Asian stock markets were largely in the negative on Tuesday.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty ended Tuesday’s trading session flat with a positive bias. However, this marked their ninth-day straight of gains. IT majors HCL Tech and Infosys were the top index gainers followed by Kotak Mahindra Bank and Reliance Industries Limited. Titan, Sun Pharma, and ICICI Bank were the top drags. Among the financials only Kotak Mahindra Bank shares ended with gains. Broader markets ended lower in the red on Tuesday.
The Consumer Price Index (CPI) inflation reached an eight-month high of 7.34% in September. “The rise in inflation was due to broad-based increases in food prices, while core inflation stayed sticky,” said Rahul Bajoria, Chief India Economist, Barclays. Along with this, the Index of Industrial Production (IIP) declined 8%, the six consecutive month of negative growth. However, analysts believe that there has been improvement in IIP data. Care Rating said that the negative growth is likely to continue in September but the degree of contraction will be sharply lower ahead of the festive season demand.
Highlights
Domestic equity indices ended flat with a negative bias on Tuesday, adding marginal gains as it closed in the green for the ninth-consecutive day. S&P BSE Sensex closed 31.71 points or 0.08% higher while the Nifty 50 closed at 11,934 points. HCL Technologies was the top index gainer, zooming nearly 4% higher during the day, followed by Kotak Mahindra Bank, Infosys, and Reliance Industries. On the other hand, Titan and Sun Pharma were the worst performing Sensex constituents, falling over 2% lower. Kotak Mahindra Bank was the only banking stock on Sensex to end in the green.
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Domestic equity benchmarks Sensex and Nifty clocked the ninth day straight of gains on Tuesday as they ended flat with a positive bias.
As the results season came knocking on the door, leading mutual fund houses in India were seen piling up shares of information technology (IT) firms in the month of September. Almost all fund houses bought at least one of the leading IT sectors players in the previous month, data sourced by Edelweiss Research showed. Among the top ten most bought stocks in the month, four were from the IT sector. IT shares are the hot favourite on Dalal Street as investors look to bank on the expected surge in adoption of digital trends across the globe.
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Sensex was trading flat with a positive bias, helped by Reliance Indsutires and IT stocks such as HCL Technologies, Infosys, and Tech Mahindra. HCL Tech was up over 4% while RIL gained 1.5%.
On the back of strong tailwinds of demand from rural India, unlocking process and industry consolidation, consumer space stocks seem to be in the positive territory. Research and brokerage firm Prabhudas Lilladher expects second-quarter performance for the current fiscal to show signs of recovery on the back of better consumer sentiment and improving the supply chain. It sees an increase of 3.3 per cent in sales and 1.1 per cent in PBT.
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As domestic benchmarks hunt for the 9th day gaining streak, indices were trading flat with a positive bias just over an hour before the closing bell.
“Indian Indices Nifty and Sensex, down by 4 points (0.02%) and 23 points (0.13%) respectively. Indian Indices open higher on back positive global market clues but lost its earlier gains during the 1st half of the day. Today S&P BSE Information Technology (up 1.07%), S&P BSE METAL (up 0.54%) while S&P BSE CONSUMER DURABLES (down 1.10%), S&P BSE Finance (down 0.90%). Today mid caps and small caps are under pressure while defensive sectors like IT are again back in buying interest. We expect Indices to be volatile on back of global market clues. Global Market update - DOW Jones up by 161 points (up 0.57%) and NASDAQ up by 215 points (up 1.89%)," said Yash Gupta - Equity Research Associate, Angel Broking.
