Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

Sensex Touches a Historic Mark of 60,000 Points

Sensex Touches a Historic Mark of 60,000 Points
by 5paisa Research Team 24/09/2021

The Sensex scaled the psychological 60,000 mark on Friday 24th September. After the stupendous 958 points rally in the Sensex on Thursday, the general expectation was that the Sensex would cool down on Friday. But a mix of heavy buying and short covering has taken Sensex beyond the 60,000 levels. Some numbers are actually amazing.

Since the lows of March 2020, at the peak of the pandemic, the Sensex has rallied by 134%. If you just look at the 9 months of 2021, the Sensex returns stand at an unbelievable 26.17%. But the biggest surprise is that the last rally of 5,000 points from the level of 55,000 to 60,000 on the Sensex, happened in 28 trading sessions flat.

There have been 3 critical factors that drove the rally in the Sensex.

A) Few people expected that the pandemic impact would be so severe on India in 2020. But, virtually nobody expected that the recovery from lower levels would be so stupendous. IIP is back to pre-COVID levels and GDP is also almost at pre-COVID levels.

Above all, the aggressive vaccination drive has inoculated over 85 crore Indians and promises to complete the full process for adults by December. That is absolutely possible at the current rate of 1.50 crore vaccines per day.

B) If economy is recovering, Indian corporates have become leaner and smarter. Cost cuts, debt reduction and inventory tweaks have been the big themes of the last 1 year.

Debt equity ratio is the lowest in the last 20 years for Indian corporates. Despite the rise in inputs costs, most companies have managed through better rightsizing of administrative costs and inventories.

C) The big punch came from the FED, which has given a rather ambiguous statement. The markets have interpreted the statement as a signal that the Fed is unlikely to act in the immediate future.

After all, with the Evergrande crisis in China and the impending debt ceiling meeting in October, the markets are almost certain that the Fed would remain indecisive. That is what, perhaps, really gave wings to the Nifty and Sensex.

Also Read :- What the FED Meeting Outcome Mean for Global and Indian Markets?

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Subhash Chandra Takes Up a Good Deal on his Zee Stake

Subhash Chandra Takes Up a Good Deal on his Zee Stake
by 5paisa Research Team 24/09/2021

One week is a long time in the history of any business. We saw that live in the previous week as the erstwhile controlling promoters of Zee moved from a defensive position to a position of strength. Let us first rewind to Monday, 13th September.

That was the day, the stock of Zee saw a sudden rally. There were reports that two large institutional investors of Zee, viz. INVESCO and OFI China Fund wanted Punit Goenka, the son of Subhash Chandra, to resign from the position of MD and CEO. 

Their contention was that for the 3.44% holding in Zee Entertainment, the Subhash Chandra family was exercising inordinate clout. It was also confirmed that two directors; Ashok Kurien and Manish Chokhani had already resigned from the Zee Board.

If that looked like end-game for the Subhash Chandra family, that would have been a gross misjudgement. By 20th September, Zee Entertainment had announced a mega merger with Sony Pictures.

The idea was to combine the sports and general entertainment franchise of Sony Pictures with the strong regional content franchise of Zee. The term sheet also specified that Punit Goenka will continue as MD & CEO for 5 years.

Also Read :- What does the Zee merger with Sony mean?

If that looked like a symbolic victory for Subhash Chandra, more is on the way. The family stake was to get diluted from 3.44% to 2% due to the deal. However, Sony has topped up with an additional 2% stake to Subhash Chandra as part of the non-compete clause. 

This 2% will be given to Subhash Chandra out of the Sony Pictures stake. Effectively, Sony will end with just about 50.93% stake. In addition, Subhash Chandra also gets the option to increase this stake from 4% to 20% subject to terms and conditions. 

Sony has had it good too. While they are infusing $1.4 billion in cash into the new entity, they get access to the vast library and regional content stack of Zee. That is the perfect launching pad for its OTT initiatives and to take on the might of Disney Hotstar in India. In a way, it is good that the promoter does not lose control over his brainchild.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

BTST/STBT Trading Tips for Today: 24th September, 2021

BTST/STBT Trading Tips for Today
24/09/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide Buy Today Sell Tomorrow (BTST) and Sell Today Buy Tomorrow (STBT) ideas.

BTST/STBT Trading Ideas for Today

1. BTST : NIITLTD

- Current Market Price: Rs.380

- Stop Loss: Rs.374

- Target: Rs.395

 

2. STBT : SRTRANSFIN SEP FUT

- Current Market Price: Rs.1,353

- Stop Loss: Rs.1,366

- Target: Rs.1,325

 

3. STBT : INDIAMART SEP FUT

- Current Market Price: Rs.8,476

- Stop Loss: Rs.8,517

- Target: Rs.8,380

 

4. BTST : KAJARIACER

- Current Market Price: Rs.1,227

- Stop Loss: Rs.1,212

- Target: Rs.1,265

 

5. BTST : GHCL

- Current Market Price: Rs.421

- Stop Loss: Rs.416

- Target: Rs.434
 

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Casagrand to File DRHP for Rs.800 Crore IPO

Casagrand to file DRHP
by 5paisa Research Team 24/09/2021

With the NSE Realty Index at all time highs, there is a surge of interest in realty stocks. Chennai based Casagrand is the latest in the list of realty companies planning to file its draft red herring prospectus (DRHP) with SEBI for an initial public offer. The company plans to file the DRHP by early October but the actual issue may come only in the beginning of the next calendar year. The funds will be used to fuel its aggressive growth plans.

