▲Nifty: 11,355 (+0.19%) ▲Sensex: 38,417 (+0.16%)
It was a yo-yo session for the Indian markets today as the benchmark indices remained negative for most of the day. They sprung back into the green in the last hour of trade, supported by heavyweights Reliance Industries and ITC, which rose nearly 1.5% each in the last hour. The market breadth was fairly balanced as 27 stocks advanced out of the Nifty50 pack. Bharti Infratel continued its upward march (+5.7%), while both HUL and TCS gained nearly 1.6%.
Happiest Minds IPO fully subscribed in lacklustre market
The benchmark Nifty50 index dropped 2.69% last week and ended almost flat today. As the broader markets lose sheen, investors are turning their attention to IPOs. Happiest Minds Technologies, a digital IT services company, launched its IPO today. The ₹702 crore issue was fully subscribed on Day 1. Next in the pipeline is the ₹600 crore issue by Route Mobile, a cloud communication service provider. Its IPO opens for application on 9 September. Unless the markets see any major correction, one could expect more companies going public in the months ahead.
Vehicle scrappage policy expected by September end
The government is expected to finalize the vehicle scrappage policy as early as the end of September. The policy is expected to specify the age limit for vehicles and incentives for consumers to scrap old vehicles. Further, vehicle-recycling clusters are likely to be set up to boost the use of recycled materials and cut the cost of raw materials. One study suggests that it could open up a ₹43,000 crore opportunity for the auto industry. Policy details related to commercial vehicles (CVs) will be eagerly awaited since manufacturers in this segment are currently experiencing maximum pain. In August, sales volumes of major CV makers dropped by nearly 30% on a year-on-year basis. Auto stocks saw a mixed reaction today, as Tata Motors (+0.8%), TVS Motors (1.3%), and Maruti (+0.4%) gained, while M&M (-3.5%) and Hero Motors (-1.8%) declined.
Crude oil drops nearly 10% in a week as demand fades
Nymex crude oil prices hit their lowest since July afer Saudi Arabia reduced oil prices for its shipments to Asia and the U.S. The price cut comes amid plunging demand for oil, as airlines have been forced to cancel their flights due to reduced passenger demand. With the summer driving season in the U.S. ending today and weak sentiments toward global equities, selling pressure in crude oil was expected. Today, MCX crude oil futures were down 1.1%.
Closing bell
Vodafone Idea was among the most active counters today. While the company has rebranded itself as ‘Vi’, investors will watch out for an announcement on capital raising. The stock was up 2.9% today, after rising 19.3% last week. As Indian markets open on Tuesday, they are expected to take cues from Asian markets as the U.S. markets will remain closed on Monday on account of the Labour Day holiday.
Download the Upstox App Today