Indian Indices Nifty and Sensex, down by 4 points (0.02%) and 23 points (0.13%) respectively. Indian Indices open higher on back positive global market clues but lost its earlier gains during the 1st half of the day. Today S&P BSE Information Technology (up 1.07%), S&P BSE METAL (up 0.54%) while S&P BSE CONSUMER DURABLES (down 1.10%), S&P BSE Finance (down 0.90%). Today mid caps and small caps are under pressure while defensive sectors like IT are again back in buying interest. We expect Indices to be volatile on back of global market clues. Global Market update - DOW Jones up by 161 points (up 0.57%) and NASDAQ up by 215 points (up 1.89%): Yash Gupta - Equity Research Associate, Angel Broking Ltd
The pre-festive package comes in small doses: includes both demand stimulator and infrastructure spending. It is an earnest attempt to revive demand; however, Rs360bn (and if private companies comply with the same, the total would be Rs1tn) is not likely to be sufficient to move the needle. The recovery in demand is likely to be ephemeral and thus not likely to be reflationary in nature, i.e., having a low demand push impact on inflation. In addition, we have witnessed job losses of ~19mn in salaried class - revival in that demand would require more aggressive steps by the govt: Emkay Global Financial Services
Stock markets have jumped over 56% since their March lows with many market participants questioning whether equity valuations are too stretched now. However, if history is any indication, it is just the beginning of a multi year bull run, aided by an economic expansion, that could help stock market investors lap up manifold gains. Post the previous three share market bottoms during a recession, equities have entered a trend that has taken them on a gaining spree that lasted an average of 107 months. Currently stock markets have managed to gain in all months post March, except May and September.
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While the stock will continue to stay listed on the exchanges, and may bear the brunt of failed attempt at de-listing in the near term, the focus will be on :
Discussion around capital allocation will dominate investor concerns, while the operating performance of mining cos is getting better, due to firm commodity prices globally. Historically for cos announcing the de-listing, the stock,(post failed attempt at de-listing), tends to reach the levels before the buy back, which in case of Vedanta was around Rs. 85-90. Book value of Vedanta as of March 31, 2020 was Rs. 147.
~ Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal
"Reliance Industries Ltd. (RIL) is India’s largest company with a dominant presence in Refining, Petrochemicals, Telecom and Retail businesses. Telecom business to witness robust growth over next few years due to tariff hikes and shift of subscribers from Vodafone Idea to other telecom players," Angel Broking said. Target price - Rs 2,543 per share.
Vested Finance, an online investment platform that enables Indian investors to invest in the US stock market, saw total investments in the US markets from India grow by 150% in Q2FY21 compared to Q1FY21. The platform registered 70% growth in the number of new accounts opening.
China’s trade growth accelerated in September as the world’s second-largest economy recovered from the coronavirus pandemic. Exports rose 9.9% over a year earlier to $239.8 billion, up from August’s 9.5% growth, customs data showed Tuesday. Imports gained 13.2% to $202.8 billion, up from the previous month’s 2.1% contraction.
Exporters have benefited from China’s relatively early reopening from its shutdown to fight the virus and from global demand for masks and medical supplies. They are taking market share from foreign competitors that are hampered by anti-disease controls.
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Infosys share price gained over one per cent to hit a fresh 52-week high of Rs 1,146.50 apiece for the second consecutive day on BSE. IT bellwether on Monday announced that it has completed the acquisition of Kaleidoscope Innovation, a full-spectrum product design, development and insights firm innovating across medical, consumer and industrial markets, bolstering capabilities in the design of smart products.
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“Godrej Properties launched the project in the Bangalore market. One of India’s leading real estate developers announced that the company has entered into an outright transaction to purchase a well located land parcel in Sarjapur, Bangalore. Spread across approximately 15 acres, this project will offer approximately 0.15 million square meters (1.6 million square feet) of potential saleable area comprising residential apartments of various configurations. Sarjapur has established itself as one of the most preferred residential locations in Bangalore with good connectivity to Outer Ring Road and several other key hubs of Bangalore. The site is strategically located and offers an extremely well developed social and civic infrastructure with multiple schools, hospitals, retail, residential, and commercial spaces in close proximity. This is positive development for the company," said Yash Gupta - Equity Research Associate, Angel Broking.
