Most of the sectoral indices ended in the green today. The nifty Auto index gained the most, up 1.4 per centShare Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended higher for the fifth consecutive session on Wednesday. The S&P BSE Sensex gained 304 points, or 0.77 per cent to end at 39,879 while the broader Nifty 50 index finished at 11,739, up 76 points, or 0.66 per cent. Titan shares were the top Sensex gainer, up 4.5 per cent, after the company informed that its jewellery division did well in July-September quarter, with a recovery rate of around 98 per cent in the second quarter. Bajaj Auto, Maruti Suzuki, Reliance Industries (RIL), UltraTech Cement, ONGC were among other gainers. On the flip side, Bajaj Finance was the top laggard as the company’s second-quarter business update disappointed the Street. Power Grid Corporation of India, Sun Pharma, Tata Steel, Kotak Mahindra Bank, Bharti Airtel and State Bank of India were other losers on the Sensex. Most of the sectoral indices ended in the green today. The nifty Auto index gained the most, up 1.4 per cent led by Bajaj Auto, Hero MotoCorp and Maruti Suzuki
Highlights
We were a tad shy of achieving the 11800 level today but that target is still open and we should be able to get there. If we sustain that level for a few sessions, our next expected target would be 12000. The Nifty might face some resistance around the 11750-11800 level. Overall the trend is bullish and any dip or correction can be utilised to accumulate for higher targets. The important support level is 11300: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Markets recovered quickly in morning trade and traded in the green throughout the day led by autos ahead of the RBI policy. Although the broader market was a bit lacklustre, we did see sustained buying in Cement and select Pharma counters during the day: S Ranganathan, Head of Research at LKP Securities
The S&P BSE Sensex gained 304 points, or 0.77 per cent to end at 39,879 while the broader Nifty 50 index finished at 11,739, up 76 points, or 0.66 per cent.
In a move to expedite loan sanctioning and disbursement process under Modi government’s PM SVANidhi scheme for nano entrepreneurs, the Ministry of Housing & Urban Affairs will be looking to integrate application programming interface (API) between SVANidhi portal and various banks.
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According to a Pre-Festive channel check report of Emkay Global Financial Services, residential unit sales have recovered to 50% of the pre-Covid levels. This is primarily driven by historically low financing rates, upfront discounts and regulatory reliefs on stamp duty charges. Investment demand is yet to recover and city-centric sales are being driven largely by younger customers in the age bracket of 32-38 years. In H1CY20, residential launches are down 46% yoy to 60,489 units; except for Kolkata (+37%), all other major cities are down 30-80% yoy. Continuing in line with the past trends, 58% of new launches were in the <Rs5mn category.
Samsung, Rising Star, a string of contract manufacturers for Apple as also a bunch of home-grown players are among the mobile phone manufacturing firms that have won approvals to do business in India under the PLI (Performance-linked incentives) scheme. The combined value of their merchandise is estimated at a staggering Rs 10.5 lakh crore over the next five years and many multiples of the current investment Rs 11,000 crore.
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The recent news around SEBI guidelines has put the focus back on the Broader Markets. In the last few months, we have seen a big rally in small caps and midcaps after the crash of March. This has come after more than two years of continuous battering and series of underperformance they had witnessed. However, the last 6 odd months have been great for the investors and the funds alike where they have seen their investment valuations go up substantially.
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Nearly 18 months after foraying into flight ticket booking followed by bus tickets in November last year, Amazon has further strengthened its presence in the travel space. Jeff Bezos Amazon’s India businesses has now partnered with Indian Railway Catering and Tourism Corporation (IRCTC) for customers to book reserved train tickets on Amazon. Amazon is offering 10 per cent cashback of up to Rs 100 on first booking while Prime members would get 12 per cent cashback up to Rs 120/.
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Nearly 18 months after foraying into flight ticket booking followed by bus tickets in November last year, Amazon has further strengthened its presence in the travel space. Jeff Bezos Amazon’s India businesses has now partnered with Indian Railway Catering and Tourism Corporation (IRCTC) for customers to book reserved train tickets on Amazon. Amazon is offering 10 per cent cashback of up to Rs 100 on first booking while Prime members would get 12 per cent cashback up to Rs 120/.
