Informist, Wednesday, Oct 13, 2021
By Joe Milton and Abhishek Saini
MUMBAI – Tata Motors drove the benchmark indices higher today as a massive investment of 75 bln rupees from TPG Capital in the company’s electric vehicle operations led to the biggest gain in 18 months for the company.
Tata Motors is the leader in the passenger electric vehicle segment with a market share of about 70% in India, and plans to launch 10 more electric vehicles over the next five years.
As the government targets 30% electrification of cars by 2030, Tata Motors aims to capture most of that opportunity with this investment, said Kim Eng Securities in its report.
The company’s ambitious plans made investors buoyant as they aggressively accumulated Tata Motors and Tata Motors DVR shares which ended with about 20% gains at 506.90 rupees and 237.45 rupees, respectively.
The positive sentiment also spilled over to the other Tata group companies as the shares of Tata Power, Tata Chemical, Tata Investment Corp, and Tinplate Co of India ended 4-15% higher.
Tata Motors’ management is upbeat about the electric vehicle business because it has developed a strong ecosystem for scaling up this business through group companies such as Tata Autocomp System for battery packs, Tata Chemicals for fuel cell manufacturing, and Tata Power for electric vehicle charging stations, said Kim Eng Securities.
The larger elective vehicle theme was at play as investors favoured companies taking the lead in electrification of their product portfolio. This led to shares of Ashok Leyland to end 5.3% higher as the company has been taking significant steps in the electric vehicle segment through its arm Switch Mobility.
On the back of this, shares of India’s largest carmaker Maruti Suzuki closed 2.8% lower as it lags behind in electric vehicle adoption.
“Auto companies need to keep their investment high on e-vehicles segment and have higher capex. Players like Maruti Suzuki are sitting on a good cash balance and could use that instead of taking the private equity route,” said an analyst covering the auto sector
Apart from automobile stocks, shares of Reliance Industries gained nearly 2% as the company strengthened its solar arm with collaboration with two more companies in the renewable energy space.
Shares of HDFC Bank gained over 1% and touched its all-time high of 1,648 rupees as investors expect the bank to report healthy loan growth and lower provisioning in the September quarter.
Strong buying in these index-heavy stocks, and a positive retail inflation reading for September pushed the Nifty 50 index to scale a record high of 18197.80 points, and finally close with 0.9% gains at 18161.75 points.
Similarly, the BSE Sensex closed with 0.8% gains at 60737.05 points, after touching its lifetime high of 60836.63 points.
Among sectors, aviation was handed a boost after the government allowed airlines to operate at full capacity from Oct 18. Shares of InterGlobe Aviation rose nearly 5% during the day’s trade but eventually succumbed to profit booking and closed 1% lower at 2,017.55 rupees. The other major airline SpiceJet ended 3% higher at 77.55 rupees.
Another sector that enjoyed positive investor sentiment was metals. Reports of the Chinese government intensifying curbs to reduce steel output helped the shares of Indian steel companies gain more. JSW Steel, Steel Authority of India, Tata Steel and Jindal Steel & Power ended 1-5% higher.
Investors today, broadly shifted their capital from small-caps to large-caps as small-cap indices in NSE ended mostly lower. However, strong buying continued in the mid-cap space as NSE mid-cap indices ended over 1% higher.
* Among Nifty 50 stocks, 34 rose, 15 fell and 1 was unchanged
* Among Sensex stocks, 22 rose and 8 fell
* On the NSE, 1,035 stocks rose, 952 fell and 78 were unchanged
* On the BSE, 1,761 stocks rose, 1,577 fell and 138 were unchanged
* Nifty IT: Up 1.19%; Nifty Bank: Up 0.3%; Nifty Auto: Up 3.43%
BSE National Stock Exchange
Sensex: 60737.05, up 452.74 pts (0.75%) Nifty 50: 18161.75, up 169.80 pts (0.94%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 60836.63 (Oct 13) : Lifetime High: 18197.80 (Oct 13)
Record Close High: 60737.05 (Oct 13) : Record Close High: 18161.75 (Oct 13)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 60737.05 (Oct 13) : 2021 Closing High: 18161.75 (Oct 13)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 60836.63 (Oct 13) : 2021 High (intraday): 18197.80 (Oct 13)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
Edited by Michael Correya
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