Indices gain for 6th day as financials zoom; Sensex ends 354 pts higher
All that happened in the markets today
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NSE's Nifty ended at 11,648, up 88 points or 0.76 per cent.
The bulls continued to dominate markets on Friday, thanks to a healthy buying in financial counters. The S&P BSE Sensex gained for the sixth consecutive session to settle at 39,467 levels, up 354 points, or 0.9 per cent.
NSE's Nifty ended at 11,648, up 88 points or 0.76 per cent. Volatility index, India VIX, continued to decline and ended at 18.24 levels, down nearly 3.5 per cent.
Among individual stocks, IndusInd Bank (up over 8 per cent) ended as the top gainer on the Sensex, followed by Axis Bank, ICICI Bank, and Sun Pharma. On the other hand, Power Grid (down over 1 per cent) ended as the biggest loser on the index.
On a weekly basis, Sensex gained 2.6 per cent while Nifty added 2.4 per cent.
In the broader market, the S&P BSE MidCap index gained 0.55 per cent to 15,238 levels while the S&P BSE SmallCap index ended at 14,990.55, down 0.23 per cent.
Among sectoral indices on the NSE, Nifty Bank rallied nearly 1,000 points or over 4 per cent to settle at 24,588.95 levels. All the 12 constituents on the index ended in the green. READ MORE
Buzzing stocks
Shares of NMDC ended around 12 per cent higher at Rs 107.50 apiece on the BSE, a day after the company reported its financial results for the quarter ended June 2020 (Q1FY21). READ MORE
Among sectoral indices on the NSE, Nifty Bank rallied nearly 1,000 points or over 4 per cent to settle at 24,588.95 levels. All the 12 constituents on the index ended in the green. READ MORE
Buzzing stocks
Shares of NMDC ended around 12 per cent higher at Rs 107.50 apiece on the BSE, a day after the company reported its financial results for the quarter ended June 2020 (Q1FY21). READ MORE
Telecom stocks advanced at the bourses. The telecom companies are awaiting the Supreme Court's judgement in the adjusted gross revenue (AGR) case. After several rounds of hearings, the apex court had, on Monday, reserved its judgment in the case. On the last day of hearing, the court had observed that if telecom companies are unwilling to pay their dues, it would direct the Union government to cancel their spectrum allocation and licence. READ MORE
Global markets
Global markets
Global shares struggled for direction on Friday as investors worried about a lack of detail in the US Federal Reserve’s policy shift while Japanese markets were roiled as Prime Minister Shinzo Abe resigned for health reasons.
The Fed’s widely-awaited shift in its policy framework saw the central bank place more emphasis on boosting economic growth and less on worries about letting inflation run too high. The policy aims for 2 per cent inflation on average so that too low a pace would be followed by an effort to lift inflation “moderately above 2 per cent for some time.”
Asian shares outside of Japan limped higher, with the MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.19 per cent.
Oil prices fell as storm Laura raced inland past the heart of the US oil industry in Louisiana and Texas without causing any widespread damage to refineries.
(With inputs from Reuters)
4:15 PM
MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services
Indian benchmark indices ended the week in gains following mixed global cues. Financials led the gains in today's trade with both Private and Public Sector banks participating. Global markets were trading uncertain following the US Fed reserve’s policy shift to focus on economic growth and less on inflation. However, the indication that the US Fed would continue to let interest rates remain low and expectation of more stimulus to follow boosted the Indian markets. The stimulus and the associated liquidity are important to our markets since that has been one of the drivers for the current stock market run. As per NSDL, FPI net investments into Equity, as a whole, have been around Rs 45,000 crores, which makes it one of the best months for net inflows.
WEEK AHEAD
The economic data coming out indicates a slow recovery in progress for the Indian economy and as such the GDP data due out next week, is expected to be a non-event, barring any surprise deviation. The market is expected to continue the momentum. Barring, valuation concerns, the positive commentary and earnings upgrades of the results season has boosted the attractiveness of some stocks. There could be a slight consolidation in the markets when profit booking emerges, but it is not likely to be a long-drawn-out correction.
3:43 PM
SECTOR WATCH:: Nifty Bank zooms nearly 1,000 pts
3:42 PM
MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex
3:36 PM
CLOSING BELL
The S&P BSE Sensex rallied 354 points or 0.9 per cent to settle at 39,467 while NSE's Nifty ended at 11,648, up 88 points, or 0.76 per cent.
