Nifty 17857.25 (-1.94%)
Sensex 59984.7 (-1.89%)
Nifty Bank 39508.95 (-3.34%)
Nifty IT 34913.6 (-1.66%)
Nifty Financial Services 18987.55 (-2.65%)
Adani Ports 688.10 (-7.74%)
Asian Paints 3116.30 (0.70%)
Axis Bank 758.35 (-3.70%)
B P C L 420.80 (-1.61%)
Bajaj Auto 3700.70 (-2.01%)
Bajaj Finance 7484.25 (0.03%)
Bajaj Finserv 17987.70 (-0.13%)
Bharti Airtel 689.75 (-1.79%)
Britannia Inds. 3681.90 (-0.43%)
Cipla 891.75 (-3.33%)
Coal India 166.55 (-4.06%)
Divis Lab. 5121.15 (-0.55%)
Dr Reddys Labs 4569.95 (-1.99%)
Eicher Motors 2527.50 (-2.18%)
Grasim Inds 1702.40 (-1.50%)
H D F C 2900.80 (-0.49%)
HCL Technologies 1152.00 (-2.14%)
HDFC Bank 1593.60 (-2.99%)
HDFC Life Insur. 683.10 (-1.55%)
Hero Motocorp 2667.75 (-0.83%)
Hind. Unilever 2389.65 (-0.29%)
Hindalco Inds. 468.80 (-2.30%)
I O C L 128.65 (-1.64%)
ICICI Bank 798.70 (-4.35%)
IndusInd Bank 1176.00 (2.93%)
Infosys 1703.90 (-1.45%)
ITC 225.10 (-5.60%)
JSW Steel 667.45 (-2.55%)
Kotak Mah. Bank 2098.50 (-4.10%)
Larsen & Toubro 1814.25 (1.66%)
M & M 883.85 (-0.33%)
Maruti Suzuki 7369.70 (0.18%)
Nestle India 18991.40 (-0.07%)
NTPC 137.35 (-2.80%)
O N G C 150.20 (-4.88%)
Power Grid Corpn 185.90 (-2.29%)
Reliance Industr 2598.60 (-1.10%)
SBI Life Insuran 1167.10 (-1.59%)
Shree Cement 28193.05 (0.30%)
St Bk of India 501.35 (-3.43%)
Sun Pharma.Inds. 807.60 (-2.12%)
Tata Consumer 809.70 (-1.11%)
Tata Motors 481.05 (-3.38%)
Tata Steel 1299.60 (-2.00%)
TCS 3421.65 (-1.95%)
Tech Mahindra 1533.30 (-2.20%)
Titan Company 2375.15 (-3.45%)
UltraTech Cem. 7446.65 (1.26%)
UPL 729.90 (-1.56%)
Wipro 656.90 (-2.12%)

Closing Bell: Nifty closes on record high, Sensex surges by 452 points lead by Tata Group stocks.

Closing Bell: Nifty closes on record high, Sensex surges by 452 points lead by Tata Group stocks.
by 5paisa Research Team 13/10/2021

Indian market continues the bull run as Nifty ends at a closing high and Sensex up by 452 points. Tata Group shares rally.

Domestic Benchmark Indices Sensex and Nifty rose for the fifth consecutive trading session and closed at record high levels on Wednesday, October 13, 2021. Strong buying was seen in metal, IT and auto stocks, while some selling pressure was observed in realty stocks. In the broader markets, BSE midcap and smallcap indices jumped by 1.56% and 0.59%, respectively.

At the closing bell on Wednesday, the Sensex was up 452.74 points or 0.75% at 60,737.05, and the Nifty gained 169.80 points or 0.94% at 18,161.80. Around 1602 shares have advanced, while 1504 shares declined, and 118 shares remain unchanged.

Top gainers of the day were, Tata Motors, M&M, Tata Consumer Products, Power Grid Corp and ITC. Maruti Suzuki, ONGC, Coal India and SBI Life Insurance were among the losers.

On sectoral front, the auto index added 3.5%, while energy, infra, IT, metal, power and capital goods were up by 1%.

Tata Motors was up by almost 22% to a 52-week high of Rs 523.85 on the announcement that its electric vehicle entity will get funding from TPG Group to the tune of Rs 7,500 crore.

Tata Power shares powered ahead to a lifetime high of Rs 232.40 as the Tata Group's power utility is in a partnership with Tata Motors to develop electric vehicle (EV) charging infrastructure. Tata Chemicals clocked a fresh 52-week high of Rs 1144.50.

