Stock Market Live: Sensex, Nifty off day’s low, Rupee ends at 74.82/$; RIL, IT stocks contribute gains

Stock Market Live: Sensex, Nifty off day’s low, Rupee ends at 74.82/$; RIL, IT stocks contribute gains

Goldman Sachs India ups stake by nearly 1% in Rossari Biotech post listing

Goldman Sachs India has bought an additional 0.92 percent stake or 4,81,433 equity shares in Rossari Biotech at Rs 692.17 apiece, showed bulk deals data on the NSE on Thursday. The specialty chemicals manufacturer made a stellar debut on bourses on Thursday receiving strong interest from the retail investors as well as the anchor investors. After rallying about 75 percent over its issue price, the global investment banker acquired the additional nearly 1 percent stake.

The Rossari Biotech stock rose as much as 7 percent intraday to Rs 793.90 per share. At 1:34 pm, the shares traded 2.06 percent to Rs 756.95 on the NSE. Given the higher end of the IPO price band, the deal was struck at nearly 63 percent premium over its issue price. Learn more details here

Route One Investment gets RBI nod to raise its stake in IndusInd Bank to 10%

IndusInd Bank on Friday said that Reserve Bank of India (RBI) has allowed its existing shareholder, Route One Investment Company (ROIC), to raise stake in the bank.

“RBI has forwarded the bank a copy of the letter addressed to ROIC, approving increasing their shareholding up to 10 percent of the paid-up voting equity capital of IndusInd Bank Limited,” the bank said in its statement.

ROIC is a US-based hedge fund, that already holds approximately 4.96 percent of the issued and subscribed capital of the bank. IndusInd bank said that ROIC had approached the RBI seeking a prior approval to increase their stake in the bank up to 10 percent, which is the maximum permissible limit under current RBI norms.

The bank’s board, in its meeting on July 5, 2020, had granted its approval to the proposed acquisition of Route One Investment Company, and have now received a communication from RBI giving them the green signal. Read more here.

Rupee Update: The Indian currency ended with marginal losses on Friday, ending the week with gains. The rupee ended at 74.82 against the US dollar as compared to Thursday’s close of 74.76. 

RIL first Indian company to hit Rs 14 lakh crore market cap

The combined market capitalisation of Reliance Industries’ (RIL) fully paid shares and partly paid shares crossed Rs 14 lakh crore on Friday. RIL is the first Indian company to hit Rs 14 lakh crore in market cap, 75 percent above the m-cap of the second most valued company, TCS.

At the time of writing this report, the fully paid Reliance Industries shares were trading 3.68 percent higher at Rs 2,136.55 per share with a market cap of Rs 13,52,765.53 crore. The stock hit an all-time high of Rs 2,149.70 earlier today. The stock has gone up 16 percent since its AGM on July 15.

The partly paid (PP) shares of the company traded at Rs 1,268.65, higher by 7.43 percent on the BSE. The market cap of PP shares was at Rs 53,537.97 crore, taking the combined market cap to Rs 14,06,303.5 crore.

On Thursday, RIL’s fully paid shares’ market cap hit Rs 13 lakh crore. The energy to digital conglomerate has seen its market cap rising to Rs 13 lakh crore from Rs 12 lakh crore in just 8 trading sessions.

Goldman Sachs India ups nearly 1% stake in Rossari Biotech post listing

With stellar listing on Thursday, Rossari Biotech has received all the interest from the retail investors as well as the anchor investors.

After rallying about 75 percent over its issue price, Goldman Sachs India acquired an additional stake in the specialty chemicals manufacturer.On Thursday, the global investment banker bought 4,81,433 equity shares (0.92 percent stake) in Rossari Biotech at Rs 692.17 per share, showed bulk deals data on the National Stock Exchange.

The stock rose as much as 7 percent intraday to Rs 793.90 per share. At 1:34 pm, the shares traded 2.06 percent to Rs 756.95 on the NSE.

Given the higher end of the IPO price band, the deal was struck at nearly 63 percent premium over its issue price.

