Sensex jumps 443 pts, Nifty ends above 17,665; Hindalco jumps over 3%

The headline equity indices registered impressive gains on Monday, shrugging off negative global cues. After opening a tad below the 17,550 level, the Nifty 50 index witnessed strong buying, which pushed the index above the 17,650 mark. Shares rose across the board with media, metals, banks and financials gaining the most.

The barometer index, the S&P BSE Sensex, advanced 442.65 points or 0.75% to 59,245.98. The Nifty 50 index added 126.35 points or 0.72% to 17,665.80.

Hindalco Industries (up 3.35%), JSW Steel (up 3.11%), NTPC (up 1.79%), ITC (up 1.73%), Sun Pharmaceutical Industries (up 1.58%) and Reliance Industries (up 1.45%) were major index gainers.

In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index gained 0.89%.

The market breadth was strong. On the BSE, 2208 shares rose and 1348 shares fell. A total of 180 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.57% to 19.66.

Economy:

The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from July`s four-month low of 55.5 to 57.2 in August, highlighting a rebound in growth. The upturn was attributed to stronger gains in new business, ongoing improvements in demand, job creation and overtime work.

Meanwhile, the S&P Global India Composite PMI Output Index rose from 56.6 in July to 58.2 in August, indicating a sharp pace of expansion.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.219 as compared with 7.232 at close in the previous trading session.

In the foreign exchange market, the rupee advanced against the dollar. The partially convertible rupee was hovering at 79.7925, compared with its close of 79.87 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement gained 0.25% to Rs 50,495.

The 10-year U.S. Treasury yield was hovering at 3.195%.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.21% to 109.76.

In the commodities market, Brent crude for November 2022 settlement jumped $2.65 or 2.85% at $95.67 a barrel.

Global Markets:

The Dow Jones futures were up 86 points, indicating a positive opening in the US stock market today.

European shares tumbled on Monday after Russia extended a halt on gas flows down the Nord Stream 1 pipeline to Europe, sparking worries over energy prices and growth and spurring governments to announce emergency measures.

Asian stocks ended mixed today as investors digest the results of a private survey on Chinese services sector activity. China`s Caixin Services Purchasing Managers` Index came in at 55.0, compared with July`s print of 55.5.

The au Jibun Bank Japan Services Purchasing Managers` Index dropped to a seasonally adjusted 49.5 for August, lower than 50.3 in July. The marginal decline marks the first contraction in service sector business activity since March, S&P said in the report, citing the recent spike in Covid cases in the nation.

US stocks closed lower on Friday, as early gains from a jobs report that showed a labor market that may be starting to loosen gave way to worries about the European gas crisis.

American employers slowed down their hiring in August in the face of rising interest rates, high inflation and sluggish consumer spending. The US government reported on Friday that the economy added 315,000 jobs last month, down from 526,000 in July and below the average gain of the previous three months. The unemployment rate rose to 3.7%, from a half-century low of 3.5% in July.

Meanwhile, the G-7 agreed to explore the prospect of imposing a ban on shipments of Russian oil above a certain price in June. The statement from the G-7 added that the price cap`s effectiveness and impact would be closely monitored and revisited as necessary. The G-7 price cap on Russian oil comes as Western economic powers seek to deplete Russia`s war chest.

Stocks in Spotlight:

Skipper rose 17.97% after the company announced that it secured fresh orders worth Rs 225 crore for several domestic & international T&D projects, including telecom.

Reliance Power hit an upper circuit limit of 10% after the company said it will raise long term resources upto Rs 1,200 crore ($150 million) from Varde Partners.

Angel One gained 0.91%. The brokerage company said that its client base climbed 81.9% to 11.18 million in August 2022 as against 6.15 million in August 2021. On a sequential basis, the company`s client base rose by 4% month on month (MoM) from 10.75 million clients in July 2022.

GMR Infrastructure shed 1.01%. The company`s board approved raising upto Rs 6,000 crore in one or more tranche(s) through issue of securities.

One 97 Communications (PayTM) fell 2.60%. The company, which operates under the Paytm brand, on Sunday denied any link with the merchants that are under the Enforcement Directorate scanner in the Chinese loan app case. The ED on Saturday said it has conducted raids at six premises of online payment gateways, such as Razorpay, Paytm and Cashfree in Bengaluru, over the alleged irregularities in instant app-based loans "controlled" by Chinese persons.

Bharat Electronics (BEL) rose 1.02%. BEL has signed a MoU with Smiths Detection, a global leader in threat detection and security inspection technologies, for offering advanced, high-energy scanning systems to the Indian market. The MoU will leverage the high-end, technological capabilities of both the firms to meet India`s domestic security needs.

Olectra Greentech advanced 2%. The company said that it has received letter of award (LoA) from one of the State Transport Corporations for 100 electric buses.

Chalet Hotel lost 0.32%. The company and its wholly owned subsidiary viz. Chalet Airport Hotel Private Limited have executed the License Agreement with Delhi International Airport with regard to designing, developing, financing, operating, managing and maintaining of a terminal hotel at a site opposite to Terminal 3, at the IGI Airport, New Delhi.

Trident added 3.02%. The company announced that Abhinav Gupta has tendered his resignation from the chief financial officer (CFO) and key managerial personnel position. Gupta was relieved from his services with effect from 3 September 2022 post working hours.

Federal Bank rose 3.43%. The media reported that the bank is in preliminary talks with Kotak Mahindra Bank for a potential merger deal. Reacting to the media report claiming its merger with Kotak Mahindra Bank, Federal Bank clarified that the report is "speculative in nature". In an exchange filing today, it said that there was "no such information available with the company".

Dixon Technologies (India) advanced 2.38%. The domestic LED TV manufacturer said that it is the first contract manufacturer in India to get the sub licensing rights relating to Android & Google TV.

KPI Green Energy added 2.86%. The company informed about the setting up green hybrid capacities totalling 16.10 MW at Bhavnagar, under the Gujarat hybrid power policy 2018. The power producer said that the hybrid power project comprises of wind and solar capacity that would be developed at its Bhungar site in Mahuva at Bhavnagar, Gujarat.

Primary Market:

The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 72,56,228 shares as against 87,12,000 shares on offer, according to stock exchange data 17:00 IST on Monday (5 September 2022). The issue was subscribed 83%.

The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

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