A weak trade persisted over the Dalal Street in early afternoon deals, with investors remaining cautious ahead of derivatives expiry. Easing crude oil prices were providing some support, while weakness in select heavyweight stocks, particularly HDFC Bank and IT counters, were weighing on the indices.
Both indices, Sensex and Nifty, remained sluggish during early noon deals, as investors were avoiding aggressive positions. However, down side remained capped amid expectations of progress around the Strait of Hormuz. Besides, highlighting India’s emergence as the world’s third-largest startup ecosystem, Union Minister of Commerce and Industry, Piyush Goyal has said that nearly 250,000 startups have been established over the past decade. Minister highlighted this growth at the India-Japan Startup Roundtable held in Tokyo.
On the global front, Asian markets were trading mixed, after China's industrial profits increased at a slower pace in July but the overall increase remained strong through July. The National Bureau of Statistics reportedly said that industrial profits logged an annual growth of 11.2 percent in July, the slowest growth seen so far this year.
The BSE Sensex is currently trading at 77234.30, down by 238.64 points or 0.31% after trading in a range of 77175.50 and 77694.97. There were 10 stocks advancing against 20 stocks declining on the index.
The top gaining sectoral indices on the BSE were Telecom up by 0.69%, Consumer Durables up by 0.53%, Capital Goods up by 0.49%, Healthcare up by 0.31% and Industrials up by 0.19%, while FMCG down by 0.65%, Metal down by 0.53%, Basic Materials down by 0.49%, PSU down by 0.48% and IT down by 0.47% were the top losing indices on BSE.
The top gainers on the Sensex were Kotak Mahindra Bank up by 2.15%, ICICI Bank up by 0.94%, Tech Mahindra up by 0.89%, Bharat Electronics up by 0.71% and Sun Pharma up by 0.55%. On the flip side, HDFC Bank down by 1.94%, NTPC down by 1.58%, HCL Technologies down by 1.13%, Mahindra & Mahindra down by 1.03% and Infosys down by 0.99% were the top losers.
Meanwhile, the rating agency Crisil has said that the overall acquisitions by India Inc have doubled since FY17. It also highlighted variety of reasons behind corporates opting for acquisition including accelerating growth, expanding market access and acquiring capabilities. Crisil’s analysis spans 600 deals of over Rs 500 crore each across 20 sectors. It excludes transactions in the financial services and infrastructure sectors and also inbound deals and ones led by private equity funds.
It highlighted that sectors like pharma and healthcare, enterprise technology, artificial intelligence and consumer businesses are using acquisitions to bridge technology, talent and intellectual-property gaps. In contrast, sectors such as cement and metals are using acquisitions to consolidate and reduce build times from four to six years to one to three years. Meanwhile, Crisil has assessed 100 large debt-funded deals from an outcome perspective and found out that two in three deals broadly yielded desired outcomes. It also noted that integration challenges are among the top issues afflicting deals, while other issues include regulatory delays and cross-border execution issues.
It noted that a sound strategic rationale alone is not sufficient to ensure M&A (mergers and acquisitions) success. It emphasized that value creation depends on disciplined integration, timely synergy capture and prudent leverage management. It added that companies that executed integrations effectively were better positioned not only to realise the benefits of acquisitions but also to manage and contain credit risk. It also noted that acquisitions have largely translated into stable or positive credit outcomes, with around three-fourths of ratings reaffirmed or upgraded following acquisitions. It added that around 60% of acquirers deleveraged on or ahead of plan within two years.
The CNX Nifty is currently trading at 24159.70, down by 48.05 points or 0.20% after trading in a range of 24133.75 and 24297.45. There were 21 stocks advancing against 29 stocks declining on the index.
The top gainers on Nifty were Kotak Mahindra Bank up by 1.86%, Adani Enterprises up by 1.29%, Tech Mahindra up by 1.27%, Tata Motors Passenger up by 1.26% and Adani Ports & SEZ up by 1.22%. On the flip side, HDFC Bank down by 2.01%, Hindalco Industries down by 1.64%, Shriram Finance down by 1.44%, NTPC down by 1.14% and Mahindra & Mahindra down by 1.00% were the top losers.
Asian markets were trading mixed; Jakarta Composite gained 84.92 points or 1.33% to 6,490.61, KOSPI increased 104.16 points or 1.51% to 6,912.37, Taiwan Weighted added 142.6 points or 0.31% to 45,975.22 and Shanghai Composite strengthened 44.05 points or 1.13% to 3,956.57, while Hang Seng declined 116.97 points or 0.46% to 25,536.00, Nikkei 225 slipped 132.16 points or 0.2% to 66,130.00 and Straits Times fell 37.15 points or 0.65% to 5,684.44.
