Reliance’s big green drive

Nifty50: 17,945 ▲+50  (+0.2%)
Sensex: 60,135 ▲+76 (+0.1%)

Despite a gap-down opening, the markets moved upwards and closed in the green today. The market breadth was positive with 34 stocks posting gains. 

All Nifty sectoral indices made gains except IT (-3.3%). Auto (+2.6%) and Realty (+1.7%) were the top gainers.

For more updates on F&O, click here.

Here are the top stories of the day.

Reliance Industries on acquisition spree

Reliance New Energy Solar (RNESL), a wholly-owned subsidiary of Reliance Industries, will be buying a 40% stake in Sterling & Wilson Solar (SWSL) in a multi-stage-transaction for a reported amount of  ₹2,850 crore. With presence in 24 countries, SWSL provides a comprehensive range of solar energy turnkey solutions.

The announcement came within hours of Reliance’s 100% stake acquisition in Norway-based REC solar holdings. As per its management, the latest acquisitions are aimed at achieving the goal of 100 GW clean and green energy before the end of this decade. Meanwhile, shares of Reliance Industries were down (-0.7%) today and that of Sterling and Wilson Solar surged 6%.      

Aditya Birla AMC makes a muted debut 

Shares of the asset management company (AMC) made a subdued debut, listing at a premium of 0.4% against the issue price of ₹712. The company’s IPO was oversubscribed by 5.2 times by the end of the closing day on October 1. 

It is a joint venture between Aditya Birla Capital and Sun Life AMC Investment Inc and the largest non-bank affiliated AMC. Meanwhile, shares of the company closed around 2% lower in comparison to the issue price.

GOCL soars on new order

The shares of the Hyderabad-based company were locked in a 20% upper circuit today as it announced that it had received an order worth ₹592 crore from Coal India. GOCL’s wholly owned subsidiary IDL Explosives will supply bulk explosives to India’s largest coal mining company for two years. 

As of September 2021, it’s order book stood at ₹437 crore, which is nearly 80% of its FY21 revenue. This order comes at a time when Coal India is ramping up its production to meet the shortfall faced by the power sector.     

Closing bell

The weakness in IT stocks was completely overshadowed by the rise in other sectors. This kept the Nifty50 afloat and helped it close higher. Meanwhile, factors such as rising US treasury bond yields, US dollar and the India VIX could act as headwinds for the markets. Tomorrow, the retail inflation numbers for September will be announced and the street expects it to further cool off to 4.5% from 5.3% in August. Experts view inflation remaining under control as a positive sign for the markets, in general. 

Good to know

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