Closing Bell: Market ends higher led by auto, bank stocks; Tata Motors top gainer
Indian indices ended higher on Wednesday, tracking the gains in auto stocks post Finance Minister's comment on two-wheelers that the GST Council may consider a rate revision for the segment.
At close, the Sensex ended 230 points higher to 39,073 while the Nifty50 index ended at 11,550, up 77 points. Broader market outperformed the benchmarks yet again, with Nifty Midcap100 and Nifty Smallcap 100 indexes closing 0.55 percent and 1.05 percent respectively.
Barring FMCG and pharma, all sectors ended in green. Nifty Media remained the best-performing index of the day, closing 2.48 percent higher followed by Nifty Private Bank (+1.87 percent) and Nifty Auto (+1.56 percent).
Tata Motors and Hero MotoCorp remained the top gainers of the Nifty50 index. Meanwhile, Bharti Airtel and UltraTech Cement were the index top losers.
Gold retreats as dollar gains; all eyes on Powell speech
Gold fell on Wednesday as the dollar strengthened, with investors awaiting US Federal Reserve Chairman Jerome Powell's speech for monetary strategy cues, but worries over the pandemic-ravaged global economy kept prices above the $1,900 mark. Spot gold was down 0.5 percent at $1,918.77 per ounce by 0651 GMT. US gold futures edged 0.1 percent higher to $1,925.30. Gold's retreat toward a key support level of $1,910 "is partly attributed to the US dollar's intra-day rebound, as traders await Powell's speech", said DailyFx strategist Margaret Yang. The dollar index rose 0.2 percent against rivals, making gold expensive for other currency holders, with focus on Powell's speech at Jackson Hole on Thursday, expected to provide further clarity on the US central bank's view on inflation and monetary policy.
Stock Update: KNR Constructions bagged an order worth of Rs 1,157 crore from the Tamil Nadu government, informed the company's exchange filing. The project is to be completed within 48 months from the appointed date. The order includes construction of an elevated highway along Avinashi road in Coimbatore city, added the filing. At 2:54 pm, the stock traded 0.15 percent higher to Rs 266.60 per share on the NSE.
Aditya Agarwala of Yes Securities suggests two recommendations
Aditya Agarwala suggested Kotak Mahindra Bank as it has just broken out it's ascending triangle pattern and volumes. "I have a buy call on Kotak with a target of Rs 1,500 on the upside and a stop loss at Rs 1,375 on the downside," said Agarwala. His second recommendation is V-Guard Industries. According to him, the stock witnessed massive volume activity in the last few trading sessions and after a sustained downtrend, the stock has finally managed to cross its consolidation phase backed by good volumes. One can buy V-Guard for target of Rs 187-190 on the upside keeping a stop loss at Rs 173 on the downside, added the market expert.
Air passenger traffic, airline departures doubled between May 4th week and August 3rd week
As fear of coronavirus is subsiding, the ministry of civil aviation (MOCA) on Tuesday said air passenger traffic and airline departures have doubled between May 4th week and August 3rd week.
According to the ministry, domestic air passenger on August 23 stood at 98,874 against 44,593 on May 31. Also, it recorded 997 domestic departures on August 23 against 501 on May 31.
Online travel company EaseMyTrip said Srinagar-Delhi, Patna-Delhi sectors have seen the maximum demand, while Delhi–Mumbai, Kolkata–Bengaluru and Delhi–Bengaluru sectors have seen high demand. Here's more on this
Supreme Court hits out at Centre in interest waiver case; says can't hide behind RBI, must clarify its position
The Supreme Court on Wednesday asked the Centre to clarify its position on the waiver of interest, waiver of interest on the interest. Hitting out at the government during the hearing on the plea seeking interest waiver for a six-month moratorium on loans announced by the Reserve Bank of India (RBI), the apex court observed that the banking regulator's position will add to the confusion. It said the Centre must clarify its position under the Disaster Management Act as it has got ample powers under it.
It said the government should not think about only business, it should also think about the plight of the people. The stand of the RBI so far is aligned with concerns of the industry and the government seems to be hiding behind the RBI, the apex court said. Here's more on this
Two-wheeler stocks surge after Finance Minister hints at GST rate revision
Two-wheeler stocks including Hero MotoCorp, Bajaj Auto and TVS Motors saw a strong upmove on Wednesday after Finance Minister Nirmala Sitharaman said that the GST Council will consider lowering taxes on two-wheelers as they are neither luxury goods nor a sin good.
Hero MotoCorp's shares surged the most by hitting its 52-week high, the shares gained as much as 5.21 percent to Rs 3,124.85 per share on the NSE. Meanwhile, TVS Motors and Bajaj Auto rose as much as 7 percent and 4 percent to Rs 477 and Rs 3,138 respectively.
Extending hope for the industry and the consumers, while responding to a question at a CII forum about the need for lowering GST rates on 2-wheelers, Finance Minister Nirmala Sitharaman said, “this was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision. Consequently, this will be taken up with the GST Council.”
Currently, two-wheelers attract 28 percent GST and those above 350cc attract an additional cess of 3 percent over and above the 28 percent GST rate. The industry has been demanding for a rate reduction, especially for the segment below 150cc, but the Council has still not taken up this issue. Let’s see whether this is taken up this time in the September meeting or is slated for later.
Gold rate today: Yellow metal trades flat with negative bias; support placed at Rs 50,640 per 10 grams
Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Wednesday tracking a subdued trend in the international spot prices amid strength in the US dollar.
At 11:20 am, gold futures for October delivery eased 0.05 percent to Rs 50,900 per 10 grams as against the previous close of Rs 50,924 and opening price of Rs 51,165 on the MCX. Silver futures traded 1.21 percent lower at Rs 63,231 per kg. The prices opened at Rs 64,398 as compared to the previous close of Rs 64,007 per kg.
“The trend in gold and silver prices is expected to remain bearish due to strength in the US dollar and signs of progress in US-China trade talks,” said Ajay Kedia, Director Kedia Commodity.
“On MCX, resistance for gold is placed at Rs 51,500 and support at Rs 50,640. Gold may trade bearish and we may see Rs 50,250 levels,” Kedia said. Read more
Trending Stock: Affle India's shares traded 5 percent higher to Rs 2,941.40 per share on the NSE after the company won a contract from the Singapore Government to build a digital and cloud-based commuter survey platform for its Land Transport Authority (LTA). The total value of the contract is over $1 million, said the company's exchange filing.
Indiabulls Housing jumps 8% on timely payment of interest for NCDs
Shares of Indiabulls Housing Finance jumped 8 percent on Wednesday after the company informed exchanges that it has made timely payment of interest for Non-convertible Debentures (NCDs), issued by the company. The sentiment was also lifted by media reports saying that the company is in the final stages of negotiating a deal with Oaktree to raise $200 million (Rs 1,500 crore) in debt.