Sensex rallies 958 pts, Nifty settles above 17,800 mark; realty stocks soar

September 23,2021

The domestic equity barometers ended near the day's high after a robust session on Thursday. The Nifty closed above the 17,800 mark. Strong global cues boosted sentiment. Barring the Nifty Media index, all the sectoral indices on the NSE ended in the green. Banks, financials and realty shares were in demand.

The barometer index, the S&P BSE Sensex, surged 958.03 points or 1.63% to 59,885.36. The Nifty 50 index advanced 276.30 points or 1.57% to 17,822.95. Both the indices attained record closing high levels.

The S&P BSE Sensex hit a record high of 59,957.25 and the Nifty hit an all-time high of 17,843.90 in late trade.

Bajaj Finserv (up 5.15%), Larsen & Toubro (up 3.46%), HDFC (up 3.11%), Reliance Industries (up 2.43%), HDFC Bank (up 2.33%) and ICICI Bank (up 1.99%) boosted the indices.

The broader indices lagged the benchmarks. The BSE Mid-Cap index rose 1.28% and the BSE Small-Cap index gained 0.91%.

The market breadth was strong. On the BSE, 1,974 shares rose and 1,266 shares fell. A total of 163 shares were unchanged.

Global shares rallied as investors cheered the U.S. Federal Reserve's decision to keep interest rates unchanged Wednesday. The central bank signaled that it would trim its monthly bond-buying program before year-end.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 23,00,90,110 with 47,19,197 deaths. India reported 3,01,640 active cases of COVID-19 infection and 4,46,050 deaths while 3,28,15,731 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

A total of 83,34,67,089 COVID-19 vaccine doses have been administered in the country so far, with over 71.21 lakh doses being given yesterday, according to the Co-WIN dashboard.

Economy:

India has attracted Foreign Direct Investment (FDI) inflow of $27.37 billion during first four months of this financial year which is 62% higher as compared to corresponding period last financial year.

Commerce and Industry Ministry said the measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The Ministry said FDI equity inflow also grew by 112% in the first four months of this financial year compared to same period last year.

Automobile Industry' has emerged as the top sector with 23% share of the total FDI equity inflow followed by computer software and hardware with 18% and services sector at 10%.

Meanwhile, the Bhartiya Janta Party (BJP) today said the Indian economy is on recovery path and government has taken several new initiatives which will further boost the economy. Briefing media in New Delhi, party spokesperson Gopal Krishna Agarwal said the labour force participation has increased to 40.1% in 2019 -20. Agarwal said direct tax collection has also increased by 28% as compared to pre COVID period. He added that indirect tax collection has also increased along with export.

Further, Agarwal added that India's ranking in Global Innovation Index has improved to 46 as compared to 81 in 2015.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.140% as compared with 6.138% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.64, compared with its close of 73.87 during the previous trading session.

MCX Gold futures for 5 October 2021 settlement fell 0.51% to Rs 46,432.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.25% to 93.22.

In the commodities market, Brent crude for November 2021 settlement fell 19 cents at $76 a barrel. The contract rose $1.83, or 2.46% to settle at $76.19 a barrel in the previous trading session.

Foreign Markets:

US Dow Jones index futures were up 166 points, indicating a strong opening in the US stocks today.

European stocks rallied across the board while most Asian stocks advanced on Thursday as global markets reacted to the latest statements from the U.S. Federal Reserve in which it said it was not ready to taper monetary stimulus yet.

Investors continue monitoring the situation surrounding China Evergrande Group. As per reports, China Evergrande Group's chairman said the firm's top priority is to help wealth investors redeem their products, though questions remain over whether the embattled Chinese developer will pay the interest due on a dollar-denominated bond on Thursday.

US stocks rallied on Wednesday after the Federal Reserve indicated it doesn't see an imminent rollback of the monetary stimulus that has been supporting the economy throughout the pandemic.

The Fed did not give a specific timeline on when it may begin moderating its purchases. “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the Fed's post-meeting statement said.

The central bank has been buying $120 billion a month of Treasury and mortgage-backed securities since the start of the COVID-19 crisis. The Federal Open Market Committee voted unanimously to keep short-term rates anchored near zero on Wednesday.

The Fed is split on the timing of the first interest rate hike. Wednesday's so-called dot plot of projections showed nine of the 18 FOMC members expect a rate increase in 2022. That's up from seven in June's Fed projections.

Buzzing Index:

The Nifty Realty index surged 8.66% to 493.90, extending gains for third day. The index has added 22.04% in three sessions.

