US markets inching higher, Nifty opening with a big gap up. Will profit booking kick in?

Good Morning Everyone,

The Nifty closed higher yesterday after stronger global cues, and today too the market looks well-positioned for some more up move followed by some profit booking as the Nifty inches closer to its highs.

Global Markets: US markets rallied on Monday, and the Nasdaq reached an all-time closing high as sentiment was boosted by full FDA approval of a COVID-19 vaccine. The Dow Jones Industrial Average rose 215.63 points, or 0.61%, to 35,335.71, the S&P 500 gained 37.86 points, or 0.85%, to 4,479.53 and the Nasdaq Composite added 227.99 points, or 1.55%, to 14,942.65.

Shares in Asia-Pacific largely rose in Tuesday morning trade, after the tech-heavy Nasdaq Composite jumped to a record closing high. Hong Kong’s Hang Seng index surged 1.65 percent in morning trade. The Hang Seng Tech index gained 3.38 percent. Mainland Chinese stocks were higher as the Shanghai composite rose 0.65 percent. The Nikkei 225 in Japan gained 1.15 percent. South Korea’s Kospi jumped 1.55 percent. In Australia, the S&P/ASX 200 edged 0.29 percent higher. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.16 percent higher.

Indian Market:

Trends on the SGX Nifty indicate another big gap up opening today which might again see some profit booking at higher levels. But we should be happy if the day again ends higher than yesterday's close.

The government is looking to monetise 25 AAI-managed airports, including Varanasi, Chennai, Nagpur, and Bhubaneshwar, over the next four years, which could bring in investments worth Rs 20,782 crore. Further, divestment of the Airports Authority of India's (AAI) residual stake in four airports JVs has also been considered under the national monetisation pipeline (NMP) unveiled on Monday. This includes the private sector-operated airports in Mumbai (26 percent stake), Delhi (26 percent stake), Hyderabad (13 percent stake), and Bangalore (13 percent stake).

India plans to monetise $81 billion worth of state assets over the next four years under a program announced earlier in 2021/2022 budget to boost infrastructure spending and spur economic growth in Asia’s third-biggest economy.

The Indian government aims to hand already built assets such as gas pipelines, roads, railway stations, and warehousing facilities among others to the private sector to operate on a long-term lease, Amitabh Kant, chief executive of government think tank NITI Aayog, told a news conference on Monday.

National monetisation pipeline: Unveiling the Rs 6 lakh crore National Monetisation Pipeline (NMP), the union finance minister Nirmala Sitharaman on Monday said the government will not sell off any assets and there will be a mandatory hand-back. "The ownership of assets remains with the government. There will be a mandatory hand back. They (private sector partners) will have to give it back after a certain time," Sitharaman said.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,363.36 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,452.51 crore in the Indian equity market on August 23

Stock Specific News:

Listings | Aptus Value Housing Finance and Chemplast Sanmar will list their equity shares on exchanges today.

Maruti Suzuki | The Competition Commission of India (CCI) has imposed a penalty of Rs 200 crore on the company for restricting discounts offered by its dealers.

Eicher Motors | Siddhartha Lal has been reappointed as managing director of the company with effect from May 1, 2021.

Bharti Airtel | The Supreme Court today will hear a fresh plea by the company against payment of defunct telecom company Videocon Telecommunications Ltd’s adjusted gross revenue (AGR) dues.

Vedanta | The company has made a natural gas discovery in a block in Gujarat that it had won in the open acreage licensing policy (OALP) round.

Gujarat Gas | The company has increased prices by Rs 4 per scm in the industrial segment and Rs 2 per kg in the CNG segment.

Canara Bank | The bank has closed its QIP, garnering a total of Rs 2,500 crore equity capital in the issue.

JSW Steel | Rating agency ICRA has upgraded the company’s rating for Long Term Bank Facilities and NCDs to “[ICRA] AA”; Stable Outlook, from “[ICRA] AA-”; Positive Outlook and has reaffirmed the ratings for the Short Term Bank Facilities and Commercial Paper at “[ICRA] A1+”.

Indian Hotels Company | The company’s board has approved raising of up to Rs 3,000 crore through a rights issue.

Balrampur Chini Mills | The company has bought back 6.76 lakh shares from eligible shareholders for an amount of about Rs 24.10 crore at an average price of Rs 356.34 per share.

Punjab & Sind Bank | The bank has set off accumulated losses of over Rs 3,577 crore against the share premium account of the bank.

Sical Logistics | The fifth meeting of the committee of creditors has been scheduled for August 25 through video conferencing.

KPI Global | The company has successfully commissioned a new capacity of 5.44 MW (DC) in its existing solar power plant at Village-Sudi & Tancha, Ta-Amod, District- Bharuch.

NR Agarwal Industries | Production at Unit 2 of the company has been temporarily shut down due to the lack of market orders

Atul Auto | Credit rating agency CRISIL has assigned CRISIL A-/ Stable (downgraded from CRISIL A/Stable) to long-term bank facilities and CRISIL A2+ (downgraded from CRISIL Al) to short term bank facilities of the company.

Nandan Denim | Brickworks Ratings India has revised the outlook of the rating of long-term facilities of the company.

Sanghvi Movers | ICRA upgraded the long-term rating to ICRA A from ICRA A- and also upgraded the short-term rating to ICRA A1 from ICRA A2-.