Nifty50: 16,624 ▲ +128 (0.7%)
Sensex: 55,958 ▲ +403 (+0.7%)
Following a strong opening, the benchmark indices maintained an upward trajectory throughout the day. The market breadth was positive too, with 35 of the Nifty50 stocks closing in the green.
Among the Nifty sectoral indices, Metal (+2.9%) and Media (+1.9%) saw the strongest investor interest, while only the FMCG (-0.6%) and IT (-0.2%) indices witnessed weakness today.
| Top gainers | Today's change |
| Bajaj Finserv | ▲ 7.7% |
| Hindalco | ▲ 3.8% |
| Adani Ports | ▲ 3.7% |
| Top losers | Today's change |
| Nestle India | ▼ 1.4% |
| Britannia | ▼ 1.4% |
| Asian Paints | ▼ 1.0% |
Here are the top stories of the day.
Bajaj Finserv to foray into mutual funds
The NBFC has received an in-principle approval from the SEBI to sponsor a mutual fund. Shares of Bajaj Finserv saw strong buying interest after the announcement and closed nearly 8% higher today.
As per the filing, the company will set up an asset management company by itself or through a subsidiary, based on the SEBI’s regulations. The stock has gained about 16% so far in August.
Cadila bullish on ZyCoV-D sales
Zydus Cadila expects to generate ₹200-250 crore monthly from the sale of its ZyCoV-D vaccine from the October quarter. The company reportedly has the capacity to produce over 1 crore doses per month. It aims to hit full capacity by October 2021.
The management expects a 75:25 split between sales to the government and private hospitals. Its three-dose, needle-free vaccine recently received emergency use approval from the Drug Controller General of India. The stock has gained 2.4% since the announcement of the approval on Friday.
More IPOs make tepid debuts
The shares of Chemplast Sanmar and Aptus Value Housing Finance made mediocre openings on the stock markets. Chemplast opened on the NSE 1.6% higher than its issue price of ₹541 per share, but lost all its listing gains by the closing bell. Meanwhile, Aptus listed at 5.6% below its issue price of ₹353, but managed to close the day nearly flat.
Of the last eight debuts, five have delivered negative listing day gains. This could be due to factors such as uncertain market sentiments, geo-political tensions and rising new cases in western countries.
Closing bell
After yesterday’s bounce-back, the markets saw follow-up buying today. A follow-up action reforces the effectiveness of the previous one. Index heavy weights such as HDFC Bank and Reliance Industries pushed the index higher and the Bajaj twins provided support. The midcap and smallcap indices, too, rose and indicated broad-based buying. While everything seems back to normal, a conservative trader might wait and watch till the previous index tops are breached and if markets sustains above it. Meanwhile, gold is gaining momentum as traders believe that the US Fed could delay the reduction (tapering) of the economic support, in the wake of rising cases.
Good to know
What is a rights issue?
A company announces a rights issue to raise additional funds from its existing shareholders. Through this route, a company usually sells additional shares to its shareholders at a discounted price. The funds raised through the rights issue are usually used by companies to expand their business or reduce debt. After a rights issue, share price may fall initially because the current earnings of the company are spread across more shares.
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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.