While the details of the IPO are yet to be firmed up, it is reported that the IPO size could be in the range of Rs.800-1,000 crore, which will include a fresh issue portion and also an OFS. Motilal Oswal and JM have been appointed lead managers for the issue. Casagrand had recently raised around Rs.1,200 crore from two reputed PE firms viz. Apollo Global and KKR.

While Chennai will be its core market, Casagrand plans to expand its Bengaluru franchise and also make a foray into Hyderabad. It plans to invest Rs. 1,500 crore in Hyderabad and Bengaluru. Going ahead, Bengaluru and Hyderabad are estimated to contribute 35% of revenues while Chennai will contribute 65%.

During the current year, the company plans to acquire land parcels with turnover potential of Rs.10,000 crore compared to Rs.6,000 crore last year. In terms of total sales revenues, Casagrand proposes to enhance its sales revenues from Rs.2,300 crore in FY21 to Rs.3,750 crore in FY22. It also hopes to gain from the revenge buying expected to emerge as the economy recovers from the lag effect of the pandemic.

While Casagrand is currently developing upmarket villas with an average ticket size of Rs.85 lakhs, it wants to largely focus on the affordable housing segment in the range of Rs.25 lakhs to Rs.45 lakhs. The broad plan is that by 2024, Casagrand will develop 25 million SFT of residential projects and 5 million SFT of office properties. In addition, it also plans to develop around 10 million SFT of warehouse logistics space.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in September 2021

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Stellar numbers by Accenture and what it means for Indian IT

Stellar numbers by Accenture
by 5paisa Research Team 24/09/2021

Accenture has a financial accounts reporting year-end in August and has just reported its fourth quarter and full year ended August 2021 i.e. for the Sep-20 to Aug-21 period. The company is predominantly into IT services and consulting.

The company is domiciled in Ireland, but being one of the largest IT services and consulting companies in the world, Accenture sets the tone for other major IT services companies. Nearly one-third of its global manpower is located in India.

For the fourth quarter ended August 2021, Accenture reported 24% growth in top line revenues on YoY basis at $13.40 billion. The company reported 11% growth in diluted EPS at $2.20 for the quarter.

The operating margins for Accenture in Q4 stood at 14.6%, an expansion of 30 bps on a YoY basis. Accenture reported operating cash flows of $2.4 billion and free cash flows (FCF) of $2.2 billion. During the quarter, the company also reported new bookings of $15 billion.

For the full year, Accenture reported revenues up 14% at $50.5 billion while diluted EPS was up 165 at $9.16 per share. For the full year, the new bookings stood at $59.8 billion while the operating margins expanded by 40 bps to 15.1% for the fiscal year ended Aug-21.

Accenture reported 29% growth in consulting revenues for the fourth quarter at $7.31 billion while the outsourcing revenues were up 19% at $6.11 billion. The profit growth in both the segments was largely driven by higher revenues and better operating metrics.

The global benchmarks for Indian IT service companies like TCS, Infosys, Wipro and HCL Tech have been names like Accenture and Cognizant. The solid results signify that corporate IT spending continues to be robust, albeit still strong in the digital arena. It gives optimism that the Indian IT sector can actually better its guidance for the full year.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Bharti Airtel Rights Issue to Open on 05th October

Bharti Airtel Rights Issue
by 5paisa Research Team 24/09/2021

Bharti airtel has just announced that its proposed Rs.21,000 crore rights issue will be open from 05-Oct to 21-Oct. The rights shares are being issued in the ratio of 1 right share for every 14 shared held i.e. in the ratio of 1:14. The record date for the rights eligibility determination has been fixed as 28-Sep. That means, to be eligible for the rights, investors must have purchased the shares latest by 24-Sep as the stock will go ex-rights from 27-Sep.

The rights shares price has been fixed at Rs.535 per share, which represents a 27.98% discount to the closing price of 24-Sep at Rs.742.90. Normally, companies tend to price the rights at a steep discount to incentivize the existing shareholders to apply for the rights issue. This is the second largest rights issue by an Indian company after the Rs.53,000 crore rights by Reliance Industries last year. In the Bharti rights, 25% is payable on application.

The rights entitlements (RE) will get credited to the demat accounts of eligible shareholders by 04-Oct so that the RE is available to the shareholders at the time of the rights opening. Investors have two choices. They can either use the REs to apply for the rights shares in the proportion eligible. Alternatively, they can just renounce the rights by selling the RE in the market as it will be traded. The RE is expected to list at a premium of 50-60%.

Check: Bharti Airtel Rights Issue - How to Apply for Rights Issue Online

While 25% of the subscription amount will be payable by the rights subscribers on application, the balance will have to be paid in two tranches, which will be intimated to the shareholders separately. Rights represent an expansion of capital base so it is EPS dilutive. Hence the shareholders must either exercise the rights or renounce the rights by selling the RE. Letting the rights expire results in loss for the shareholders.

The rights entitlements will be traded on the stock exchange with an RE suffix and will be permitted to trade between 05-Oct and 18-Oct, during which period, traders choose to exercise or renounce the RE.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order