The benchmark indices bounced into positive terrain in morning trade. At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 112.95 points or 0.29% at 38,958.77. The Nifty 50 index added 8.05 points or 0.07% at 11,513.
The broader market was negative. The S&P BSE Mid-Cap index fell 0.42% while the S&P BSE Small-Cap index slipped 0.18%.
The market breadth is negative. On the BSE, 948 shares rose and 1255 shares fell. A total of 138 shares were unchanged.
India-China standoff:
Sixth round of Corps Commander-level talks between India and China on border stand-off will be held from Monday (21 September) at Moldo. The talks will include the implementation of a five-point agreement reached between the two Foreign Ministers at the SCO summit in Moscow on disengagement of troops and de-escalation of the situation in eastern Ladakh.
Parliament passes two Farm Bills:
Parliament passed two bills aimed at transforming agriculture in the country and raising farmers' incomes. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 which were passed by Lok Sabha on 17 September 2020, were passed by the Rajya Sabha on 20 September.
The new legislation will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations. The farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs. The Bill also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically. In addition to mandis, farmers will get freedom to do trading at farmgate, cold storage, warehouse, processing units, etc. Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.
New Listing:
Route Mobile were trading at Rs 645 at 10:26 IST on the BSE, a premium of 84.29% over the initial public offer (IPO) price of Rs 350.
The stock was listed at Rs 708, a premium of 102.29% to IPO price of Rs 350 a share. So far the stock hit a high of Rs 735 and low of 625. On the BSE, 17.33 lakh shares were traded on the counter so far. The issue opened for bidding on 9 September 2020 and closed on 11 September 2020. The price band for the IPO was set at Rs 345-350 per share.
The IPO of Route Mobile received bids for 89.23 crore shares as against 1.21 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 73.30 times. The non-institutional investors category was subscribed 192.81 times. The qualified institutional buyers (QIBs) category was subscribed 89.76 times. The retail individual investors (RIIs) category was subscribed 12.67 times.
Buzzing Index:
The Nifty IT index rose 2.12% to 20,247.30, extending gains for eight day in a row. The index has added 10.87% in eight sessions while the benchmark Nifty 50 index has added 1.86 during the same period.
MindTree (up 3.08%), Tech Mahindra (up 2.24%), Infosys (up 1.96%), Coforge (up 1.93%), TCS (up 1.88%) and Wipro (up 1.86%) edged higher.
HCL Technologies gained 4.13% to Rs 844.60. The IT firm announced its intent to acquire DWS, a leading Australian IT, business and management consulting group. The acquisition of DWS will strongly enhance HCL's contribution to Digital initiatives in Australia and New Zealand while strengthening HCL's client portfolio across key industries. The transaction is expected to close in December 2020, subject to closing conditions, including regulatory approvals.
The acquisition shall be done by HCL Australia Services Pty., a wholly owned step-down subsidiary of HCL Technologies at A$1.20 per share for total equity value pay-out at A$158.2 million.
Stocks in Spotlight:
Bandhan Bank fell 3.05% to Rs 289.60. The bank reportedly said that its collection efficiency ratio has touched 80% at the end of August, and expected collections to normalise by December. The ratio, which is improving on a "daily basis", is likely to be over 90% in October, it reportedly added.
Tata Metaliks slipped 1.03% to Rs 547.85. The company on Saturday (19 September 2020) informed about the execution of a planned shutdown of one of its blast furnaces and its associated facilities at the company's Kharagpur plant for repair & maintenance including hearth profiling. The operations are expected to be back on stream in 2nd half of October 2020, it added.
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