Stock Markets Live: Sensex, Nifty Extend Gains; Smallcap Index Hits Record High

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Smallcap Index Hits Record High

The S&P BSE SmallCap index rose as much as 0.7% to 26,263.03, a record high for the benchmark.

The index has risen for a third straight session today.

CDSL’s Stock Hits Record High; RSI Over 85

Shares of Central Depository Services (India) Ltd. gained as much as 14.9%, the most since Sept. 02 of last year to Rs 1244.70 – a new all-time high for the stock.

  • The stock has risen for the last four sessions in a row.

  • The shares are up 18% in the past 5 days and rose 24% in the past 30 days.

  • Trading volume was more than eight times the 20-day average for this time of day.

  • The relative strength index on the stock was 85, indicating it may be overbought.

On July 8, CDSL said it has become the first depository to open four crore plus active demat accounts. “CDSL is pleased to announce it becomes the first depository to open four crore plus (40 million) active Demat accounts. It is currently the largest depository in the country in terms of active Demat accounts,” the depository said in a statement on July 8.

Earnings Disappointment A Risk For Indian Stocks: JPMorgan

Equity investors in India face the risk of earnings disappointment after a rally that’s propelled the local stock benchmark to successive records this year, according to JPMorgan Chase & Co.

As business activity resumes following one of the world’s deadliest coronavirus outbreaks, consensus earnings estimates may end up being overdone, said Sanjay Mookim, head of India equity research at JPMorgan.

“Valuations in India are looking extended,” Mookim said in a video interview. “There is an expectation or belief that reopening equals growth. We see many reasons that, even if we open up, we may not be in a very strong economic growth path.”

To read the full story, click here

Rupee Bonds Gain on Lower-Than-Expected Retail Inflation

Indian sovereign bonds rise after data showed retail inflation for June and core inflation were below estimates.

  • Yield on 5.63% 2026 bond drops 5bps to 5.7%, while that on 6.64% 2035 bond falls 3bps to 6.74%

  • USD/INR down 0.2% to 74.4425

  • Consumer price inflation accelerated 6.26% in June y/y, the Statistics Ministry said in a statement on Monday after close of market hours.

    • That’s slower than the median forecast of a 6.59% gain in a Bloomberg survey, although well above the upper limit of the Reserve Bank of India’s 2%-6% target band

  • Softer-than-expected CPI inflation along with broad-based moderation in core inflation is expected to provide relief to the MPC to continue with the pro-growth policy guidance in the near term, according to a Kotak Mahindra Bank note

  • While much depends on the incoming data, we expect the onset of gradual policy normalization towards the end of FY2022

Quick Heal Technologies Climbs To Over Three-Year High

Shares of the antivirus software maker rose as much as 7.4% to Rs 308.90, the highest since June 13, 2018.

This after the company reported a consolidated revenue from operations of Rs 333 crore in FY21, up 16% from Rs 286 crore in FY20.

It said the recovery is “commendable” since business was severely impacted during the initial part of the year because of the lockdown restrictions.

The recovery in the retail segment was stronger with 24% increase in revenue, while the enterprise segment grew by 9%, according to its annual report on exchanges. In the enterprise segment in the first two quarters of the year, the company said the government spending was less, and the SME segment also faced some liquidity pressure.

Stock Insight

  • The shares are up 3.9% in the past 5 days and rose 23% in the past 30 days.

  • Total return is 75.5% year-to-date vs 10.9% for Sensex Index

  • The relative strength index on the stock was above 70, indicating it may be overbought.

Sunteck Realty Jumps The Most In Nearly Eight Months

Shares of the real estate company rose as much as 8.5%, the most since Nov. 24 last year, to Rs 379.20 after its first-quarter business update.

  • Total collections for the April to June period at Rs 172 crore.

  • Presale number for the first quarter was Rs 176 crore.

Kamal Khetan, chairman and managing director of Sunteck Realty Ltd. said the company saw strong momentum in operational performance during the quarter.

“Both pre-sales and collections witnessed sturdy growth along with high collections efficiency. The industry consolidation is leading to a rise in the share of business for organised developers and Sunteck will be one of the biggest beneficiaries of this trend,” he added.

Stock Insight

  • The stock has risen for a seventh straight session — its best stretch of gains since March 2019.

  • Trading volume was more than 30 times the 20-day average for this time of day.

  • The relative strength index on the stock was above 70, indicating it may be overbought.

  • Sunteck Realty trades at 59 times its estimated earnings per share for the coming year.