Among other Tata group stocks, Nelco, Tata Coffee, Rallis India, Tata Communications, Tata Consumer Products, Titan Company, Tata Metaliks, Tata Steel and India Hotels have all rallied 3-5% on the bourses today.

According to market experts, the mood of the global market is muted by inflation fears and high bond yields ahead of the release of US inflation data. But, the Indian market is robust due to the upcoming festival season.

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Zee-Invesco tussle takes a new twist as Reliance enters the scene

by 5paisa Research Team 13/10/2021

The controversy surrounding Zee Entertainment Enterprises Ltd and minority investor Invesco has turned uglier, with the billionaire Mukesh Ambani-controlled Reliance Industries Ltd being dragged into the imbroglio. 

On Tuesday, Zee managing director and chief executive officer Punit Goenka said that Invesco was trying to oust him because he chose Sony India over a large Indian conglomerate for a merger with the broadcaster.

Goenka didn’t name the conglomerate. But Invesco, a US-based asset manager that is the biggest institutional shareholder in Zee Entertainment, claimed on Wednesday that the Indian company was Reliance, which owns media companies TV18 and Network18.

“We wish to make clear that the potential transaction proposed by Reliance (the ‘strategic group’ referenced but not disclosed in the October 12 communication by Zee) was negotiated by and between Reliance and Goenka and others associated with Zee’s promoter family,” Invesco said.

Invesco also said that, as ZEE’s single largest shareholder, its own role was to help facilitate that potential transaction “and nothing more”. Invesco added that it rejects all assertions made by Zee on Tuesday. 

“We specifically note that the implication that we as a shareholder would seek out a transaction for Zee that is dilutive to the long-term interests of ordinary shareholders, including ourselves, simply defies logic,” Invesco said.

Invesco, through its funds Invesco Developing Markets Fund and OFI China Global LLC, had previously called for a meeting of Zee shareholders to oust Goenka. After Zee refused to hold the meeting, the two shareholders approached the Bombay High Court and the National Company Law Tribunal. The cases are pending.

Previously, Zee founder and Goenka’s father, Subash Chandra, had questioned Invesco’s intentions behind seeking the removal of Goenka.

Zee-Sony deal contours

Last month, Zee had struck a deal with Sony India to merge the two companies. As part of the deal, Sony would get a majority stake in the combined company and would nominate a majority of the board of directors. However, Goenka would stay as MD and CEO for five years.

The merged entity will effectively own the biggest suite of entertainment content services in India, bypassing Disney India and Star India. It will also be bigger than Viacom 18, the joint venture of billionaire Mukesh Ambani’s Network 18 Group and US-based ViacomCBS.

Interestingly, Sony and Viacom18 were engaged in merger discussions but scrapped the talks last year as the Ambani-led group reportedly wanted a majority stake in the combined entity.

Stock market reaction

Meanwhile, the stock market reacted quite negatively to the latest comments and counter-comments, at least in so far as shares of the Reliance-owned media companies.

Shares of TV18 Broadcast Ltd took a tumble on Wednesday, going down by 5.7%. Shares of Network18 Media Investments Ltd slipped 5.5% after touching a one-year high earlier in the day. This, even as the parent company Reliance Industries Ltd was up more than 1.1% and the benchmark Nifty rose just under 1%. 

Shares of Zee Entertainment, too, rose on Wednesday and ended 3.6% higher at Rs 317.25 apiece.

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Wipro Q2 net declines but still beats street estimate; stock climbs 2%

by 5paisa Research Team 13/10/2021

Wipro Ltd, the third-largest software services firm in the country, saw its net profit decline 9.6% even as sequential revenue growth at 7.7% helped the company beat analyst estimates for the quarter ended September 30, 2021.

The company reported a net profit of Rs 2,930.6 crore for the July-September period. This was up nearly 19% compared with the year-ago period. However, higher costs shrunk the sequential earnings by nearly a tenth. Analysts had expected the company to pull in a net profit of under Rs 2,900 crore.

Wipro’s revenue rose 7.8% sequentially to Rs 19,670 billion ($2.7 billion), and reported a 30.1% rise compared to the same quarter last year. In the process, the company also beat street expectations on its revenues.

This added fresh fuel to the company’s stock, which rose 2% to close at Rs 672.55 a share in a strong Mumbai market on Wednesday.

Other key details:

1) IT services segment revenue was at $2.58 billion, an increase of 6.9% QoQ and 29.5% YoY.

2) Non-GAAP constant currency IT services revenue increased by 8.1% QoQ and 28.8% YoY.

3) IT services revenue was at the higher end of the $2.53-2.58 billion band projected in July.