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This week is the RBI MPC outcome, we expect the central bank to maintain a status quo on the back of rising inflation. The focus will be on growth projections, as since February 2020, the RBI has not given a solid economic projection. Meanwhile, the chatter will orbit around the US political scenario. We are observing an occasional bullish attempt in dollar. And as the dollar index marches towards 94 zone, there is an uptrend in USDINR. Also, there still persists an uncertainty in the runup to US presidential elections and this cautiousness will keep dollar bulls active. We expect the USDINR spot to trade in between 73.25-73.75, only a break of 73.75 will open doors for 74 zone: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
The Reserve Bank of India’s Monetary Policy Committee meeting, which got postponed last week as the government was in the process of finalising the new external members, is now scheduled to deliver its decision on 9th October. The biggest question facing the market participants will be the bend of the new external members given their diverse backgrounds ranging from a focus on macroeconomy to agro-economy to financial markets.
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Ahead of presidential elections in the United States, the Trump administration has made H-1B non-immigrant visa rules stricter, which may affect thousands of Indian IT workers seeking an opportunity to work in the US. The technology companies carrying out their operations in the US hire lakhs of employees every year Asian countries such as India and China.
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The dollar extended gains and U.S. equity futures fluctuated as investors weighed the impact of President Donald Trump’s decision to end stimulus talks until after next month’s election. Asian equities were mixed. S&P 500 futures were little changed after the benchmark fell more than 1% overnight. Fresh comments from Trump calling for support for airlines and the Paycheck Protection Program helped reverse earlier losses.
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“On Tuesday, the Ministry of Information & Broadcasting released the Standard Operating Procedures (SOPs) for exhibition of films to prevent spread of COVID-19. As already highlighted in the Ministry of Home Affairs order it also mentioned that no exhibition of film shall be allowed in containment zones and theatres will be permitted to open upto 50% of their seating capacity. It has additional restrictions like only packaged food and beverages will be allowed. Delivery of food and beverage inside the hall/auditorium shall be prohibited. We believe in a couple of weeks post opening restrictions will start easing off. We are positive on multiplex stocks PVR and Inox Leisure given that long term fundamentals are still intact for the sector and stocks prices have corrected ~40% due to covid. We prefer Inox Leisure over PVR as it has a strong balance sheet and it is trading at discount compared to PVR. Although we believe in the short term, there will be challenges for the companies." said Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd.
After a weak opening, Nifty has marches higher strongly. "Nifty Open Interest Put Call ratio rose sharply to 1.57 levels from 1.37 levels. Amongst the Nifty options (08-October), Put writing was seen 11500-11600 levels, Indicating 11500 level to act as a strong support going forward. On the higher side, immediate resistance is seen in the vicinity of 11750-11800 level where calls have been written," said analysts at HDFC Securities.
Solara Active Pharma, a company carved out from the demerger of human API segments of Strides Pharma and Sequent Scientific in the beginning of 2018, has risen along with a list of pharma stocks on Dalal Street that shrugged off pandemic worries and zoomed ahead. After moving 175% higher since the beginning of this year when it traded at Rs 427 per share, to now at a 52-week high of Rs 1,245 apiece, Solara Active Pharma scrip has come a long way. However, analysts at Macquarie believe that not only there is still more upside to the stock, this is the cheapest API stock globally.
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Titan Company share price jumped 5.65 per cent to Rs 1,267.80 apiece after the company informed that its jewellery division did well in July-September quarter, with a recovery rate of around 98 per cent in the second quarter as compared to the revenue of the same quarter in last year.
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On Tuesday, the Ministry of Information & Broadcasting released the Standard Operating Procedures (SOPs) for exhibition of films to prevent spread of COVID-19. We believe in a couple of weeks post opening restrictions will start easing off. We are positive on multiplex stocks PVR and Inox Leisure given that long term fundamentals are still intact for the sector and stocks prices have corrected ~40% due to covid. We prefer Inox Leisure over PVR as it has a strong balance sheet and it is trading at discount compared to PVR. Although we believe in the short term, there will be challenges for the companies: Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd
We maintain our positive view on Reliance Industries Ltd. and expect that the digital and the retail business will be the future growth drivers for the company. We continue to maintain our buy rating on Reliance Industries with a target of Rs 2,543: Jyoti Roy, DVP- Equity Strategist, Angel Broking Ltd
UTI Asset Management Company and Mazagon Dock Shipbuilders’ initial public offerings (IPOs) received good responses from investors. The Rs 2,160-crore UTI AMC IPO received 2.31 times subscription, while the Rs 444-crore Mazagon Dock Shipbuilders subscribed 157.41 times. Mazagon Dock has become the most subscribed public issue this year after Chemcon Speciality Chemicals saw 149 times applications and Happiest Minds Technologies 151 times. The share allotment in UTI AMC and Mazagon Dock is likely to be finalised today.