Shares of FMCG major ITC continue to move higher for the second-day straight after global brokerage and research firm CLSA upgraded the stock to a ‘Buy’ rating. Shares of the cigarette-to-hospitality giant have disappointed shareholders since June this year, clocking in a 13% fall in the share price while the benchmark S&P BSE Sensex has gained over 20% in the same period. CLSA in its report said that ITC’s FMCG segment is set to become a major value driver, with the company’s legacy cigarette business providing the cash to meet its ambitious goals. CLSA has a target price of Rs 220 on the scrip which translates to a 27% upside from current price of Rs 173 per share.
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The Telecom Regulatory Authority of India (TRAI) has released its monthly data on subscribers (subs) and MNP (mobile number portability) for July’20. Industry active subs dipped 2.1mn. We have forecasted 4mn addition for Bharti Airtel (Bharti) / while 8mn decline for Vodafone Idea (VIL) in Q2FY21, which is justified. Mobile broadband subs addition stood at 6.9mn, with highest addition for Bharti at 4.4mn (second month in row highest addition). Bharti’s MBB subs market share improved 50bps to 25.7% and RJio’s to 52.4% (down 10bps) on active basis. We have built only 5mn data addition for Bharti in Q2FY21 preview, and it has added 4.4mn only in the month of July’20 on a base of 5.3mn addition in the previous month. Thus, we see an upside risk to our Bharti’s Q2FY21 estimates.
~ ICICI Direct
Bharti Airtel share price jumped over 2.5 per cent in the opening deals to Rs 426.30 apiece on BSE, a day after the Telecom Regulatory Authority of India (Trai) released the data. In July, Bharti Airtel added 3.26 million users and the mobile subscriber base of the telecom giant stood at 319.93 million. In today’s trade, the stock opened at Rs 420 and quoted day’s high of Rs 426.30 apiece, so far in the day.
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The Bank Nifty saw a pause in its upward move and snapped its seven-day winning streak. Profit booking was seen in select PSU and midcap banks. However, significant OI at near ATM Call, Put strikes indicate possible consolidation between levels of 23500 and 24000.
Buy Bank Nifty in the range of 23550-23650
~ ICICI Direct
COMEX gold trades modestly lower near $1918/oz after a 0.1% gain yesterday. Gold eased amid some stability in the US dollar and continuing drag in US stimulus talks. However, supporting price is ETF inflows and fresh restrictions to limit virus spread. Gold may remain choppy as equity markets and US dollar are likely to remain volatile amid uncertainty relating to US stimulus package and US Presidential elections news flows. The general bias however may be on the upside as uncertainty about US economy may keep pressure on US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
"The Nifty has opened on a flat note; it has a good support at the 11800 level and till that level is not breached, we could use any dip to accumulate long positions. The resistance on an intraday basis is at 11950 and if we can keep above that, we could go back to 12000 and then 12200," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
The Nifty has opened on a flat note; it has good support at the 11800 level and till that level is not breached, we could use any dip to accumulate long positions. The resistance on an intraday basis is at 11950 and if we can keep above that, we could go back to 12000 and then 12200: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
While the benchmark was trading with losses, midcap and smallcap indices were trading mixed. Nifty junior was flat with a positive bias and so was the Nifty smallcap 50 index. However, the Midcap 50 index was trading with losses.
Nationalized banks yet again bought Dollars heavily around 73, taking the USDINR pair all the way up to 73.40. We expect the USDINR to spend a few more sessions in the 72.90-73.90 range. We expect the Rupee to open around 73.37 and trade 73.25-73.55 intraday: Abhishek Goenka, Founder and CEO, IFA Global
On Tuesday mornign as share markets began hunting for a ninth consecutive day of gains, banking and finance stocks were not exactly on their side. ICICI Bank and IndusInd Bank were the top index drags. These were followed by Axis Bank, SBI, HDFC Bank, and Bajaj Finserv.
S&P BSE Sensex was down close to 50 points on the opening bell today while the Nifty 50 was nearing the 11,900 mark. Cues from Asian peers were negative despite strong surge in US stock markets on Monday.
Sensex ended the pre-open session flat with a negative bias but Nifty managed to inch higher.
After having gained initially in the pre-open session, BSE Sensex was seen tradign flat with a negative bias. Nifty, however, was in the green.
