Sensex spurts 745 pts; Nifty above 17,760 mark

September 23,2021

The benchmark indices hit a fresh intraday high during early afternoon trade. Positive global cues boosted sentiment. At 12:20 IST, the barometer index, the S&P BSE Sensex, jumped 744.89 points or 1.26% at 59,672.22. The Nifty 50 index surged 214.80 points or 1.22% at 17,761.45.

In the broader market, the S&P BSE Mid-Cap index added 1.15% while the S&P BSE Small-Cap index rose 1.10%.

The market breadth was strong. On the BSE, 2,092 shares rose and 1,019 shares fell. A total of 162 shares were unchanged.

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

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%.

Primary Market:

Paras Defence and Space Technologies IPO opened for subscription from Tuesday (21 September) and it will close on Thursday (23 September).

The offer comprises of a fresh issue of up to Rs 140.60 crore and an offer for sale of up to 17,24,490 equity shares (including anchor portion of 29,27,485 equity shares) in the price band of Rs 165 to Rs 175 per share.

As on 12:15 IST, the IPO received bids for 44.51 crore shares as against 71.40 lakh shares on offer. The issue was subscribed 62.34 times so far.

The company intends to utilize the net proceeds from the fresh issue towards purchase of machinery and equipment amounting Rs 34.657 crore, funding incremental working capital requirements amounting Rs 60 crore, repayment or prepayment of all or certain borrowings amounting Rs 12 crore and for general corporate purposes. As of 31 July 2021, its aggregate outstanding indebtedness was Rs 115.827 crore.

Paras Defence and Space Technologies is primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 23,00,90,110 with 47,19,193 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.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.04% to 16.50. The Nifty 30 September 2021 futures were trading at 17,763.90, at a premium of 2.45 points as compared with the spot at 17,761.45.

The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 22.2 lakh contracts at the 18,000 strike price. Maximum Put OI of 32.6 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty Metal index rose 1.30% to 5,596.65. The index jumped 5.41% in three trading sessions.

APL Apollo Tubes (up 3.84%), Coal India (up 3.42%), Adani Enterprises (up 2.68%), Hindalco Industries (up 2.15%) and National Aluminium Co. (up 2.12%) were the major gainers in the Metal segment.

Stocks in Spotlight:

Jubilant Ingrevia rose 1.36% after Jubilant Life Sciences International, Singapore, the wholly owned subsidiary of Jubilant Ingrevia, divested its entire 10% stake, consisting of 5,40,463 shares, held in Safe Foods Corporation on Tuesday, 21 September 2021, for a consideration of $18.2 million (approx. Rs 134.20 crore) pursuant to approval of the plan of merger between Safe Food and Packers Sanitation Services Inc. The current book value of Safe Foods Investment, reflected at fair value through other comprehensive income is $6.5 million (approx. Rs 47.80 crore).

Ahluwalia Contracts (India) gained 1.90% after Aditya Birla Sun Life Mutual Fund (MF) bought 8,15,000 equity shares (or 1.21% stake) of the company at Rs 369.50 per share via bulk deals on NSE on Wednesday, 22 September 2021. On the same day, promoter Sudershan Walia sold 18,00,000 equity shares (or 2.68% stake) of the company at Rs 369.59 per equity share via bulk deals on NSE.

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