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Jubilation continues on Dalal Street
Aug-04-2021

Buoyed by firm global cues, Indian equity benchmarks continue to trade jubilantly in noon deals with frontline gauges trading above 16250 (Nifty) and 54,300 (Sensex) levels. Sentiment improved because the virus seems to be under control in most states. Additional support also came with ICRA’s statement that IT services companies are expected to see growth in revenue, driven by robust demand for digital technologies resulting in higher awards of contracts. Traders seem to have ignored report that India's services sector remained in contraction territory for the third straight month in July, as business activity, new orders and employment declined further largely due to the COVID-19 pandemic and local restrictions. On the global front, Asian markets were trading mostly higher as traders shrugged off concerns about the rapid spread of the delta variant of the coronavirus amid continued optimism about the economic outlook.

Back home, 4 IPO’s namely -- Windlas Biotech, Devyani International, Krisnaa Diagnostics, and Exxaro Tiles opened for subscription from today i.e August 04, 2021 and will be open till August 06, 2021. The total IPO size of all the 4 IPOs is around Rs 3,613 crore, in which Devyani International is the biggest IPO with an IPO size of Rs 1,838 crore and Exxaro Tiles is the smallest with an IPO size of Rs 161 crore.

The BSE Sensex is currently trading at 54358.18, up by 534.82 points or 0.99% after trading in a range of 54034.31 and 54440.80. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.46%, while Small cap index was down by 0.55%.

The top gaining sectoral indices on the BSE were Bankex up by 2.20%, Metal up by 0.49%, Energy up by 0.21% and Power was up by 0.20%, while Realty down by 1.39%, Telecom down by 1.01%, FMCG down by 0.77%, Consumer Durables down by 0.72% and TECK down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 4.55%, Kotak Mahindra Bank up by 3.25%, ICICI Bank up by 3.24%, HDFC Bank up by 2.46% and Axis Bank was up by 1.94%. On the flip side, Sun Pharma down by 1.62%, Titan Company down by 0.99%, Nestle down by 0.93%, Larsen & Toubro down by 0.74% and Hindustan Unilever was down by 0.71% were the top losers.

Meanwhile, Automotive Component Manufacturers Association of India (ACMA) has said that the auto component industry is cautiously optimistic about growth prospects in the current fiscal (FY22) with the economy progressively returning to normal and as vehicular demand picks up. It noted that the challenges on the front of availability of semiconductors, escalating prices as also the availability of raw materials, challenges in logistics -- including non-availability and high prices of containers, among others, continue to hinder a smooth recovery.

ACMA said the industry, which saw its turnover declined by 3 percent in the last fiscal, also remains cautious regarding a third wave of the COVID-19, which could again put pressure on the performance. It also said the industry is looking at sustained growth in order to initiate investments, which have been on hold for the last few years, owing to various challenges.

It further said the industry lost investment opportunities of around $1 billion, which used to be the overall Capex around 2018-19 when the industry was witnessing growth. With the second wave, growth in the first quarter of the current fiscal is expected to be muted and that the industry is focusing a lot on localization and various cost reduction measures to remain afloat. In FY21, the auto component industry reported a turnover of Rs 3.40 lakh crore, registering a de-growth of 3 per cent over FY20.

The CNX Nifty is currently trading at 16263.35, up by 132.60 points or 0.82% after trading in a range of 16176.15 and 16290.20. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were HDFC up by 4.63%, Kotak Mahindra Bank up by 3.30%, ICICI Bank up by 3.23%, HDFC Bank up by 2.57% and Axis Bank up by 1.92%. On the flip side, Sun Pharma Inds. down by 1.64%, Grasim Industries down by 1.63%, Tata Consumer Produc down by 1.11%, Tata Motors down by 1.09% and Titan Co down by 1.08% were the top losers.

Asian markets were trading mostly higher; Shanghai Composite gained 29.04 points or 0.84% to 3,477.03, Hang Seng increased 332.43 points or 1.27% to 26,527.25, Straits Times advanced 35.35 points or 1.12% to 3,184.60, Taiwan Weighted strengthened 70.13 points or 0.4% to 17,623.89, KOSPI rose 43.24 points or 1.34% to 3,280.38 and Jakarta Composite was up by 27.51 points or 0.45% to 6,158.08. On the flip side; Nikkei 225 was down by 57.75 points or 0.21% to 27,584.08.
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