SSPL WEALTH PVT LTD

Mid - Session

Market behaviours during the course of the trading session.

Sensex rallies 493 pts, Nifty above 18,170; breadth positive

13-Oct-21 13:31 Hrs IST

The domestic equity market shrugged mixed global cues and marched higher in afternoon trade. Auto and metal shares rallied while realty and FMCG shares declined.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 492.51 points or 0.82% at 60,776.82. The Nifty 50 index gained 182.35 points or 1.01% at 18,174.30.

The Sensex hit a record high of 60,789.65 and the Nifty hit an all time high of 18,177.95 in afternoon trade.

The broader market displayed strength. The S&P BSE Mid-Cap index rose 1.52% while the S&P BSE Small-Cap index added 0.80%.

On the BSE, 1857 shares advanced while 1406 shares declined and 152 shares were unchanged.

Stocks In Action:

Infosys (up 0.90%), Mindtree (up 0.79%) and Wipro (up 0.32%) advanced ahead of their Q2 results today.

Index major Reliance Industries (RIL) rose 1.63%. Reliance New Energy Solar (RNESL), a wholly owned subsidiary of RIL, has invested $29 million as a strategic lead investor in Germany-based NexWafe GmbH's (NexWafe) Series C financing round.

Separately, RNESL and Denmark-based Stiesdal have signed a cooperation agreement for technology development, and manufacturing of Stiesdal's hydrogen electrolyzers in India.

Power Grid Corporation of India rose 3.62% after the state-owned transmission player's board okayed an investment of Rs 14.23 crore for an electric vehicle charging station in Navi Mumbai and to create an arm to undertake telecom and digital technology businesses.

Bajaj Finserv was up 0.29%. Trustee company under the name of Bajaj Finserv Mutual Fund Trustee has been incorporated as a wholly owned subsidiary of the company.

Lupin was up 0.87%. Ace investor Rakesh Jhunjhunwala has sold his stake in the pharma major as his name did not appear in the list of key shareholders of Lupin as of 30 September 2021. Jhunjhunwala held 1.60% in the pharma major as at end June 2021.

Tata Motors jumped 20%. The auto major and and TPG Rise Climate entered into a binding agreement whereby TPG Rise Climate along with its co-investor ADQ, shall invest in a subsidiary of Tata Motors that will be newly incorporated.

TPG Rise Climate along with co-investors shall invest Rs 7,500 crore in compulsory convertible instruments to secure between 11% to 15% stake in this company translating to an equity valuation of up to $9.1 billion.

The new company shall leverage all existing investments and capabilities of Tata Motors and will channelise the future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies. Over the next 5 years, this company will create a portfolio of 10 EVs and in association with Tata Power, catalyse the creation of a widespread charging infrastructure to facilitate rapid EV adoption in India.

Economy:

In its latest World Economic Outlook report, released on Tuesday, the International Monetary Fund (IMF) said that Indian economy is expected to grow by 9.5% in 2021 and 8.5% in the next year.

The global growth projection for 2021 has been revised down marginally to 5.9% and is unchanged for 2022 at 4.9%.

India's industrial production rose 11.9% in August, according to the data released by the National Statistical Office (NSO) on Tuesday. The manufacturing sector, which constitutes 77.63% of the Index of Industrial Production (IIP), grew 9.7% in August, mining sector output rose 23.6% in August, while power generation increased 16 per cent.

Retail inflation growth in India based on Consumer Price Index (CPI) eased to 4.35% in the month of September following a 5.30% in August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed.

Global Markets:

Most European shares declined in early trade while most Asian stocks were trading higher on Wednesday, as concerns around global growth and inflation continue to concern investors.

US stocks decline for the third consecutive session Tuesday ahead of a key inflation reading and a kick-off to third-quarter earnings season.

The Federal Open Market Committee on Wednesday is also set to release its minutes from the September meeting. Investors will be digesting the minutes for any potential clues regarding the central bank's plans to pull back easy monetary policy.