4) Attrition shot up to 20.5% during the quarter on a trailing 12-month basis, from 15.5% as of June 30.

5) Wipro expects Q3 revenue from IT services in a range of $2.63-2.68 billion. This means a sequential growth of 2-4%.

Management commentary:

Thierry Delaporte, CEO and managing director of Wipro, said, “The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5% organic sequential growth for a second quarter in a row, resulting in a 28% YoY growth in the first half of this financial year.”

Delaporte also said that Wipro surpassed the $10-billion milestone of annualized revenue run rate.

Jatin Dalal, chief financial officer at Wipro, said the company sustained its operating margins in Q2 in a narrow band even after absorbing the full impact of its recent acquisitions and investing significantly in our business across sales, capabilities and talent.

“We completed a salary increase covering 80% of our colleagues, making it the second hike in this calendar year. We delivered a robust growth in EPS of 23.8% YoY,” Dalal added.

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Top 10 Index Funds.

Top 10 Index Funds.
by 5paisa Research Team 13/10/2021

Passively managed funds such as Index funds are gaining momentum. Read on to find the detail about index funds that track the frontline equity index, Nifty 50.

Investors who are not well versed with equity investment, however, want to benefit from the equity investment can opt for index funds. According to data from the Association of Mutual Funds in India (AMFI), Asset under management (AUM) surged almost three times during in last year. AUM at the end of September 2021 stood at Rs 33824 crore against Rs 12581 crore the same month last year. Although most of the investment comes in schemes that replicate indices such as Nifty 50 and S&P BSE Sensex, others are also gaining ground now. So you will find index funds imitating mid-cap and small-cap indices also.

Given this popularity, Navi AMC recently launched the cheapest Nifty 50 index fund that has an expense ratio of 6 basis points. Besides expense ratio what is also important before selecting an index fund is tracking error. Tracking error is the difference in actual performance between the fund and its corresponding benchmark. So even if the index fund has a very low expense ratio, and a higher tracking error, it may not solve the purpose of investing in index funds. Hence, it is important to look at both expense ratio and tracking error before committing your fund to an index fund.

Below table shows the index funds that track Nifty 50 and is sorted based on tracking error.

This is the table code -

Name  

Expense Ratio  

Tracking Error  

AUM in Cr  

NAV (Rs)  

SBI Nifty Index Fund  

0.17%  

0.10%  

1530  

160.28  

HDFC Index Fund-NIFTY 50 Plan  

0.20%  

0.10%  

4000  

167.79  

UTI Nifty Index Fund  

0.20%  

0.11%  

5216  

120.46  

DSP Nifty 50 Index Fund  

0.21%  

0.13%  

122  

16.3  

ICICI Prudential Nifty Index Fund  

0.17%  

0.14%  

2160  

181.37  

IDFC Nifty Fund  

0.16%  

0.15%  

357  

38.22  

L&T Nifty 50 Index Fund  

0.25%  

0.16%  

80  

20.28  

Aditya Birla Sun Life Index Fund  

0.34%  

0.18%  

257  

179.19  

LIC MF Index Fund – Nifty Plan  

0.49%  

0.18%  

50  

103.22  

Nippon India Index Fund – Nifty Plan  

0.20%  

0.20%  

420  

31.59  

Franklin India Index Fund – NSE Nifty Plan  

0.26%  

0.20%  

458  

146.78  

Tata Index Fund – Nifty Plan  

0.19%  

0.21%  

200  

116.68  

Motilal Oswal Nifty 50 Index Fund  

0.10%  

0.30%  

105  

14.91  

IDBI Nifty Index Fund  

0.16%  

0.67%  

220  

35.38  

Kotak Nifty 50 Index Fund  

0.20%  

0.67%  

91  

11.4  

The above table shows that though, Motilal Oswal Nifty 50 Index Fund has the lowest expense ratio, it has a higher tracking error. Hence, the best combination is the fund that has lower expense and tracking error.

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Chart Busters: Top trading set-ups to watch out for on Thursday.

Chart Busters: Top trading set-ups to watch out for on Thursday.
by 5paisa Research Team 14/10/2021

The benchmark index Nifty has marked a fresh all time high in Wednesday’s trading session. The Nifty Midcap 100 has outperformed the frontline indices as it has gained over 1.5%. The Nifty Smallcap 100 has marked the fresh all time high of 11626.60 and thereafter witnessed profit booking. The advance-decline ratio was in the favour of advancers.

Here are the top trading set-ups to watch out for Thursday.

