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Sensex, Nifty hit day's high; realty shares in demand

·3-min read

The key equity barometers bounced back and hit the day's high in morning trade. The Nifty marched towards the 14,800 mark. Realty stocks witnessed bargain hunting after a four-day losing streak.

At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 352.84 points or 0.71% to 50,097.16. The Nifty 50 index advanced 93.75 points or 0.64% to 14,769.45. The equity benchmarks saw value buying after declining over 4% in the past five sessions.

In the broader market, the S&P BSE Mid-Cap index gained 1.08% while the S&P BSE Small-Cap index added 0.73%.

The market breadth was strong. On the BSE, 1472 shares rose and 542 shares fell. A total of 91 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 111,709,399 with 2,473,742 deaths. India reported 147,306 active cases of COVID-19 infection and 156,385 deaths while 156,463 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Realty index was up 2.93% to 348.20, amid value buying. The index declined 5.2% in the past four sessions.

Prestige Estates (up 7.25%), The Phoenix Mills (up 4.11%), DLF (up 4.10%), Godrej Properties (up 2.61%), Indiabulls Real Estate (up 2.16%) and Brigade Enterprises (up 1.91%) advanced.

Stocks in Spotlight:

Reliance Industries added 1.19% to Rs 2031.30 after the conglomerate on Tuesday announced the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.

RIL said it has initiated the process of carving-out O2C business into an independent subsidiary. The company said the reorganization would enable a focused pursuit of opportunities across the O2C value chain, improved efficiencies through a self-sustaining capital structure. Reorganisation of O2C business facilitates participation by strategic investors and marquee sector focused investors, it added.

The company expects to complete the demerging process into an independent subsidiary by the second quarter of FY22. RIL said it has already received a nod from the Securities and Exchange Board of India (Sebi) and stock exchanges for the reorganisation. However, it is yet to get a clearance from equity shareholders and creditors, the income tax authority and National Company Law Tribunal (NCLT) benches in Mumbai and Ahmedabad.

RIL has acknowledged that there are ongoing talks with Aramco for a deal. RIL has also extended an interest-bearing loan of $25 billion to the O2C business. The O2C business will pay floating rate interest linked to one-year SBI MCLR rate. It is a long-dated loan with flexibility to structure repayments.

Meanwhile, Bharat Forge rose 1.56% to Rs 597.40 after The engineering & technology conglomerate and Paramount Group, a global aerospace and technology company, announced a cooperation that will see them join the technologies, capabilities and expertise of both groups in order to manufacture armoured vehicles in India.

IRB Infrastructure Developers advanced 1.80% to Rs 107.55. The highway construction company's board approved the allotment of unlisted, unrated, secured, redeemable, nonconvertible debentures aggregating to Rs 2,184.55 crore on a private placement basis to India Toll Roads for a tenure of 7 years at a coupon rate of 9.927% per annum payable semi-annually.