Domestic benchmark S&P BSE Sensex gained over 100 points in pre open session on Tuesday despite weak global cues. Nifty followed suit, inching higher to move past the 11,950 mark.
Wipro: IT bellwether is scheduled to announce its July-September quarter earnings later in the day today. Along with quarterly earnings, the Wipro board is set to consider a share buyback plan today. Research and brokerage firm Centrum Broking expects Wipro to deliver 1.5 per cent QoQ constant currency revenue growth.
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Indian markets could open flat to mildly lower following largely negative Asian markets today and despite positive US markets on Monday. U.S. stock benchmarks finished sharply higher Monday as investors bought technology giants and shifted their focus to corporate earnings starting this week. The moves come against the backdrop of the looming U.S. presidential election and stalled talks for another round of coronavirus stimulus ~ HDFC Securities
An extended session of the 42nd meeting of the Goods and Services Tax (GST) Council on Monday could not arrive at a consensus on the vexed issue of making good the states’ GST revenue shortfall in FY21. While as many as 21 states that have agreed to borrow under a special Option 1 window wanted to fast-track the process and meet their expenditure commitments, another 10 states stuck to their view that the full compensation amount will have to be paid in the current year itself with the Centre itself borrowing the shortfall amount.
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Finance minister Nirmala Sitharaman on Monday sought to create additional demand of Rs 1 lakh crore in the economy in the current financial year, through a clutch of steps that may involve less than Rs 40,000 crore or a tenth of the amount to be saved via expenditure controls already announced, as budgetary cost to the Centre.
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Johnson & Johnson said its Covid-19 vaccine study has been temporarily halted after a clinical trial participant experienced an unexplained illness, the second time that a front-runner developer has paused a trial amid the intensifying race to create a viable immunization against the virus. The New Brunswick, New Jersey-based company said in a statement late Monday the participant’s illness is being evaluated, and that it would share more information after further investigation. J&J’s statement confirmed an earlier report by health-care news provider STAT that the study was paused.
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Domestic equity market benchmarks BSE Sensex and Nifty 50 rallied for the eighth session on the trot on Monday, starting the week on a positive note. But trends on SGX Nifty suggested that this eight-day rally may take a halt today. Market participants will react to macroeconomic data released after market hours yesterday. Retail inflation reached an eight-month high of 7.34 per cent in September, while industrial output continued to contract in August. Besides, rising coronavirus cases, oil prices, stock-specific developments, rupee movement and other global cues will continue to sway investor sentiment.
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"Technically, Nifty has been trading in a Higher Top Higher Bottom formation since the last many days which is a continuation formation and indicates further upside movement. Moreover, it has been trading above its 21 Days Moving Average also which suggests a positive trend for the time being," said Sumeet Bagadia, Executive Director, Choice Broking. At present, Nifty has strong support at 11900 while upside resistance comes at 12080/12150 levels.
"Nifty shifted into a consolidation with narrow range movement on Monday and closed the day higher by 16 points. A small negative candle was formed with upper and lower shadow. Technically, this pattern could be considered as a high wave type pattern which reflect high volatility in the market at the swing highs," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that the overall market breadth has been a area of concern for the benchmark Nifty over the last few sessions.
The Securities Appellate Tribunal (SAT) has quashed a Securities and Exchange Board of India (Sebi) order imposing a penalty of Rs 20 lakh on Dewan Housing Finance Corporation (DHFL) for not complying with norms while issuing non-convertible debentures (NCDs) in 2016-17.
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"August IP took a bit of a pause, as activity improvement moved side-ways, but we expect improvement to resume from September," Rahul Bajoria, Chief India Economist, Barclays. "We continue to expect the economy to experience negative growth in Q3 2020 (July-September), but some improvement is likely relative to the previous quarter of -23.9% y/y growth decline. Recent economic data has shown some signs of a rebound, but underlying recovery will still likely be gradual. Recently, RBI published its own GDP forecast, expecting a 9.5% contraction in FY21, expecting GDP to remain in contractionary territory until Q3 FY20/21," he added