Federal Bank: After registering the high of Rs 92.50, the stock has witnessed consolidation. During the consolidation, the stock has formed a symmetrical triangle pattern on the weekly chart. On Wednesday, the stock has given a symmetrical triangle pattern breakout on the weekly chart. Further, on breakout day the volume was expanded by nearly 4 times of 50-days average volume, which indicates important buying interest. The 50-days average volume was 1.42 crore while today the stock has registered a total volume of 5.41 crore. In addition, the stock has formed a sizeable bullish candle. Currently, the stock is trading above its short and long-term moving averages.

Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. On the daily chart, the 14-period RSI has surged above the 70 mark and it is in rising mode. The RSI has also surged above its prior swing high. The daily MACD stays bullish as it is trading above its MACD line and the signal line. The MACD histogram is suggesting a pickup in upside momentum. On the daily timeframe, ADX is below the 25 mark and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Going ahead, as per the measure rule of symmetrical triangle pattern, the first target is placed at Rs 105, followed by Rs 113 level. While on the downside, the 8-day EMA is likely to act as strong support for the stock.

Godfrey Phillips India: On September 29, 2021, the stock has given 79-weeks consolidation breakout along with strong volume. Thereafter the stock has gained over 23% in just four trading sessions. After this sharp upside, the stock has witnessed a minor throwback. During the same period, the volume activity was not significant. Hence, it should be viewed as a routine decline after a robust move. The throwback is halted near the 38.2% Fibonacci retracement level of its prior upward move and it coincides with the 8-day EMA level. The stock has formed a strong base near the support zone and today it has bounced sharply, which indicates that upmove has been resumed. On Wednesday, the stock has formed a sizeable bullish candle along with above 50-days average volume.

An interesting observation is witnessed on the daily RSI. In the recent throwback phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per RSI range shift rules. The daily stochastic has also taken support near the 20 mark and it has given positive crossover. The technical evidence indicates a strong upside in the next couple of trading sessions. The prior high of Rs 1368 will act as minor resistance for the stock. While on the downside, the zone of Rs 1270-1230 is likely to provide the cushion in case of any immediate decline.

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Opening Bell: Here’s what you need to know before the market opens on October 14, 2021.

Opening Bell.
by 5paisa Research Team 14/10/2021

Will the Indian market bulls showcase a six in six performance similar to what Yuvraj Singh had done against England in T20 World Cup?

On Wednesday, Indian benchmark indices continued their northward journey for the fifth straight day. The bulls’ fairy tale is likely to continue on D-Street for the sixth straight day as well on Thursday as SGX Nifty is indicating a cheerful opening. The SGX Nifty is trading up by 84 points or 0.46% at the 18,264 level. Meanwhile, commanding attention today would be the IT stocks. Their momentum was derailed after IT bellwether TCS failed to meet the street’s expectations. However, on Wednesday, IT stock reversed its falling trend and considering Infosys and Wipro ADR witnessed a buoyant close, the momentum is likely to reignite in the IT index.  

Cues from Asian markets: A mixed trend was seen in the Asian markets with Japan’s Nikkei gaining 0.99%, while China’s Shanghai Composite was seen trading down by 0.18%.

Overnight cues from US markets: Overnight at Wall Street, major indices closed in green. The tech-heavy Nasdaq jumped 0.73% and the S&P 500 index rose 0.31, while the Dow closed almost unchanged. Finally, it seems the cat is out of the bag as the latest Fed meeting minutes showed the central bank’s tapering could begin gradual tapering prices by mid-November. Meanwhile, on the economic data front, the consumer price index rose 5.4% YoY in September and it was up by 0.4% MoM basis. On the earning front, JP Morgan was in the limelight as the banking giant beat Wall Street’s expectations.   

Last session summary: We often hear this phrase that the sky is the limit, and the current situation on D-Street is quite apt to describe this phrase. The Indian benchmark indices continued their winning streak for the fifth straight day and there is no stopping to the bulls of D-Street. Benchmark indices ended at a fresh record high with the Nifty adding 0.94%, while Sensex rose by 0.75%. A divergent trend was seen in the broader markets with Nifty Midcap 100 gaining 1.54%, on other hand, Nifty Smallcap 100 closed with a modest loss. 

FII’s and DII’s activity on Wednesday: The DIIs continue to be the net sellers for the fourth straight day as they sold to the tune of Rs 431.72 crore, on other hand, FIIs were the net buyers for the first time during this week to the tune of Rs 937.31 crore.

Important events to watch out for: On the earning front, HCL Technologies will be in focus. Meanwhile, WPI Inflation for September would be released on Thursday.