Nifty50: 17,323 ▲ +89 (+0.5%)
Sensex: 58,129 ▲ +277 (+0.4%)
Except for some weakness in the first half, the benchmark indices remained positive throughout, and closed the week on a new lifetime high. Market breadth was positive too, with 32 of the Nifty50 stocks posting gains today.
Among the Nifty sectoral indices, Media (+1.4%) and Metal (+1.1%) rose the most, while Financial Services (-0.2%) and Bank (-0.1%) stocks were the weakest.
| Top gainers | Today's change |
| Reliance Industries | ▲ 4.1% |
| ONGC | ▲ 4.0% |
| Coal India | ▲ 3.5% |
| Top losers | Today's change |
| HDFC Life | ▼ 3.2% |
| Cipla | ▼ 1.4% |
| Bharti Airtel | ▼ 1.3% |
Here are the top stories of the day.
Exide Life Insurance acquired by HDFC Life
Shares of battery maker Exide Industries surged 15% intraday as it announced sale of Exide Life Insurance, its wholly owned subsidiary to HDFC Life Insurance. HDFC Life will make an acquisition for ₹6,687 crore. Meanwhile, Exide Industries’ total investment in the insurance company was about ₹1,680 crore.
HDFC Life states that the acquisition will help it scale its agency business. However, its stock was down 3.2%. Shares of Exide Industries closed 5.7% higher today.
Zen Technologies soars on IAF order
Shares of the defense technology company remained locked at their 10% circuit after the company received a ₹155 crore order from the Indian Air Force. The Hyderabad-based company will supply the IAF with counter unmanned aircraft systems in the span of 12 months.
Including the latest deal, the company has an orderbook of nearly ₹403 crore, over 7 times its FY21 revenues. The stock has risen nearly 60% over the last three trading sessions. It closed at its lifetime high of ₹153.8 today.
Govt asset monetisation to start with GAIL
As per reports, the government’s recently announced asset monetisation plan will commence with the leasing of a 2,229 km gas pipeline network, belonging to GAIL. Shares of the state-owned gas distributor closed 1.5% higher today.
As per the National Monetisation Pipeline, the government plans to lease state-owned assets between FY22 and FY25 to raise a total of ₹6 lakh crore. The pipelines owned by GAIL witnessed the strongest demand from private investors. The investments will be pooled into an infrastructure investment trust (InvIT), an investment instrument. Investors can invest in InvIT and earn a portion of the revenues as returns.
Closing bell
It was a unique week wherein all the sectoral indices ended positively, on a weekly basis. The news has been positive from all corners. The GDP rose, PMI numbers showed expansion in both manufacturing and service sectors and finally, international indices too showed bullish trends. Further, the number of new cases also remained below 50,000 per day over July and August. The last two IPOs too have shown strong subscription rates and indicate regained interest in public issues. Going by this, it is natural to expect more companies to line-up with public issues in this month.
Good to know
What is an InvIT?
An Infrastructure Investment Trust (InvITs) is an investment instrument similar to a mutual fund. Such a scheme enables direct investment of money from private and institutional investors in infrastructure projects to earn a portion of the income as return. A sponsor—the government, in the case of the National Monetisation Plan— sets up the InvIT, which in turn invests into the eligible infrastructure projects.
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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.