Also Read: Demand for New Homes Sends India’s Realty Index to a Decade High

Opening Bell

Indian equity benchmarks climbed, along with Asian peers, as investors assessed positive economic data and the ongoing earnings season.

The S&P BSE Sensex rose as much as 0.7% at 52,716.83, while the NSE Nifty 50 Index gained by a similar magnitude at 15,796.25. ICICI Bank Ltd. contributed the most to the index gain and had the largest move, increasing 1.8%. Seventeen of the 19 sector sub-indexes compiled by BSE Ltd. advanced, led by the S&P BSE Realty Index, which surged to close at a decade high.

Investors are looking ahead to Infosys’s results on Wednesday, after rival Tata Consultancy Services posted an earnings miss last week.

The outlook for rainfall may weigh on the economy, with India receiving 242 millimeters of rains during this monsoon season, which runs through September, compared with the typical 261.8 millimeters. The season waters more than half of India’s farmland.

“Progress of monsoon, Q1FY22 corporate earnings and Covid-19 positivity rates will be in focus in the near term,” said Binod Modi, head of strategy at Mumbai-based Reliance Securities Ltd. Investors must focus on quality stocks with robust earnings visibility and margins of safety, he said.

Shree Renuka 34.3 Lakh Shares Change Hands At Rs 40.75 Each

A block of 34.3 lakh shares in Shree Renuka Sugars Ltd., equivalent to 0.4% of float, traded at a market value of Rs 13.99 crore at 9:15 a.m. Mumbai time.

  • The price was Rs 40.75 per share, a premium of 4.6% from Monday’s close; Shree Renuka rose 4.9% Monday and is up 236% this year

  • The block represents 14% of the 20-day average volume

Reliance Jio Adds Most Active Users For Second Straight Month In April

Reliance Industries was among the biggest boosts to the Sensex. Its telecommunications unit Jio added net 4.76 million mobile customers in April, according to data from a regulatory authority.

Also Read: Reliance Jio Adds Most Active Users For Second Straight Month In April

Rupee Bonds May Gain On Lower-Than-Estimated CPI

Indian bonds may be supported after data Monday showed retail inflation grew at a slower-than-estimated pace. Traders will also look forward to a Rs 17,950 crore ($2.4b) sale of state bonds.

  • Consumer price inflation accelerated 6.26% in June YoY, the Statistics Ministry said in a statement on Monday after close of market hours. That’s slower than the median forecast of a 6.59% gain in a Bloomberg survey, although well above the upper limit of the Reserve Bank of India’s 2%-6% target band

  • May industrial production rose 29.3% YoY, est, 32%, separate data showed

  • Softer-than-expected CPI inflation along with broad-based moderation in core inflation is expected to provide relief to the MPC to continue with the pro-growth policy guidance in the near term, according to a Kotak Mahindra Bank note

    • While much depends on the incoming data, we expect the onset of gradual policy normalization towards the end of FY2022

  • USD/INR down 0.1% to 74.5775 on Monday

    • Implied opening from forwards suggest spot may start trading around 74.52

  • Yield on 6.64% 2035 bond rose 1bp to 6.77% on Monday; new 6.1% 2031 bond yield up 1bp to 6.11%

Also Read: CPI Inflation Remains Above RBI’s Target Band For Second Straight Month

SGX Nifty Rises Along With Asian Peers As Focus Shifts To Earnings

Asian stocks advanced Tuesday after their U.S. counterparts notched yet more all-time highs as investors awaited second-quarter earnings season.

An MSCI gauge of the region’s stocks rose for a second day, with modest gains across the board.

India’s SGX Nifty 50 Index futures for July delivery rose 0.8% to 15,817.50, while MSCI Asia Pacific Index gained0.8%. The NSE Nifty 50 Index was little changed Monday at 15,692.60.

U.S. futures fluctuated after the S&P 500 and tech-heavy Nasdaq 100 closed at new highs. Investors are also focusing on the U.S. inflation report and Federal Reserve Chair Jerome Powell’s testimony this week as policy makers prepare to discuss tapering stimulus as the economy recovers from the pandemic.

Elsewhere, oil was steady after dipping for the first time in three days as traders grappled with the demand implications of a Covid-19 resurgence in several regions and slowing economic growth in China.

Back home, Tata Metaliks is scheduled to report earnings Tuesday. Adani Power, Adani Green, Adani Transmission, Mindtree are among companies holding their annual shareholders’ meeting. Foreign investors sold net Rs 1,000 crore of stocks on June 9, according to NSDL website.

Also Read: All You Need To Know Going Into Trade On July 13

. Read more on Markets by BloombergQuint.

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