For the third consecutive day, benchmark indices touched new highs as a result of strong global cues and the recent reforms implemented in the telecom and auto sectors.
Ahead of Finance Minister Nirmala Sitharaman’s speech, shares of PSU Bank also gained.
The BSE Sensex rose 418 points (up 0.7%) at the closing bell.
Meanwhile, the NSE Nifty closed with a gain of 110 points (up 0.6%).
IndusInd Bank and ITC were the top gainers today.
On the other hand, Grasim Industries and Bharti Airtel were among the top losers today.
At the time of writing the news, SGX Nifty was trading at 17,608 with a gain of 72 points.
The BSE Midcap index closed up 0.4%, while the BSE Smallcap index closed on a flat note.
Sectoral indices closed on a mixed note, with the banking sector, energy sector and FMCG sector witnessing maximum buying.
On the other hand, selling pressure was witnessed in metal and IT stocks.
Shares of Coforge and Avenue Supermarts touched their respective 52-week highs today.
Asian stock markets today closed on a negative note.
The Hang Seng and Shanghai Composite ended the day down 1.5% and 1.3%, respectively. Nikkei closed down 0.6% in today’s trading session.
US stock futures are trading on a flat note today and Dow Futures is trading with a decline of 38 points.
Rupee is trading at 73.52 against US Dollar.
Gold prices for the latest contract on MCX are trading lower by 0.8% ₹46,529 per 10 grams.
Moving to stock-specific news, Tata Group shares were among the top Gulzar Stock Today.
A group led by Tata Group and SpiceJet Chairman Ajay Singh submitted financial proposals for Air India on Wednesday, the last day of bid submission.
Tata Sons offered through its 100% branch Tales Pvt Ltd, while Singh made financial bids in his individual capacity along with some investment funds.
In a tweet, the Department of Investment and Public Asset Management, without disclosing the names of the parties, said,
The financial bids for Air India were received by the Transaction Advisor. The process has now moved to the final stage.
Ernst & Young (EY) is the government’s transaction advisor on the disinvestment of Air India. The Center will soon decide the floor price for the airline.
The government expects to complete the sale of Air India this year, a major milestone in the country’s privatization programme. It has taken nearly 20 years to sell the cash-strapped airline.
But the winner must also meet security audit standards. Air India has more debt ₹430 billion, of which ₹232.9 billion will be kept on its books, while the rest will be transferred to Air India Asset Holdings, an entity incorporated for non-aviation assets.
On Tuesday, Tata Sons shareholders approved the fund raising program ₹400 billion through non-convertible debentures to finance acquisitions and invest in businesses.
Tata Sons – which operates Vistara and AirAsia India – is considered to be at the forefront of Air India according to reports. The company originally promoted Air India in 1932 but sold its interests to the government in 1953. Its financial bid indicates its commitment to the air transport business.
How it turns out remains to be seen.
Moving on to the news in the engineering sector…
BHEL commissions India’s largest floating solar plant
State-owned Bharat Heavy Electricals (BHEL) today announced commissioning of India’s largest floating solar photovoltaic plant in Andhra Pradesh.
BHEL said without disclosing the project cost that located at NTPC Simhadri in Andhra Pradesh, the 25 MW floating SPV project covers an area of 100 acres.
BHEL said its scope of work in the project includes Solar Project Design, Engineering, Procurement and Construction (EPC), executed by the company’s recently formed Solar Business Division.
The project will help in conserving water by saving valuable land resources and reducing evaporation.
It further said that this complex module array is designed to withstand gusts of up to 180 km/h for the first time in India.
Considering the coastal location of the project site, which leads to severe corrosion, all platform structures and other equipment have been made corrosion resistant.
The engineering firm is a leading EPC player in the solar industry in India with an overall portfolio of over 1.2 GW.
BHEL share price ended the day up 0.3% on the BSE.
Coming to the capital goods sector, here is an interesting data point…
If you had instead invested in the BSE Capital Goods Index in 2002, you would have earned a return of over 3,000% – 83 per cent CAGR (Compound Annual Growth Rate) over the next six years.
see full image
Here’s what Aditya Vora, Financial Writer, Equitymaster, wrote about the capital goods sector:
I am a firm supporter of the topic of economic revival in the stock market. I am bullish on capital goods and infrastructure stocks.
These areas have emerged stronger from a long down cycle. There is also a strong rally in economic indicators which is in favor of these stocks.
Indicators such as rising sales of construction equipment, record highway construction run rates, capacity expansion by private players in cement, metals and consumer durables Give We are confident of a strong capex cycle ahead.
could be the one near term The economic recovery has accelerated due to rising Covid cases and lockdown. However, I believe we are at a critical juncture with respect to the capex cycle.
The cycle has arrived.
One of the recommendations of the hidden treasure is a fundamentally strong business in the capital goods sector which is ‘essential’ for the revival of infrastructure.
If you are interested in becoming a Hidden Treasure subscriber, Here you can sign up.
This article is syndicated from equitymaster.com
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