▲ Nifty: 11,247 (+0.22%) ▲ Sensex: 38,067 (+0.25%)
The Nifty is showing signs of indecision and there seems to be a stalemate between the bulls and the bears. Among the sectoral indices, the Nifty FMCG index gained 1.38% today, while the benchmark was largely flat. FMCG stocks such as Nestle (+1.9%), Britannia (+1.5%) and HUL (+1.5%) showed strength. Meanwhile, BPCL fell 9.0% as the government (further) extended the deadline for initial bids for its privatisation.
Here are the top stories for the day.
Logistics sector gets moving as lockdown eases
Stocks of major logistics companies have risen in September as economic activity in most parts of the country inches back to normal. Recently, Blue Dart announced a 9.6% hike in its average shipping price, effective 1 January 2021. One could expect other players to follow suit. Shares of Blue Dart, Gati, Snowman and TCI have gained nearly 45%, 18%, 13% and 10%, respectively, in September. The revival in the logistics sector could be an indication of a pick-up in the entire supply chain.
Welspun surges on new orders, improved order book
Welspun Corp hit the 5% upper circuit, a day after it announced that it has received orders totalling ₹1,400 crore. Its current order book stands at 755 kilometre-tonnes, valued at ₹6,300 crore, which is higher than the order book at the end of the last two quarters. The pipeline manufacturer, which supplies pipes to oil & gas and water companies, claims to have garnered new bids and orders as oil prices have recovered significantly from Q1FY21.
Vedanta delisting approved; dividend questions raised
Vedanta has received an in-principle approval from the NSE and BSE for its delisting. Vedanta Resources (VRL), which owns 50.1% of Vedanta, plans to buy out the remaining 49.9% shares held by the public. Amid this development, questions are being raised by corporate governance experts regarding the non-distribution of the ₹4,500 crore dividend that Vedanta received from Hindustan Zinc, in which it has a 65% stake. This is contrary to the company’s dividend distribution policy, which mentions that normal dividend received from Hindustan Zinc shall be entirely passed on to its shareholders. Today, shares of Vedanta and Hindustan Zinc were down 2.1% and 1.0%, respectively.
Closing bell
If the heated Trump-Biden debate is anything to go by, investor confidence is expected to remain shaky in October in the run-up to the elections. Asian and European indices are down currently, and the Dow Jones futures are in the red. Going by the recent trends in the Indian markets, investors seem to be seeking safety in the defensive sectors such as pharma and FMCG.