Nifty50: 17,076 ▼ -55 (-0.3%)
Sensex: 57,338 ▼ -214 (-0.3%)
Following the strong rallies in the last two sessions, the markets took a breather and closed in the red today. The market breadth was slightly negative too, with 29 of the Nifty50 stocks declining today.
Top gainers among the Nifty sectoral indices included Realty (+5.5%) and PSU Bank (+0.8%), while Metal (-1.7%) and IT (-1.3%) were the top losers today.
| Top gainers | Today's change |
| Asian Paint | ▲ 3.1% |
| Tata Motors | ▲ 2.5% |
| SBI Life | ▲ 1.8% |
| Top losers | Today's change |
| M&M | ▼ 2.9% |
| Cipla | ▼ 2.7% |
| Tata Steel | ▼ 2.7% |
Here are the top stories of the day.
BHEL receives largest-ever order
The state-owned engineering company has received an order worth ₹10,800 crore from Nuclear Power Corporation of India Limited (NPCIL). This is BHEL’s largest order so far.
As part of the Engineering, Procurement and Construction contract, the company will supply six turbine units of 700 MWe each. These units will be used at NPCIL’s Gorakhpur (Haryana) and Kaiga (Karnataka) facilities. The stock gained 4.3% intraday before closing 3.9% higher. The rise in the stock price was supported by above average volumes.
NCC bags state government deal
Hyderabad-based NCC Limited has won a construction order worth ₹877 crore from a state government agency. However, despite the positive news, the stock witnessed weakness today.
NCC reported an order book worth ₹39,087 crore as of Q1FY22, and received orders worth ₹1,679 crore earlier in July. The stock has declined about 10% in August, but is up 36% so far in 2021.
CV sales see uptick in August
Compared to other automobile categories, sales of commercial vehicles (CV) rose sharply in August. Market leader Tata Motors’ CV sales increased 66% year-on-year. The growth was driven by higher domestic sales of both goods vehicles and exports. The bus segment continued to lag as schools in most pockets are yet closed.
Similarly, Ashok Leyland reported a 48% YoY increase in sales for August. Medium and heavy trucks sales grew by 89% and led the overall growth. Shares of Tata Motors rose 2.5% today, while that of Ashok Leyand ended 0.3% lower.
Closing bell
The markets witnessed some profit booking today, which is a normal reaction after the strong rise witnessed earlier this week. Meanwhile the Goods and Service Tax (GST) collection for August ’21 stood at ₹1.12 lakh crore. According to market experts, a figure above ₹1 lakh crore is impressive and indicates that economic recovery post the second wave is well underway.
Meanwhile, markets are experiencing sector rotation and identifying the next best sector for the short term is the way to go.
Good to know
What is trading volume?
Volume refers to the total number of shares of a company traded over a specific time interval. Suppose if buyers buys 1,000 shares and sellers sell those 1,000 shares in a day, total volume for the day is considered as 1,000 shares (and not 2,000 shares). High trading volumes indicate that a security is being actively traded, or is more ‘liquid’. Further, traders use volume as an indicator in their analysis. For example, a rise in price coupled with rise in volumes indicates strength in the trend.
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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.