The Indian stock markets posted a third straight weekly gain on global cues and witnessed a rally in index heavyweights. Here’s a quick look at the important events during the week and what the markets have in store for next week.
We’ve also introduced a sustainability section in our weekly report to keep you updated on everything related to electric vehicles, solar energy and any breakthrough in the sustainability space to identify companies that are doing good and those who are future-ready.
🚀 IRCTC breaches ₹3000 price mark; stock surges 32% in one month
The month of September has bought much cheer to the shareholders of the IRCTC! You may wonder why? Well, the stock price has seen a massive jump of 32% from the last month! Yes, you read that correctly. The Indian government-owned Indian Rail Catering and Tourism Corporation (IRCTC) saw a massive upswing in its stock price in the last 30 days, with its price breaching the ₹3,000 marks.
It hit an all-time high of ₹3,425 per share on Wednesday 8th September on the BSE before closing at ₹3,292. Similar to a passenger train, the stock has seen slow and fast progress with its trajectory in the equity market since its listing in 2019. Overall, IRCTC’s value has multiplied five times from ₹644 per share in 2019 to ₹3,200 Rs per share in 2021. Reasons behind its stellar growth IRCTC reported higher sales than usual of long-distance train tickets during the festive season, resulting in increased revenue& profitability. The company’s proposal to split shares into equity shares has additionally resulted in increased demand for this stock.
Are you holding IRCTC stock and not sure what to do? Our experts recommend booking up to 50% profits at these rates. New buyers must restrict their purchases to only 15% of their overall portfolio at current prices. Overall, ₹2700-2800 would be a fair price to buy this company’s shares.
💰 SEBI introduces T+1 settlement on an optional basis from January 2022
Come 1st January 2022, and you may no longer have to wait for two days to see your newly purchased stocks listed in your online or offline trading account. As per a new SEBI circular issued on Tuesday, 7th September 2021, the rolling settlement cycle for newly purchased stocks may reduce to T+1 day. (Trade+1) from the current T+2 days beginning January 2022 on an optional basis. The proposed T+1 settlement is not mandatory, and the exchanges can continue with T+@ if they wish to. However, stock exchanges can offer T+1 settlement on any stock, provided advance notice of 30 days is provided to SEBI. Furthermore, exchanges can revert to the T+2 cycle following an announcement 30 days prior; however, stock exchanges must follow a specific cycle for six months. This rule is applicable for all securities traded on the exchange. Overall, it is the third change
in the Indian trading cycle in the last 18 years, with the markets shifting to a T+2 settlement in 2003 from the earlier T+3 cycle. Retail investors will benefit from this change to a shorter cycle, who will get quicker access to cash and securities after trades are executed. It will also reduce the risks associated with fluctuations of stocks during the settlement cycle.
📈 Markets this week
After reaching record high’s the previous week, the Indian stock market remained largely flat, without significant ups and downs. Here’s a quick recap about the market activity between September 6th– 10th’2021
- Nifty and Sensex trends: Nifty closed at 17369.25 this week, up by 1.7%, while BSE Sensex closed at 58305.07, up by 1.7% as well.
- Will Reliance stock fall? Following Grasim (6.58%) and Zee Entertainment (5.99%), Reliance Industries emerged as the top gainer of the week, with its stock price making a weekly gain of 5.72% closing at 2425.6. However, the much-anticipated Jio- Phone Next smartphone’s delayed launch may cause a correction in the oil to telecom conglomerate’s share price on Monday.
- Fitch retains India’s sovereign rating at BBB-
- Unemployment data– The US unemployment figures fell to a new pandemic-era low at 310,000 as per the statistic released by the US labour department. These figures are the lowest since the beginning of the pandemic and signal a return towards pre-pandemic levels.
- Covid-19 in India: India’s COVID-19 vaccination coverage has surpassed the cumulative figure of 73 crore landmark milestone as per provisional reports till 11th Sept morning. Consequently, India’s recovery rate stands at 97.49%.
- Market outlook– The market seems to be in control of the bulls, inflation figures, oil market reports, and industrial production numbers will offer a vital clue of the market trajectory. Overall, the market in the week starting 13 September is likely to trade anywhere from being favourable to flat.
- Company to watch out – Ami Organics will list on the stock market on 14th September. We recommend investors book profit on listing day.
🏭 Industry News
- The Union Government announced a new PLI scheme for the textile sector; to boost India’s position in the global textile trade, with incentives over ₹10,683 crores in 5 years.
- Dr Reddy’s Laboratory resumes the distribution of the first dose of the Sputnik V to partner hospitals in the country; it had previously stopped the supply due to supply chain issues.
- Mahindra Holidays and Resorts India announces a bumper bonus issue in the ratio of 1:2 Equity shares, i.e., one bonus equity share of ₹10 per 2 shares of ₹10 with an ex-date of 14 September.
- TVS Motors expands its global network, partners with South Africa-based ETG logistics for distribution.
- ONGC Videsh looks to buy a stake in Russia’s Vostok Oil Project; plans a liquified gas project Artic- LNG 2 as well.
- CEAT Tyres initiates a major revamp exercise to modernize retail sales networks and to improve customer experience. The tyre company plans to refashion CEAT Shoppes with ten new stores in major cities and markets of India.
- NTPC plans to partner with NIIF and ONGC; the power company looks to buy green energy assets, including offshore wind projects.
- Mining giant NDMC announces a price cut in lump ore and fines of ₹1,000 per tonne. In a BSE filing, the company suggested the prices of lump ore and penalties have been fixed at ₹6,150 and 5160 per tonne, respectively.
- Top air conditioner Brands, Voltas, Blue Star, Dixon Tech, and Amber Enterprises plan to apply for the Union Government’s PLI scheme for air conditioner components. The scheme is likely to bring an investment of ₹3,000 crores.
- US Food and Drug department approves Zydus Cadila’s Brexpiprazole tablets for schizophrenia treatment.
- TCS inks a ten-year deal with London Transport; the I.T and consulting giant will develop an innovative mobility program, which will revolutionize London’s public and private transport network
- Technology Giant Infosys joins hands with The Economist Group to enable and accelerate mobility solutions via a B2B model.
🔌 EV Corner: Sustainability Focus
- Tata Steel begins using Electric Vehicles to transport finished steel products at its Jamshedpur plant.
- Tata Power partners with Macrotech developers to offer EV charging solutions at the latter’s projects in Mumbai Metropolitan Region and Pune.
- Greaves Cottons shares jump 5% on 9th September following its announcement that the company will foray into the multi-brand EV retail segment. The company will launch its first showroom in Bengaluru under its brand name AutoEVMart; the brand will offer a one-stop platform to purchase electric two and three-wheelers and accessories. Overall, the company’s share price clogged a 2.3% increment on the BSE.
🚀 IPO Corner
- Renowned Men’s ethnic wear brand Manyavar files for an IPO with SEBI via its parent company Vedant Fashions to raise funds.
- Udaan designates co-founder Vaibhav Gupta as CEO; the company plans an IPO in the next 18-24 months.
Upcoming IPO this week
|Company Name||Issue Price||Issue Size||Opening and Closing Dates|
|Sansera Engineering LTD||₹734-744||₹1,283-crore||14-16 Sept|