3:27 PM
MARKET CHECK
3:22 PM
INDEX GAINER:: IndusInd Bank jumps 10%
3:11 PM
BROKERAGE VIEW:: Centrum Broking on Can Fin Homes
Can Fin Homes (Canfin) overall earnings were slightly better than our estimates. AUM growth was 9.7% YoY while NIM at 3.8% was better due to the lower cost of funds. Hence PPoP outperformed led by higher NII. The overall business has reached 65-70% of pre-COVID levels and the company is targeting a loan book of Rs230bn+ in FY21E which could translate to 11%+ YoY loan growth. Provisions remained elevated at Rs441mn and total COVID-19 provisions stand at Rs0.73bn (2.5% of unpaid EMI book). 28% of the loans are under moratorium (SENP:salaried mix is 55:45) while 14% of the book has paid no installments. D/E ratio has further improved QoQ and CET-1 ratio at 20.5% remains strong. See FY21E RoA/RoE of 1.6%/15%. Maintain multiple at 2.2x FY22 ABV with TP of Rs 437. BUY.
3:08 PM
BUZZING STOCK:: Mahindra Logistics jumps 8%
3:00 PM
Heatmap: S&P BSE Sensex gainers and losers at this hour
2:52 PM
June Quarter Result :: SJVN reports standalone PAT of Rs 301 crore vs Rs 420 crore YoY
>> Revenue from operations at Rs 674.89 cr vs Rs 712.49 cr YoY
2:47 PM
BUZZING STOCK:: Ramco Systems hits 5% upper circuit
2:46 PM
When will India finally have access to coronavirus vaccine?
Analysts at Bernstein said that Serum Institute of India (SII) was best positioned to deliver the first vaccine.
While indigenous vaccine candidates are few, India scores highly on the global capacity equation. Among SII, Bharat Biotech, Biological E and some smaller players, India produces around 2.3 billion doses of various vaccines every year. SII is the largest manufacturer of vaccines globally, with a capacity of around 1.5 bn doses, to be scaled to 1.95 billion doses by the end of 2020. READ MORE
2:40 PM
» More on 52 Week High
Stocks that hit 52-week high on BSE today
| COMPANY | PRICE(rs) | 52 WK HIGH | CHG(%) |
|---|---|---|---|
| ATUL | 6199.00 | 6441.40 | -1.10 |
| COROMANDEL INTER | 808.25 | 830.75 | 0.80 |
| DIVI'S LAB. | 3274.55 | 3378.65 | 0.16 |
| DIXON TECHNOLOG. | 8335.00 | 8821.85 | -3.23 |
| GMR INFRA. | 25.80 | 28.25 | 0.39 |
2:32 PM
ICICI Bank, Axis Bank contribute the most to Sensex's 400-point gain today
2:32 PM
BROKERAGE VIEW :: Goldman Sachs on IT
Investment ideas: TCS upgraded to Buy; HCL Tech upgraded to Neutral
>> While cyclically the momentum remains strong for Tech services going into FY22E, even strengthening, we believe a number of structural tailwinds are emerging including the scaling up of digital projects with the modernization of IT stacks for more robust business continuity planning.
>> With the most efficient supply chains, we believe India IT services companies are positioned favorably to benefit from a third wave of outsourcing after previous waves in 2000 (post Y2K) and in 2008-09 (post GFC).
>> Due to these tailwinds and given our macro team’s further increase in Global/US GDP estimates on a sharper recovery, we increase our FY22E-23E sector revenue and earnings forecasts by up to 7% and now forecast 12.6% USD revenue growth in FY22E (vs. -2.7% in FY21E, and vs. prior 9.7%) for theTop 5 Indian IT firms.
>> While cyclically the momentum remains strong for Tech services going into FY22E, even strengthening, we believe a number of structural tailwinds are emerging including the scaling up of digital projects with the modernization of IT stacks for more robust business continuity planning.
>> With the most efficient supply chains, we believe India IT services companies are positioned favorably to benefit from a third wave of outsourcing after previous waves in 2000 (post Y2K) and in 2008-09 (post GFC).
>> Due to these tailwinds and given our macro team’s further increase in Global/US GDP estimates on a sharper recovery, we increase our FY22E-23E sector revenue and earnings forecasts by up to 7% and now forecast 12.6% USD revenue growth in FY22E (vs. -2.7% in FY21E, and vs. prior 9.7%) for theTop 5 Indian IT firms.
Topics : Markets GMR Infrastructure Hindustan Aeronautics Tata Sons Limited Tata Motors Max India MARKET WRAP
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First Published: Aug 28 2020 | 7:37 AM IST
