Sensex and Nifty closed in the red, snapping their 8-day rally.Share Market News Today | Sensex, Nifty, Share Prices LIVE: Sensex and Nifty snapped their eight-day rally on Thursday and ended in the red. S&P BSE Sensex closed 43,357 points and NSE Nifty 50 ended at 12,690. Financials were pulling indices lower with SBI slipping 3% and Kotak Mahindra Bank, IndusInd Bank, and ICICI Bank closed down 2% each. Among the top gainers were HUL, ITC, and L&T. Midcap and smallcap indices closed higher in the red, outperforming the benchmark indices. India VIX was down over 6% on Thursday.
Marching on the mission of making in India, the Prime Minister Narendra Modi-led Union Cabinet on Wednesday announced Rs 2 lakh crore of production linked incentives for 10 major manufacturing sectors. The government is looking to replicate the success it garnered from the PLI scheme for the mobile phone manufacturing sector. The ten select areas are Advance Chemistry Cell Battery; Electronic/Technology Products; Automobiles & Auto Components; Pharmaceuticals drugs; Telecom & Networking Products; Textile Products; Food Products; High-Efficiency Solar PV Modules; White Goods (ACs & LED); and Speciality Steel.
Highlights
The eight day strong rally of Sensex and Nifty was brought to a halt on Thursday as the benchmarks ended lower in the red.
The additional outlay is over and above INR 8,000 crores already spent this year. It will help 12 lakh houses to be grounded and 18 lakh houses to be completed. This will help bridge the housing gap in the country to a good extent and is simultaneously an excellent economic growth driver by creating more employment.
~ Anarock
"For developers, this move will help clear unsold stock. As per ANAROCK Research, there are approx. 5.45 lakh unsold units across the top 7 cities priced up to INR 1.5 Crore while another 49,290 units priced between INR 1.5 Cr to INR 2.5 Cr," said Anuj Puri, Chairman – ANAROCK Property Consultants.
Multiple raids conducted by the Income Tax department at premises of a leading bullion trading firm in Chennai detected undisclosed income of over Rs 500 crore, the CBDT said on Thursday. The searches were carried out at 32 locations in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Trichy, Madurai and Tirunelveli on Tuesday.
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IPO Watch: Sequoia Capital-backed Indigo Paints has filed draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) for a proposed Rs 1,000-crore IPO. The paints manufacturer and its shareholders are looking to raise the money by listing the company on the stock exchanges through the public issue, news agency PTI reported. Indigo paints will join a long list of companies that either made their stock market debut or are looking to do so this fiscal year.
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Shares of HDFC zoomed nearly 2% from Rs 2,293 per share at 1:45 PM today. The sharp jump came after the Finance Minister announced releif for homebuyers.
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LIC Hosuing Finance shares gained 1% in a short time frame of 30 minutes. LIC Housing Finance shares were trading at Rs 316 per share.
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Shares of PNB Housing Finance shares were trading at Rs 376 per share at 1:45 today. In half an hour the stock price gained nearly 1%.
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The Finance Minister today announced measures to boost the sales of the unsold inventory of houses. Stocks like PNB Housing Finance stocks moved higher on the back of the announcement.
Among the top drags on Sensex were leading banking stocks such as Kotak Mahindra Bank, SBI, IndusInd Bank, ICICI Bank, and Axis Bank. All were down over 2% each. Bank Nifty index was down 1.84%.
While Finance Minister Nirmala Sitharaman announced the latest set of measures taken by the government, Sensex had tanked over 400 points but soon the benchmark index trimmed some of its losses. However, it continued to trade with losses. Nifty was below 12,700.
With Nifty expected to map its way towards the 14,100 target given by Goldman Sachs, the global brokerage house believes that cyclical sectors will perform better as economic recovery continues to gather pace. “We retain our core overweights in internet and media, consumer retail and services and tech hardware sectors,” the report said. With an upturn in growth and a lag in policy tightening, Goldman Sachs said that a sweet spot for equities, especially with light investor positioning has been created.
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Moody's today said it has raised its GDP forecast for India, prompting Finance Minister Nirmala Sitharaman to present it as a testament to India’s economic recovery. Moody’s Investor Service trimmed the estimate by which the economy is likely to contract.
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Global investment bank Goldman Sachs has once again turned bullish on Indian share markets, raising its 2021 target on NSE Nifty 50 to 14,100 points, and raising India back to ‘overweight’. The reversal comes with Goldman Sachs saying that earnings are likely to continue improving for the next two years after the sharp fall this year and a global recovery from the pandemic that jolted equity markets earlier this year. Earlier in April Goldman Sachs cut India to ‘marketweight’ claiming that the worst might not be over for Indian equity markets.
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The newly listed Midspace Business Parks REIT announced its quarterly earning yesterday. Total income during the July-September quarter was at Rs 278 crore while Net profit came it at Rs 104.2 crore Shares of Mindsoace Business Parks REIT were trading with a positive bias at Rs 305.18 per share on Thursday morning.
Sensex and Nifty seem to be reversing the trend of muted performance in the last one year, with a sharp 6% in just the last five trading sessions. In the last one year, Sensex managed to gain 8% while the Nifty 50 gained merely 4%. This slow growth in the benchmark indices during the last 12 months was due to the coronavirus pandemic and the carnage it caused in March. Now with Diwali just around the corner, investors must cherry pick their trades so they can reverse the trend and see the returns of their portfolios multiply. SBICAP Securities has picked eight stocks that they suggest investors buy this Diwali. Here are the top three stock picks with maximum upside potential.