On July 10, Goldman Sachs had bought 1,95,271 equity shares at an issue price of Rs 425 through the anchor book.

Nirmal Bang feels rural sector is good theme for the next 6 months; do not see Nifty crossing 11,200 level

Rahul Arora of Nirmal Bang feels rural market is a very good theme to play for the next 6 months. He said, “I think it may be one of the bigger themes that will play out in the market despite the outperformance of any other theme. The lenders and the rural theme will continue to play out over the next 6 months till the end CY20.”

Regarding stock market, Arora said that it is about 50 percent higher from the lows and within 10 percent of making a new all-time high. “I think this run on the way up has over extended itself. However, Nifty won’t be crossing 11,200 level because it is building in too much of an earnings recovery and also trying to ignore economic aspects. New investors should wait for a bit of a correction. The risk on the long side is very elevated right now and I think potential retail investors could get a better market position to enter later,” added Arora. 

PNB Housing Finance hits upper circuit for second day; rises 10% in two sessions

The share price of PNB Housing Finance hit upper circuit for the second consecutive session, rising 5 percent on Friday after the NBFC reported stable earnings in the June quarter.

The stock has surged as much as 10 percent in two sessions to Rs 220.75 per share on the BSE. However, the stock has declined nearly 50 percent in 2020.

In Q1, the lender beat Street estimates but reported a 9.5 percent fall in consolidated net profit at Rs 257.18 crore as against Rs 284.47 crore in the year-ago quarter. The numbers were driven by stronger PPoP and significantly lower credit costs. Read more here

This broking stock delivered 178% returns in four months; CLSA upgrades target price by 39%

One of the India’s largest broking firms came up with stellar June quarter earnings by completely offsetting the pandemic effect. The firm reported a stunning growth because retail investors had invested money in stocks.

ICICI Securities has also delivered handsome returns to its shareholders in the past four months. The stock gave whopping 178 percent returns to its investors within just four months.

The stock is now trading near its all-time high of Rs 568 on the back of positive investor sentiment and strong growth.

In its quarter ended June 30, 2020, the broking firm reported a 70 percent jump in the net profit at Rs 193 crore, led by strong revenues and margin improvement. Read here what CLSA had to say

Market Watch: Jay Thakkar of Marwadi Shares & Financials

“Among the sectors, IT and pharma these are the two sectors which are really looking good for a short -term. Among the IT Infosys post results provided a very good upside and since then it has been consolidating now taking a good support at its upper end of the gap. I think this consolidation seems to have got over and from here on we can again see one more rally on the upside at least in the short-term so one can buy Infosys targeting around Rs 960-980 with a stop loss of Rs 890.”

“Whereas Nifty IT and Nifty Pharma are looking good, Nifty metal Index is looking a bit weak. I would say it seems to be taking good resistance around its 200 day moving average and it has been forming lower tops and lower bottom on the daily charts and the momentum is also weaker. I think among the metals stocks Hindalco is the one stock which has recently provided a breakdown from its 200 day moving average with an increase in volumes and we are also seeing some good amount of long unwinding out here. I would say one can sell Hindalco targeting around Rs 145 one can sell this with a stop loss of Rs 161.”

Biocon Q1 net profit declines 26% to Rs 167.8 crore; shares fall 2.5%

Biotechnology major Biocon shares fell 2.5 percet after it reported a 26.30 percent decline in its consolidated net profit at Rs 167.8 crore Q1 mainly on account of higher R&D spend and lower profitability in the Research Services segment. The company had posted a net profit of Rs 227.7 crore for the corresponding period of the previous fiscal, Biocon said in a late night filing to the BSE. Consolidated revenue from operations of the company stood at Rs 1,671.3 crore for the quarter under consideration, as against Rs 1,458.9 crore for the same period year ago, it added.