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UTI Asset Management Company and Mazagon Dock Shipbuilders’ initial public offerings (IPOs) received good responses from investors. The Rs 2,160-crore UTI AMC IPO received 2.31 times subscription, while the Rs 444-crore Mazagon Dock Shipbuilders subscribed 157.41 times. Mazagon Dock has become the most subscribed public issue this year after Chemcon Speciality Chemicals saw 149 times applications and Happiest Minds Technologies 151 times. The share allotment in UTI AMC and Mazagon Dock is likely to be finalised today.
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UTI Asset Management Company and Mazagon Dock Shipbuilders’ initial public offerings (IPOs) received good responses from investors. The Rs 2,160-crore UTI AMC IPO received 2.31 times subscription, while the Rs 444-crore Mazagon Dock Shipbuilders subscribed 157.41 times. Mazagon Dock has become the most subscribed public issue this year after Chemcon Speciality Chemicals saw 149 times applications and Happiest Minds Technologies 151 times. The share allotment in UTI AMC and Mazagon Dock is likely to be finalised today.
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Information Technology major Tata Consultancy Services (TCS) will announce its July-September results today and leading domestic and global brokerage firms are expecting quarter-on-quarter jump in revenues, margins, and profits. Tier-1Information technology players are expected to post strong quarterly results nudged by deal wins, easing of supply side troubles and rapid digitization across the globe. TCS being the biggest IT player, in terms of market capitalization, definitely stands to benefit from the tailwinds that the sector is expected to witness. Shares of the firm were moving between gains and losses on Wednesday morning to trade at Rs 2717 per share.
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Bajaj Finance report key provisional number for Q2FY21. The company acquired 1.2m new customers in the quarter (compared with 1.9m YoY), taking the overall customer base to 44.1m. The new loan disbursal sequentially jumped 2x, however, declined by 45% YoY to 3.6m. Due to lower disbursal, AUM for Q2FY21 remained flat sequentially and YoY. Lower AUM growth might be owing to a short duration loan and cautious approach by management. Credit cost to remain elevated for FY21 and subdued AUM growth to compressed return ratio. Currently, Bajaj Finance trades at 6x of trailing net worth: Angel Broking
RIL share price jumped over 4 per cent in early trade on BSE to trade at Rs 2,305.20 apiece, a day after Mukesh Ambani-controlled company announced Rs 5,512.5 crore investment from the Abu Dhabi Investment Authority (ADIA) in its retail business. In less than a month, Reliance Industries Ltd has raised a total of Rs 37,710 crore in exchange of 8.48 per cent stake in Reliance Retail Ventures Ltd (RRVL).
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Titan Company share price jumped over 4 per cent on the company's second-quarter business updates on jewellery. The company informed that September sales were decent. Company's jewellery unit saw a recovery rate of 98 per cent.
