hitting a record high of 17,438.55 in morning trade. Profit selling towards the fag end dragged the Nifty below the 17,400 mark.
The barometer index, the S&P BSE Sensex, rose 69.33 points or 0.12% at 58,247.09. The Nifty 50 index gained 24.70 points or 0.14% at 17,380, its record closing high.
HDFC (down 1.07%), Hindustan Unilever (down 0.78%), HDFC Bank (down 0.3%) and Infosys (down 0.24%) were major drags.
HCL Technologies (up 2.54%), Kotak Mahindra Bank (up 1.67%) and TCS (up 1.07%) supported the indices.
The broader market ended on a firm note. The BSE Mid-Cap index rose 1.09% and the BSE Small-Cap index gained 0.63%.
The market breadth was positive. On the BSE, 1,881 shares rose and 1,305 shares fell. A total of 158 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 22,52,72,687 with 46,39,678 deaths. India reported 3,62,207 active cases of COVID-19 infection and 4,43,213 deaths while 3,24,84,159 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
In the last 24 hours, India recorded 25,404 new cases. Active cases accounted for 1.09% of total cases. The recovery rate currently stands at 97.58% with 37,127 recoveries in the last 24 hours taking the total recoveries to 3,24,84,159.
Economy:
The annual rate of Wholesale Price Index (WPI) based-inflation stood at 11.39% (provisional) for the month of August 2021 as compared to 0.41% in August 2020. The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum & natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc. as compared the corresponding month of the previous year.
India's Consumer Price Index-based Inflation (CPI) for August 2021 came in at 5.30%, compared with 5.59% in July 2021, as food prices cooled further, especially in the case of vegetable inflation, data released by the National Statistical Office (NSO) showed on 13 September 2021.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.199% as compared with 6.192% at close in the previous trading session.
In the foreign exchange market, the rupee was flat against the dollar. The partially convertible rupee was hovering at 73.68, compared with its close of 73.68 during the previous trading session.
MCX Gold futures for 5 October 2021 settlement fell 0.19% to Rs 46,818.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.06% to 92.62.
In the commodities market, Brent crude for November 2021 settlement rose 60 cents at $74.11 a barrel. The contract rose 59 cents, or 0.81% to settle at $73.51 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe were trading lower while Asian indices closed on a mixed note on Tuesday, as global investors await inflation data from the US, which could inform the Federal Reserve's timing for tapering its monetary stimulus.
European Central Bank (ECB) policymaker Isabel Schnabel on Monday, said that the ECB is ready to act if inflation does not ease as soon as next year, as currently expected.
In the US, the S&P 500 closed higher on Monday, ending a five-day losing streak as investors focused on potential corporate tax hikes and upcoming economic data. The Dow Jones Industrial Average also advanced, but the Nasdaq Composite Index ended lower.
Buzzing Indian Segment:
Shares of Zee Group companies witnessed strong demand. Zee Entertainment Enterprises (ZEEL) (up 39.99%), Zee Learn (up 20%) and Zee Media Corporation (up 5%) surged.
Invesco Developing Markets Fund and OFI Global China Fund LLC, the largest shareholders of Zee Entertainment Enterprises (ZEEL), have called for an extra-ordinary general meeting (EGM) to remove Punit Goenka from the firm's board as director. Goenka, son of Essel Group founder and chairman Subhash Chandra, is managing director and chief executive officer of ZEEL.
Invesco Developing Markets Fund and OFI Global China Fund LLC together own a 17.88% stake in ZEEL. The two institutional investors also called for the removal of two of ZEEL's independent directors, Ashok Kurien and Manish Chokhani. The letter also proposed the appointment of six independent directors, including Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta. ZEEL requires approval from the Information & Broadcasting Ministry for the appointment of any new independent directors. “The Company is examining the said letter, its related attachments and will take necessary action as per applicable law,” ZEEL said in a filing to the stock exchange.
In a separate announcement on 13 September, ZEEL informed that Chokhani and Kurien resigned as non-executive non-independent directors.
Dish TV India hit an upper circuit of 10% at Rs 21.31 after The Hindustan Times bought 2 crore equity shares (or 1.08% stake) of the company at Rs 19.22 per equity share via bulk deals on NSE on Monday, 13 September 2021.