Jet Airways receives resolution plans from two bidders

The Resolution Professional for Jet Airways has received resolution plans from two of the four shortlisted bidders, which will be placed before the Committee of Creditors (CoC) for consideration, the grounded carrier said on Thursday. The bidders were shortlisted in the fourth round of invitation of bids. “…Pursuant to the said invitation of expression of interest and resolution plans, the Resolution Professional has received resolution plans for Jet Airways (India) Limited from two Prospective Resolution Applicants, which shall be placed before the Committee of Creditors for its consideration,” it said in an exchange filing. More here

AU Small Finance Bank stock hits 5% upper circuit after strong Q1 earnings

Shares of AU Small Finance Bank hit an upper circuit of 5 percent to Rs 794.55 in the early trade on Friday after the lender reported a strong set of numbers for the first quarter of fiscal 2021. The stock has risen over 116 percent from its 52-week low of Rs 366.20 apiece hit on May 27, 2020. The bank reported a 5.5 percent rise in net profit in Q1FY21 to Rs 200.8 crore from Rs 190.3 crore in Q1FY20. Its profit, excluding profit from the sale of equity shares of Avas Financiers Ltd, rose by 48 percent to Rs 177 crore as against Rs 119 crore.

Market Watch: Nischal Maheshwari, CEO, Institutional Equities & Advisory, Centrum Broking

On gold financiers

Both Muthoot Finance and Manappuram Finance have done pretty well. I don’t recommend anything because I think valuations are four-five times price to book, so it is a pretty rich valuation. So at these peak prices it is best avoided to add anything more.

On Reliance

If I look at three-five year view for Reliance, you should definitely be a buyer at these prices. A lot of things after the last AGM which the management clarified what they are planning to do, even a few of those projects comes to life, it makes a lot of sense to be invested in Reliance even at these levels. However, in the short-term, some amount of profit taking will happen and you will see some correction happening. But if I would have been three-five year kind of a guy, basically I would stay put and maybe add on every correction in Reliance.

Technical View | The market opened on a tepid note this morning. It could be a sign of mild exhaustion which could be due to profit booking. The support is at 11,050 and till that holds, we are in bull territory. For an impulsive upside to resume, we would need to go past 11,250 which will take us to 11,400-11,500, said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.

Rupee Opens | Indian rupee opened 19 paise lower at 74.94 per dollar against Thursday’s close of 74.75, amid selling seen in the domestic equity market.

Government imposes restrictions on public procurement from China, neighbouring countries

Amid the border row with China, the government on Thursday imposed restrictions on public procurement from China and other countries with common border. The Government of India amended the General Financial Rules 2017 to enable imposition of restrictions on bidders from countries which share a land border with India on grounds of defence of India, or matters directly or indirectly related thereto including national security, an official statement said. The Department of Expenditure has, under the said Rules, issued a detailed order on public procurement to strengthen the defence of India and national security, it said. More here

Opening Bell: Sensex, Nifty open lower dragged by banks, IT stocks

The Indian market opened lower on Friday following weakness in Asian peers amid tensions between the US and China. The indices were dragged minly by financials and IT stocks. Index heavyweights HDFC Bank, ICICI Bank, Kotak, Infosys, and HCL Tech contributed the most to the losses. At 9:18 am, the Sensex was trading 260 points lower at 37,880 while the Nifty lost 65 points at 11,149. All sectors except Nifty Pharma were in the red at opening. Nifty Bank and Nifty Fin services fell the most, down 1.5 percent each. The metal and auto indices were also down around 1 percent each and Nifty IT lost 0.4 percent. However, Nifty Pharma rose over 1 percent capping the losses.

Oil rises on weaker dollar, but virus woes and US-China tensions weigh

Oil edged up on Friday as the dollar fell to an almost two-year low, although demand concerns stemming from rising coronavirus cases and US-China tensions kept a lid on prices. The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually spurs buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies. 

Ashwani Lohani joins GMR Group as CEO, Services Business

Former Air India CMD Ashwani Lohani has joined GMR Group as CEO, Services Business, sources informed CNBCTV-18. “Ashwani Lohani is joining GMR group and he will be spearheading the growth of our services business in the capacity of CEO, reporting to the undersigned” GBS Raju, Chairman — Airports, GMR Group was quoted as saying in an internal company communication. Lohani was appointed as Air India CMD on Feb 13, 2019, on a contract basis for a one-year tenure.

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