Oberoi Realty (up 13.46%), Godrej Properties (up 12.61%), DLF (up 8.89%), Sobha (up 8.04%) and Hemisphere Properties India (up 7.91%), Indiabulls Real Estate (up 6.23%), Prestige Estates (up 5.96%), Sunteck Realty (up 5.96%), Brigade Enterprises (up 3.81%) and The Phoenix Mills (up 1.12%) surged.

Real estate developers are likely to post record sales booking numbers in the second half of the financial year 2021-22 led by new launches as the momentum of robust response from homebuyers witnessed so far is expected to be continued during the festive October-December quarter, a domestic brokerage reportedly said in a report.

According to the report issued by another domestic brokerage, Mumbai residential real estate is on an upswing, as property registrations recorded in the first 21 days of September show that the numbers have crossed the levels seen in September 2018, and is expected to break the record of the last decade.

The report suggested that more than 6,000 units have been registered in the first 21 days of September, surpassing the September 2018 total of 5,913 units. It is expected to cross 7,000 units, a record in the last decade. The average daily registration in September was 300 units, up from 225 units in August.

Stocks in Spotlight:

The Telecom Regulatory Authority of India (TRAI) released the telecom subscription data for July 2021 on Thursday, 23 September 2021.

India's total mobile users rose 0.51% month-on-month to 118.68 crore as of 31 July 2021.

Reliance Jio added 65.18 lakh new subscribers in the month of July 2021 and its total subscriber based stood at 44.32 crore. Reliance Industries (RIL), which controls Reliance Jio, rose 2.43%.

Vodafone Idea (up 1.83%) lost 14.30 lakh new subscribers in the month of July 2021 and its total subscriber based stood at 27.19 crore.

Bharti Airtel (down 0.08%) added 19.42 lakh new subscribers in the month of July 2021 and its total subscriber based stood at 35.40 crore.

Separately, Bharti Airtel said its rights issue will open on Tuesday, 5 October 2021 and close on Thursday, 21 October 2021. A total of upto 39,22,87,662 shares will be offered as part of the rights issue, the company's special committee of directors for rights issue decided at its meeting held on Wednesday, 22 September 2021.

The rights shares will be issued at a price of Rs 535 per fully paid-up share. Eligible investors will receive one share for every 14 shares held as on the record date. The telecom major has fixed 28 September 2021 as the record date for rights entitlement in the issue.

The company will raise upto Rs 20,987.39 crore assuming full subscription and receipt of all call monies with respect to rights equity shares.

Jindal Steel & Power (JSPL) gained 1.34%. The company received grant of mining lease from the Government of Odisha for Kasia Iron & dolomite mine. The company has been declared as the preferred bidder for the mine at a premium of 118.10%.

The Kasia Mine has a large resource of 278 million tonnes of iron ore and it consists of an average Fe grade of approx. 62.5%. The mine has favourable lumps to the fine ratio of 20:80. The mine also has an Environmental Clearance (EC) of 7.5 MTPA.

Tejas Networks was locked in an upper circuit of 5% at Rs 414.8 after the company on Thursday announced that it has been selected by Bharti Airtel to enhance the telecom operator's optical network capacity in metropolitan markets.

JBM Auto surged 12.95%. after the commercial vehicle manufacturer received orders for supply of five hundred CNG/electric buses.

IDFC shed 0.54%. Shareholders of IDFC have rejected the proposal to re-appoint Vinod Rai as non-independent and non-executive director to the board. Vinod Rai is currently the non-executive chairman of IDFC and his term ended on 30 July 2021.

The resolution for appointment of Rai till 22 May 2023 was rejected as 62.3% shareholders voted against it. While 37.7% shareholders voted in favour, according to the information shared with the stock exchanges on 22 September 2021 post the 24th annual general meeting of the firm.

Housing Development Finance Corporation (HDFC) rose 3.11%. The counter registered volume of 17.08 lakh shares, a 28.95 times spurt over two-week average daily volume of 0.59 lakh shares. Volumes stood at 1.02 lakh shares in the last session.

RBL Bank jumped 4.10%. Shareholders of RBL bank approved the reappointment of Vishwavir Ahuja as the managing director and chief executive for the fourth term.

According to the results of the voting held at the 21 September 2021 annual general meeting, as much as 99.94% of shareholders who participated in the voting favoured the reappointment of Vishwavir Ahuja as the managing director (MD) and chief executive officer (CEO) for the fourth term beginning June this year.

In January 2021, the board of RBL Bank had approved a three-year extension for Ahuja from 30 June 2021 to 29 June 2024.

However, in June this year the Reserve Bank of India (RBI) approved only a one-year extension for Ahuja as MD & CEO of the bank with effect from 30 June 2021.

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