Last week, Dish TV announced that YES Bank has proposed to oust the company's entire board, including Jawahar Lal Goel, the promoter and managing director. The bank said the existing board is purportedly acting at the behest of certain minority shareholders holding a mere 6% of shares in the company.
YES Bank has issued a notice asking the company to put its proposal to vote at Dish TV's annual general meeting on 27 September 2021.
Shares of YES Bank jumped 12.91% to Rs 12.51.
Stocks in Spotlight:
Zomato rose 0.63% to Rs 144.10 after Gaurav Gupta, one of the top executives of food tech platform, decided to leave the company.
The company is yet to issue an official clarification to stock exchanges. Gupta, who joined Zomato in 2015 was elevated as Chief Operating Officer in 2018 and as the founder in 2019.
Zomato surged as much as 6.67% to hit the record high of Rs 152.75 in the morning trade. Following the news update, the stock nosedived over 10% from the day's high to hit an intraday low of Rs 136.20 in the afternoon trade.
Separately, the media reported that Zomato has decided to stop its grocery delivery service from 17 September on the back of gaps in order fulfillment leading to poor customer experience. The online food delivery firm also pulled the plug on Nutraceutical business. Zomato had ventured into the nutraceutical business last year with the launch of health and fitness products.
Escorts jumped 6.64% to Rs 1469.80. The stock hit a record high of Rs 1477.15 in late trade today. The company signed a Memorandum of Understanding (MoU) with IndusInd Bank in a bid to provide financial offerings to its customers. The two will work together to understand the financial needs of the customers and will jointly come up with various financial programs to enable customers invest in modern farm machinery to enhance their farm productivity and income
Godawari Power & Ispat (GPIL) hit an upper circuit of 5% at Rs 1,269.90 after the company said that its board has approved the proposal for sub-division of equity share of face value of Rs 10 each of the company into two equity shares of Rs 5 each (2-for-1), subject to approval of the shareholders of the company. The company's board has also decided to issue bonus shares in the ratio of 1:1 by capitalizing the free reserves after the proposal for split of the shares is approved by the shareholders of the company.
ISGEC Heavy Engineering surged 8.99% after the company received an order for 25 medical oxygen plants from the Defence Research & Development Organisation (DRDO), Ministry of Defence, Government of India. The scope of work includes manufacturing, supplying, installing, and commissioning.
KNR Constructions advanced 2.75% after the company received letter of acceptance (LoA) for a road project in Hyderabad, Telangana. The company is in receipt of letter of acceptance for Hyderabad Growth Corridor (HGCL) for widening of existing service roads in Hyderabad, in the state of Telangana. The contract is worth Rs 312.79 crore. The project is to be completed within a period of 15 months from the date of signing of agreement.
Laurus Labs rose 0.83% after the company, along with Unitaid and the Clinton Health Access Initiative, announced an agreement to accelerate development of second and third-line HIV medication for children.
New Listings:
Shares of Ami Organics settled at Rs 934.55 on the BSE, at a premium of 53.20% compared with the IPO price of Rs 610 per share. The scrip was listed at a price of Rs 902 per share, at a premium of 47.87% as compared with issue price. The stock has hit a high of 967.25 and a low of 841.20 in the trading session. On BSE, 19.46 lakh shares of the company were traded in the counter till now.
The initial public offer (IPO) of Ami Organics received bids for 42.22 crore shares as against 65.42 lakh shares on offer, according to stock exchange data. The issue was subscribed 64.54 times. The issue opened for bidding on 1 September 2021 and closed on 3 September 2021. The price band of the IPO was fixed at Rs 603-610 per share.
Shares of Vijaya Diagnostic Centre settled at Rs 619.30 on the BSE, at a premium of 16.63% as compared with the issue price of Rs 531 per share. The scrip was listed at a price of Rs 542.30 apiece, at a premium of 2.13% as compared with issue price. The stock has hit a high of 634.40 and a low of 533.65 in the trading session. On BSE, 15.49 lakh shares of the company changed hands.
The initial public offer (IPO) of Vijaya Diagnostic Centre received bids for 11.36 crore shares as against 2.50 crore shares, according to stock exchange data. The issue was subscribed 4.54 times. The issue opened for bidding on 1 September and closed on 3 September 2021. The price band of the IPO was fixed at Rs 522-531 per share.
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 in the price band of Rs 734 to Rs 744 per share.
As on 16:51 IST, the IPO received bids for 63,53,660 shares. The issue was subscribed 52% 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.
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