RIL's gets yet another investor, HDFC's big gain, and more.

6th October 2020 Highlights: Markets climb 1.4%, RIL's gets yet another investor, HDFC's big gain, and more.

-6th October 2020-

Sensex 39,574.57 ▲ 1.54%

Nifty 11,662.40 ▲ 1.38%

The markets ended in the green-up by 1.4% today. Positive cues from global markets as well as good performance by stocks like HDFC and Tata Motors helped pull up the markets. The Nifty50 has risen 8% in the last seven trading sessions with banking and IT stocks driving this surge. Both the Nifty Bank and Nifty IT indices gained nearly 11% during the same period. Today, 37 of the Nifty50 stocks ended positive. Among the top gainers were Tata Motors (+7.7%), HDFC (+7.5%) and Adani Ports (+3.5%), whereas Britannia (-1.5%), Coal India (-1.3%) and Wipro (-1.2%) were top index losers.

Top Gainers (Nifty)

HDFC - Rs 1934.40 ▲ 8.36% 

Tata Motors - Rs 144.85 ▲ 8.18%

Adani Ports - Rs 362.90 ▲ 3.58%

IndusInd Bank - Rs 622.45 ▲ 3.44%

M&M - Rs 627.40 ▲ 3.36%

Top Losers (Nifty)

Britannia Industries - Rs 3765.85 ▼ 1.69%

Coal India - Rs 116.75 ▼ 1.39%

Tata Steel - Rs 377.40 ▼ 1.28%

Hindalco Industries - Rs 176.90 ▼ 1.20%

Wipro - Rs 330.05 ▼ 1.17%

Here are the top stories of the day.

Reliance Gets Rs 5512.5 Crore from ADIA

Reliance’s retail arm RRVL received funding from yet another investor - Rs 5512.5 crores from Abu Dhabi’s sovereign fund ADIA.

RRVL has so far raised a total of Rs 37,710 crore from various investors which includes names like Silver Lake, KKR, General Atlantic, Mubadala, GIC, and a few more.

Many of these investors had participated in the funding of Reliance’ Jio Platforms fundraise held a few months ago.

Reliance’s share price ended at Rs 2210.35 - down by 1.85%. The news of this investment came after the stock markets had already shut.

HDFC Twins Rise On Q2 Business Update

Both the HDFC Bank and HDFC rose today on their Q2 business update. The numbers below are comparisons between this year and the same period last year.

HDFC Q2 Update:

+Individual loan approvals rose 31%

+Total loan disbursals to individual borrowers rose 11%

+Loan applications received gained 12%

September 2020 saw the highest recoveries since the outbreak of the pandemic. HDFC assigned loans worth Rs 3,026 crore to HDFC Bank as compared with Rs 7,160 crore assigned in the corresponding period last year.

HDFC also said that their business is reverting to pre-lockdown levels.

Shares of HDFC rose 8.36% to Rs 1,934.4 per share.

HDFC Bank Q2 Update

+Advances up 16% to Rs 10.37 lakh crore

+Deposits up 20% to Rs 12.29 lakh crore

+CASA Ratio at 42% versus 39.3% and 40.1% as of June 30

Shares of the bank rose 2.67% to Rs 1,144.1 per share.

RBI To Announce Monetary Policy on October 9

The Reserve Bank of India will announce the monetary policy on October 9.

The Monetary Policy Committee (MPC) meeting is scheduled between October 7 and October 9.

RBI holds MPC meets to decide the interest rates of the economy.

In the last MPC meet, RBI left the repo rate unchanged at 4%.

Paint stocks glisten green after hitting record highs

What happens when the real estate sector makes a comeback and housing loans disbursements increase? Shares of paint companies shine and that’s exactly what we saw today. The top two players in the paint industry—Asian Paints (+3.1%) and Berger Paints (+2.4%)—hit new all-time highs. It seems like the market expects an improvement in revenue and margins in Q2. The upcoming festive season could also add to the cheer. Asian Paints will declare its Q2FY21 results on 22 Oct while the date for Berger Paints’ results is yet to be announced.

Tata Motors zooms on strong JLR sales

Shares of Tata Motors soared 7.7% on the back of a strong 53% quarter-on-quarter growth in Jaguar-Land Rover (JLR) sales in the quarter ending September 2020. The company recorded strong sales growth in the UK (232%), Europe (79%) and the US (21%). However, sales in these regions are yet to reach pre-COVID levels from a year ago. China, which used to be the largest market for JLR in FY18, saw volumes declined in the last two years. However, green shoots are visible with a 4% YoY increase in volumes from the first country to emerge out of lockdown. JLR retailers worldwide are now open and the company’s plants are ramping up production to meet increasing demand.

Closing bell

Market sentiments are positive for now and they reflect the industry’s optimism. The Services PMI is at a six-month high, while the Manufacturing PMI is at its highest in over eight years. As we enter the Q2 results season one could expect heightened stock-specific activity.

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🥇 Gold: Rs 50,892 ▲ 0.94% at 6 PM

🥈 Silver: Rs 62,050 ▲ 1.47% at 6 PM

🔀  USD-INR Rate: Rs 73.45/USD ▲ 0.22% 

Dow Jones: 28,148.64 ▲ 1.68% - Oct 5

Nasdaq: 11,332.49 ▲ 2.32% - Oct 5

HAPPY INVESTING!

SEE YOU TOMORROW.