Vedanta gets nod to delist, Walmart may invest $25 b in Tata’s super app, & more..

29th Sept 2020 Highlights: Markets end flat, Vedanta gets nod to delist, Walmart may invest $25 b in Tata’s super app, & more...

-29th Sept 2020-

Sensex 37,973.22 ▼ 0.02%

Nifty 11,222.40 ▼ 0.05%

The markets ended more or less flat today after a swing from as high as 0.7% to as low as 0.3%. Although the markets ended flat today, the market breadth was negative as 32 of the Nifty50 stocks declined. The large-cap stocks, with high index weightage—TCS (+2.4%), HDFC (+1.8%) and Reliance Industries (+1.1%)—were the ones that supported the index. Meanwhile, Bharti Infratel (-4.0%), ONGC (-3.4%) and IndusInd Bank (-3.4) were the top losers in the Nifty50.

Top Gainers (Nifty)

Hindalco Ind - Rs 176.40 ▲ 5.19% 

UltraTechCement - Rs 4049.25 ▲ 3.08%

HeroMoto Crop - Rs 3174.95 ▲ 2.79%

TCS - Rs 2488.40 ▲ 2.56%

JSW Steel - Rs 284.10 ▲ 2.56%

Top Losers (Nifty)

Bharti Infratel - Rs 178.75 ▼ 3.85%

ONGC - Rs 69.15 ▼ 3.82%

IndusInd Bank - Rs 536.25 ▼ 3.40%

UPL - Rs 493.10 ▼ 3.28%

Power Grid - Rs 163.30 ▼ 2.88%

Here are the top stories of the day.

IPO Day 1 Update: UTI AMC, Mazagon, Lithika Infra

Three companies opened their IPOs for bidding today. Here's the update at the end of day 1 of bidding:

Mazagon Dock Shipbuilders

The Rs 444-crore issue received bids for 6.3 crore shares as against the issue size of 3.05 crore shares. This means that the issue was subscribed for a little more than 2 times.

UTI AMC

The 2,159-crore IPO received bids for 73.02 lakh shares against issue size of 2.73 crore shares. This means that the issue received a 0.27 times subscription at the end of day 1 of bidding.

Likhita Infrastructure

The Rs 61.2-crore IPO received bids for 51.35 lakh shares against issue size of 51 lakh shares. This means the issue was subscribed for a little more than 1 time.

Vedanta Gets Approval to Delist

Vedanta has said that it has received an in-principle approval to delist from the exchanges (BSE and NSE). The company had received approval from shareholders to delist back in June.

VRL (Vedanta Resources) offered to buy out 49.9% of the public shareholding at Rs 87.5 per share.

At today’s closing, the shares of Vedanta were trading at Rs 139.90 per share.

3 Tax-Related Chores To Complete by Tomorrow

1) ITR filing for FY18-19

The last date to file income tax returns for the financial year ended March 31, 2019, is September 30.

The original deadline was March 31, 2020. Since it was for FY-19, these returns will be filed as 'belated ITR'.

2) Verification for old ITRs

Taxpayers who haven't filed their ITR-V for assessment years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20, can do so by September 30, 2020. In case a taxpayer does not comply with this deadline, it will be considered that he/she has not filed their ITR at all for the said years.

3) Capital gains exemption

To avoid paying tax on long-term capital gains (LTCG), taxpayers have to make specified investments. The income tax department had extended the last date for making such investments to September 30, 2020.

Hero Moto in the fast lane ahead of monthly volumes 

Shares of Hero Moto gained 2.8% today, indicating that investors are upbeat about monthly sales numbers, which will be announced in the first week of October. Among the major two-wheeler players in India, Hero Moto is the fastest to bounce back with domestic sales growth of 9% in August, after posting declines in June (-27%) and July (-1%) on a year-on-year basis. The company said that it is cautiously optimistic about demand in the year ahead. India’s leading two-wheeler maker is better placed in the current scenario given its higher rural exposure and dominance in the entry-level segment. Further, Hero Moto and Harley Davidson are said to be in talks to strike a strategic alliance. As part of the arrangement, Hero is likely to import and distribute Harley-Davidson bikes after the latter shut shop in India. Meanwhile, shares of Bajaj Auto (-2.2%) and TVS Motors (-0.14%) ended in the red today.  

Realty shares mixed despite rising home sales

The Indian residential property market seems to be crawling back towards normalcy. Housing sales in the top seven cities grew 34% in the quarter ending September as compared to the lockdown-hit April-June quarter. Apart from low-interest rates and attractive pricing offered by developers, demand from NRIs also helped boost demand. However, the real estate sector isn’t quite out of the woods yet. Compared to the July-September quarter last year, sales are down 61%. Shares of major real estate players showed mixed reactions today—Brigade Enterprises (+0.3%), Sun Teck (+0.1%) and DLF (-2.1%). That said, over the last three months, these stocks have risen about 19.7%, 43.0% and 4.6%, respectively. Nifty Realty index has risen 5.2% over the last three months.

Various Media Houses Say Tata-Walmart Deal Likely

Though there is no confirmation of the matter, various media houses claim that Walmart might invest around $25 billion (around Rs 1.8 lakh crore) in Tata’s new super app.

The super app will reportedly also bring under its umbrella all of Tata’s existing consumer brands like Croma, Trent, Tata Sky, Tata Cliq, and a few others.

This app is reportedly launching in December this year or January next year and will rival Reliance’s foray into the retail space.

The retail sector is all set to get hot this winter. The Tata group aims to launch its super app around December-January. The app is expected to put the group’s various consumer offerings together onto a single platform. Shares of Tata group companies fared positively today, as TCS (+2.4%), Titan (+2.6%), Trent (+2.9%) and Tata Chemicals (+0.8%) ended in the green. As per reports, US retail major Walmart is in discussions to invest $25 billion in the app. The retail sector is already heating up with the acquisition of Future Group’s businesses and the PE investments in Reliance Retail.

Closing bell

Rating agency ICRA has revised its FY21 GDP forecast for India from -9.5% to -11%, citing the rising Covid-19 cases. In the US, major stock indices rose in hopes of a fresh new stimulus. Such news, till it becomes a reality, could result in minor bounce-backs in an otherwise downward trending market. 

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🥇 Gold: Rs 50,316 ▲ 1.06% at 6 PM

🥈 Silver: Rs 61,250 ▲ 3.07% at 6 PM

🔀  USD-INR Rate: Rs 73.85/USD ▲ 0.11% 

Dow Jones: 27,584.06 ▲ 1.50% - Sept 28

Nasdaq: 11,117.53 ▲ 1.86% - Sept 28

HAPPY INVESTING!

See you tomorrow!