Here are the key highlights from today's trading session:
1. Market extends gaining streak to 6 days; Sensex & Nifty at 7-month highs
2. IT biggest contributor to market after strong earnings by TCS
3. Nifty IT surges to 16-year high with most of its constituents at multi-year highs
4. Sensex gains 304 points to 40,183 & Nifty 96 points to 11,835
5. Nifty Bank advances 227 points to 23,191 & Midcap index 18 points to 17,146
6. ONGC, Oil India see profit booking after yesterday's gain on gas marketing reforms
7. Wipro board to mull buyback on October 13; stock at 20-year high
8 .TCS’ better-than-expected earnings & Rs 16,000 crore buyback helps stock gain 3%
9. Vedanta under pressure as delisting process is underway; stock down 14% this week
10. Just Dial, Mindtree, Cadila Healthcare, Biocon, PTC, Apollo Hospital top Midcap gainers
11. Market Breadth favours declines; advance-decline ratio at 3:4
Closing Bell: Sensex, Nifty end higher for 6th day; Wipro top gainer, closes over 7%
Indian shares ended higher for sixth consecutive day on Thursday led by gains in IT stocks after Wipro's shares closed over 7 percent on buyback plans.
At close, the Sensex ended 304 points higher to 40,182 while Nifty50 index ended at 11,834, up 96 points. Broader indices underperformed the benchmarks, with Nifty Midcap 100 index closing 0.10 percent higher while NiftySmallcap 100 index closing 0.23 percent lower.
Cipla was the second top gainer, up 5 percent followed by TCS, UltraTech Cement and Infosys. GAIL, ONGC, ITC, Eicher Motors and L&T remained the index top losers.
Barring FMCG and media indices, all sectors ended in the green. IT index remained the best-performing index of the day, closing over 3 percent.
Auto recovery helping sales, raw material costs may rise: Kansai Nerolac
Paint stocks like Asian Paints and Berger Paints are at record highs. Demand recovery, unlock and lower crude prices are key reasons for the uptick and Kansai Nerolac is likely to benefit from recovery in auto sales.
Autos contribute 20-25 percent to our revenue and this sector doing well will help us, said HM Bharuka, Vice Chairman and Managing Director of Kansai Nerolac in an interview with CNBC-TV18.
The company is hoping for a good festive season to boost sales.
Cost cutting is important but investment for future is more important, Bharuka added.
According to him more than demand, managing supply side is an issue for the company. From here onwards there will be a slight rise in the raw material prices rather than any reduction. Click here to watch the video
Residential sales at 54% of pre-COVID levels, says Knight Frank
At least four top property markets have seen residential sales volumes in Q2 FY21 exceed 50 percent of their quarterly average before the COVID-19 pandemic, a study revealed.
A real estate report released by property consultant Knight Frank claims that in the July-September quarter, developers across eight property markets sold 54 percent of their average quarterly sales figures in 2019.
“While the overall real estate sector dynamics continue to remain strained, there has been a meaningful improvement in sales and launches in the quarter,” said the report, authored by Knight Frank’s Vivek Rathi (Director, Research) and Yashwin Bangera (Vice President, Research). Read more
Is there is a decadal opportunity in IT sector? Gartner explains
The September quarter earnings season has started with TCS being the first company to report and it has come out with a better than expected set of numbers. The pick up in growth for the sector is likely to be driven by reduced impact of supply-side constraints along with a healthy demand environment. Most of the providers have mentioned a drastic rise in cloud adoption, said DD Mishra of Gartner in an interview to CNBC-TV18. “It’s because many of the customers are speeding up their transformation which is related to cost and cloud gives an opportunity to optimize and reduce the cost and that is where the response and the recovered phase is right now working together for many of the organization,” he added. Watch the video for more
Net equity outflow at Rs 1,009 crore in September, says AMFI
The total assets under management have reduced to Rs 26.86 lakh crore, as against Rs 27.50 lakh crore (MoM) in September, Association of Mutual Funds in India (AMFI) said on Thursday. The net equity outflow stood at Rs 1,009 crore versus Rs 4,029 crore outflow (MoM), while the hybrid fund outflow came in at Rs 4,219 crore. The liquid fund outflow stood at Rs 65,952 crore, as against Rs 15,814 crore outflow (MoM). Total debt scheme outflow came in at Rs 51,962 crore versus an outflow of Rs 3,908 crore (MoM). ETF inflows stood at Rs 3,515 crore versus s inflow of Rs 1,722 crore (MoM) and credit risk outflow came in at Rs 539.5 crore versus Rs 554 outflow (MoM).
Currency impact neutral in Q2; salary increments like last year, says TCS
IT bellwether Tata Consultancy Services (TCS) reported a net profit of Rs 7,475 crore for the quarter ended September. Revenues for the quarter stood at Rs 40,135 crore.
In constant currency terms, dollar revenue was $5,424 million, a growth of 4.8 percent.
For the quarter, the currency impact on earnings was neutral despite the fluctuations in both the dollar as well as other major currencies, said V Ramakrishnan, CFO of TCS in an interview to CNBC-TV18.
He said the company’s dependence on H-1B visas has been significantly low. Watch Reema Tendulkar's video on this
Wipro shares surge over 9% to hit 52-week high on buyback plan
Wipro shares surged over 9 percent to hit a 52-week high on Thursday after the IT firm said its board will consider a buyback plan on October 13. The announcement comes on a day when larger rival Tata Consultancy Services (TCS) board has cleared a Rs 16,000 crore buyback plan.
The stock jumped as much a 9.6 percent to its 52-week high of Rs 367.75 per share on BSE. Wipro is the third IT services firm to announce a share buyback after TCS and Majesco.
"…the Board of Directors will be considering a proposal of buyback of equity shares of the company at the…meeting scheduled to be held on October 13, 2020," Wipro said in a regulatory filing. No other details were provided.
Other IT stocks also rallied on positive sentiment after TCS beat street expectations in the September quarter. The stock was up over 5 percent lifting the IT index to over 5 percent in intra-day deals. Infosys, Tech Mahindra and HCL Tech also jumped 4-5 percent.
Mazagon Dock Shipbuilders IPO allotment: Registrar Alankit's website crashes as investors rush to check allotment status
The website of Alankit Assignments, the registrar for Mazagon Dock Shipbuilders IPO crashed on Wednesday as investors rush to check allotment status.
The Rs 444-crore public issue of Mazagon Dock Shipbuilders witnessed an overwhelming response from investors as it was subscribed 157.4 times during September 29-October 1. To check your allotment status, click here
Mazagon Dock Shipbuilders IPO allotment finalized: Check your status here
Mazagon Dock Shipbuilders IPO has been finalized today, and will be listed on October 12. The price band of the IPO is fixed at Rs 135-145.
The issue was fully subscribed on its first day of the initial public offering (IPO) on Tuesday. The public issue was subscribed 157.4 times by the end of the third day of bidding (October 1), thus managing to surpass recent listings like Happiest Minds Technologies and Chemcon Speciality Chemicals.
It is expecting to raise about Rs 413 crore at the lower price band and Rs 444 crore at the upper price band.
The unblocking of funds from ASBA account is likely to start around October 8 and the shares will be credited to the account of eligible investors by October 9. The status will only appear post allotment if the details are entered correctly. In the case of non-allotment, the blocked amount will be refunded to your bank account. For more details, click here