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Long build up was seen in Nifty Futures’ where Open Interest increased by 3.84% with Nifty rising by 0.93%. Bank Nifty Futures to saw building up of long positions where OI increased by 3.11% with Bank Nifty rising by 0.60%. Nifty Open Interest Put Call ratio is currently at 1.66 level compared to yesterday at 1.71. Amongst the Nifty options (12-Nov Expiry), Call options saw fresh built up from 12800 – 13100levels, Indicating this positive move in the Nifty could continue towards 13000 level. On the lower side, support is seen at 12700 levels where we have seen massive addition in Puts.
~ HDFC Securities
"Sustained FII buying (Rs 6027 crores yesterday) is imparting strength to the market even at high levels. This month, so far, around $ 4 billion have come in. DII selling is having no impact on the market. Investors have to be cautious at these levels. Remain invested in quality large-caps. Prospects for segments like IT appear good even at present levels. Last month witnessed lots of mutual fund redemptions & stoppage of SIPs. These decisions have already been proved wrong," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"The Nifty seems to be taking a breather which is natural and healthy for a trend to sustain. If it gets past yesterday's high, it will resume it's uptrend. The overall target for the index could be in the vicinity of 13000 and hence corrections can be fruitfully utilized to enter the markets. We have good support at 12000 and till that holds, we can aim for higher targets," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Mahindra & Mahindra, Titan Company Ltd, Infosys, HCL Tech, and Tech Mahindra were some of the top gainers on Dalal Street even though the benchmarks were trading in the red.
Sensex pared some losses after the initial few minutes of trade. Nifty too was seen inching higher, crossing the 12,730 mark.
HDFC, Kotak Mahindra Bank, ICICI Bank, IndusInd Bank, ICICI Bank were among the top drags on Sensex.
S&P BSE Sensex opened with losses on Thursday morning. Nifty 50 too was in the red but managed to hold on to the 12,700 mark.
Pre-open session saw Sensex and Nifty slip on Thursday morning, Nifty just held on to the 12,700 mark.
Nifty was just holding on to 12,700 during Thursday pre-open session while the benchmark Sensex was down over 200 points.
Minutes into the pre-open session, it was the 50-stock Nifty that slipped into the red while Sensex moved higher to trade with marginal gains.
In the pre-open session on Thursday morning, Sensex fell over 300 points while Nifty 50 managed to breach the 12,800 mark.
"The upside momentum has continued for the seven sessions and the market is now nearing a overbought region. The presence of crucial long term resistance around 12800-12850 and the emergence of intraday volatility could signal chances of reversal from the highs," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that long positions needs to be protected with appropriate stoploss. "We are unlikely to see any significant upmove above 12800-12850 levels. The formation of reversal pattern at the highs could confirm a quantum of decline from the highs. Immediate support is placed at 12665," he said.
"Nifty is now nearing a crucial long term resistance of around 12800-12850 levels (ascending long term trend line on the monthly chart, connected from a tops of Aug 2018 and June 2019. This is going to be a strong overhead resistance for the market and the selling pressure is expected to emerge from the highs," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
After witnessing a dream rally last week, the Nifty continued to rally this week to new lifetime highs. The Nifty has been continuously moving higher since last week after finding support at the 50-day SMA and breaking out of a 3-day trading range on last Tuesday. The Nifty also remains above the 20-day and 50-day SMA and has now closed at a new life time high after clearing the recent highs of 12026. The odds therefore do seem higher of the Nifty moving up further towards the 12900-13000 levels in the coming sessions. Short term sell offs however cannot be ruled out.
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Aviation names like SpiceJet and IndiGo could benefit from the government’s decision to increase the capacity on domestic carriers to 70% from the earlier 60%, following the easing in covid-19 guidelines.
In the last five trading sessions, S&P Sensex and the NSE Nifty 50 have surged nearly 6% each, aided by a vaccine shot, end of uncertainties around US Presidential Elections, and a nudge by the MSCI. Yesterday Sensex did slip and fall into the red but investors saw the dip as a buying opportunity and the benchmark ended higher. It is now time to plan your investments in a stock specific manner that shields your portfolio of any likely near term correction.
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Even as it estimated GDP would contract by just 8.6% year-on-year (y-o-y) in the September quarter following the 23.9% y-o-y contraction in the June quarter, Reserve Bank of India (RBI) on Wednesday highlighted three primary risks to recovery.
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The ten select areas are Advance Chemistry Cell Battery; Electronic/Technology Products; Automobiles & Auto Components; Pharmaceuticals drugs; Telecom & Networking Products; Textile Products; Food Products; High-Efficiency Solar PV Modules; White Goods (ACs & LED); and Speciality Steel.
Prime Minister Narendra Modi-led cabinet today announced Rs 2 lakh crore of production linked incentives for 10 major manufacturing areas ahead of Diwali. The government said that the move will help increasing production, exports, and employment in the country, giving support to the Atmanirbhar Bharat. Union Minister Prakash Javadekar said that while foreign mobile makers have come to manufacture in India, domestic companies like Lava, Micromax, Karbonn, etc will also be benefitted from the scheme. He added the government aims to prepare global champions.
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