Check prices: Titan Company
Domestic equities have staged a tremendous recovery with Nifty breaching the 11650 mark. 11820 is expected to be a crucial resistance for the Nifty. The Rupee continues to follow a similar trading pattern. Nationalized banks aggressively buy the dips to 73.10-73.15 and buy all the way up to 73.45-73.50. Considering the fact that FDI related inflows are lined up and the reaction function of nationalized banks, we expect the Rupee to continue trading in the 72.90-73.90 range. Bond market continues to remain jittery given the supply that is lined up. Yields on 10y SDLs (which are considered virtually risk free) are 30-40bps higher than yields on AAA PSU bonds. The spread between the 10y GOI benchmark bond and 10y SDLs which was around 60bps until not too long ago has widened to over 100bps now given uncertainty around how states would be compensated for GST shortfall: Abhishek Goenka, Founder and CEO, IFA Global
The markets have opened on a flat note. However, it is still expected to achieve a target of 11750-11800. If it can sustain those levels, we can expect a new target of 12000 during the course of this month. Strong support has been formed around the 11300 level: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
As the investor sentiment remains cautious amid US elections and delay in the US stimulus package, equity markets could remain subdued thereby weighing on the EM currencies. However, in the near term, losses in the rupee shall be capped close to 73.80-74.20 levels given by pipeline of inflows which will turn out supportive for the pair. Broadly the range of 72.50-74.50 levels is likely to remain in place, and from a border perspective, it is advisable to buy on dips close to 72.70-73.10 levels and sell on upticks near 73.80-74.20 levels: Amit Pabari, managing director, CR Forex Advisors
Out of 30 Sensex stocks, 17 scrips were trading in the negative territory. Bajaj Finance was the top laggard, down nearly 5%, followed by Bajaj Finsv, IndusInd Bank, Kotak Mahindra Bank, ICICI Bank, HDFC, Axis Bank and SBI.
Top BSE Sensex gainers at 9.30 AM include ONGC, Maruti Suzuki, Reliance Industries Ltd, Hindustan Unilever, TCS, Nestle India, Titan Company, Bajaj-Auto, among others.
RIL share price gained 1.26 per cent in the early deals on Wednesday to trade at Rs 2,237.90 apiece, a day after the company announced Rs 5,512.5 crore investment from the Abu Dhabi Investment Authority (ADIA) in its retail business.
Check prices: Reliance Industries Ltd
TCS shares were top Sensex gainer, up 1.29 per cent to trade at Rs 2,751.25 apiece on BSE ahead of July-September quarter earnings. Board will also consider share buyback proposal in the board meeting today.
Check prices: Tata Consultancy Services
BSE Sensex fell 24 points or 0.06 per cent to trade at 39,550 while, the broader Nifty 50 index was trading lower at 11,644, down 18 points or 0.16 per cent.
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Tata Consultancy Services would report results today. We expect TCS to register 2.6% QoQ growth in constant currency led by improved demand from BFSI, healthcare and telecom & media, project ramp up, low base and easing of supply side pressure. Further, cross currency tailwind would lead to revenue growth of 3.8% QoQ in dollar terms. In rupee terms, revenue is expected to increase 1.9% QoQ (lower than dollar growth due to rupee appreciation). EBIT margins are expected to improve 129 bps led by cost rationalisation, cross currency tailwind and increase in utilisation. Key things to watch in today's conference call are revival in IT spending, buyback, changes in delivery model, commentary in deal pipeline, trend across verticals and key long term: ICICI Direct Research
Long build up in the Nifty Futures, Long build up in Bank Nifty Futures and rise in the Put Call ratio on the back of Put writing at 11500-11600 levels indicates that one should continue to remain optimistic for the market. Therefore, our advise is remain bullish with the trailing SL of 11500 levels. On the higher side resistance is seen in the vicinity of 11750-11800 levels where Calls have been written: HDFC Securities
BSE Sensex gained 65 points or 0.16 per cent to trade at 39,639 in pre-opening on Wednesday. While, the broader Nifty 50 index has reclaimed 11,700 in the pre-open.
Indian markets are likely to open with a flat to mildly positive bias on the back of mixed global cues amid uncertainty on the stimulus packages and a surge in Coronavirus cases. However, global news flows and sector specific developments will be key monitorables: ICICI Direct Research
A total of six companies including MIC Electronics, Midas Infra Trade, Majesco, Tata Consultancy Services, Unity Infraprojects and Zee Learn are scheduled to announce their July-September quarter earnings later in the day.
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With Sensex having gained over 600 points in the last session and the Nifty 50 ending at a 7 month high, domestic stock markets seem to be in buoyant mood. The Nifty ended at the highest it has been since February 26, and above the key resistance levels of 11,580 and 11,620. “The initial overhead resistance of the down trend line and also a previous swing high of September 16 has been surpassed on the upside around 11550-11620 levels on Tuesday and Nifty closed above it. We now observe three back to back unfilled opening upside gaps in the last three sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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