Benchmark indices ended higher; Sensex gains 403 points & Nifty ends above 16,600

Key equity indices ended near the day's high with robust gains on Tuesday, August 24, 2021, tracking positive Asian cues. The S&P BSE Sensex advanced 403.19 points or 0.73 per cent to 55,958.98. The Nifty 50 index added 128.15 points or 0.78 per cent to close at 16,624.60. The Nifty Bank gained 587.70 points or 1.67 per cent to settle at 35,712.10.

The broader markets outperformed the Sensex with S&P BSE MidCap closing with a gain of 1.52 per cent and S&P BSE SmallCap ends 1.69 per cent higher.

Buyers outpaced sellers. On the BSE, 2147 shares rose and 1028 shares fell. On the Nifty 50 index on the NSE, 35 shares rose and 15 shares fell. The top five stocks on Nifty were Bajaj Finserv (up 7.78 per cent), Hindalco (up 3.85 per cent), Adani Ports (up 3.79 per cent), Tata Steel (up 3.57 per cent) and Bajaj Finance (up 3.37 per cent). The top five losers were Nestle India (down 1.40 per cent), Britannia (down 1.40 per cent), Asian Paints (down 1.05 per cent), HDFC (down 1.03 per cent) and Infosys (down 0.99 per cent).

Shares of Aptus Value Housing Finance India debuted on the stock exchanges today at Rs 333 per share at the NSE as against an issue price of Rs 353 per share. It closed 5.71 per cent higher against the listing price at Rs 352 per share.

Shares of Chemplast Sanmar debuted on the stock exchanges at Rs 550 per share at the NSE as against an issue price of Rs 541 per share. It closed 2.55 per cent lower against the listing price at Rs 536 per share.

Penalty on Maruti Suzuki

Competition Commission of India (CCI) has imposed a penalty of Rs 200 crore upon Maruti Suzuki India Limited, MSIL for restricting discounts by dealers. The CCI passed the order against the company for indulging in anti-competitive conduct of Resale Price Maintenance in the passenger vehicle segment by implementing a discount control policy.

According to the Ministry of Corporate Affairs in a statement said that the CCI has found that MSIL had an agreement with its dealers whereby the dealers were restrained from offering discounts to the customers beyond those prescribed by this company.

MSIL had a 'Discount Control Policy' in place for its dealers whereby the dealers were discouraged from giving extra discounts and freebies to the consumers beyond what was permitted. If a dealer wanted to offer additional discounts, prior approval of MSIL was mandatory and any dealer found violating it, was threatened with the imposition of penalty.

The CCI found that such conduct of MSIL which resulted in an appreciable adverse effect on competition within India is in contravention of the provisions of the Competition Act, 2002.

COVID-19 Update

Total COVID-19 confirmed cases worldwide were at 21,25,42,972 with 44,41,389 deaths. India reported 3,19,551 active cases of COVID-19 infection and 4,35,110 deaths while 3,17,20,112 patients have been discharged, data showed.

Economy

India has emerged as the second most sought after manufacturing destination across the world. According to Cushman and Wakefield's 2021 Global Manufacturing Risk Index, India has surpassed the US as the world's second most desired manufacturing hub. The rising focus on India can be attributed to India's operating conditions and cost competitiveness. It said, reforms to both land and labour laws are critical to India's success as a global manufacturing location.

Strong consumer spending in the German economy fuelled a faster-than-expected recovery in the second quarter -- one that is now looking increasingly uncertain. German output increased 1.6 per cent in the three months through June, compared with an earlier estimate of 1.5 per cent, the statistics office said on Tuesday. The rebound was driven by a 3.2 per cent jump in household spending, strong financial support and raising capital investment. While this puts the economy on track to reach pre-crisis levels in the next few months, according to the Bundesbank, risks to the outlook are emerging.