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Stock Market Highlights: Sensex, Nifty end session lower led by bank, metal stocks; RIL drags, Hindalco top loser

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Stock Market Highlights: The Indian market ended near day's low on Thursday following losses due to losses in metal and bank indexes. Reliance Industries' dragged the market most, ending 1.19 percent lower. Barring pharma, media and IT indexes, all others ended in red. Nifty Realty slipped the most amongst its peers, by 1.68 percent followed by Nifty Metal and Nifty PSU Bank. Dr Reddy's Laboratories and Zee Entertainment were the Nfity50 top gainers while Hindalco and Tata Motors remained the index top losers. Market Breadth favours declines; advance-decline ratio at 1:2.

Stock Market Highlights: Sensex, Nifty end session lower led by bank, metal stocks; RIL drags, Hindalco top loser
  • Here are the key highlights from today's trading session:

    1. Market closes lower following Fed's statement of slow US economic recovery

    2. Sensex & Nifty erases yesterday's gains to close with a cut of nearly 1% each

    3. Sensex slips 323 points to 38,980 & Nifty 88 points to 11,516

    4. Nifty Bank falls 253 points to 2,320 & Midcap index 42 points to 17,411

    5. Except Infosys, most Nifty heavyweights end lower; RIL, TCS, HDFC twins top losers

    6. Metal & Steel companies fall on concern over economy revivial; Hindalco top Nifty loser

    7. Dr Reddy’s hits 52-week high on agreement with Russia's Fund for COVID vaccine

    8.HCL Tech gains over 2% after management's upbeat commentary

    9. Coforge, SRF, Jubilant Food, Lupin & Mindtree hits fresh 52-week highs

    10. Tata Motors falls over 2% after JLR's new car regn in EU slips 32% MoM

    11. Happiest Minds makes a stellar debut; closes at Rs 371 v/s issue price of Rs 166

    12. PTC Finance gains nearly 4% on IT Department processing refund of Rs 115 crore

    13. Market breadth favours decline; advance-decline ratio at 1:2

  • Closing Bell: Sensex, Nifty end session lower led by bank, metal stocks; RIL drags, Hindalco top loser

    The Indian market ended near day's low on Thursday following losses due to losses in metal and bank indexes. Reliance Industries' dragged the market most, ending 1.19 percent lower. Other index heavyweights that dragged the market today are TCS and HDFC twins.

    At close, the Sensex closed 323 points to 38,979 while the Nifty50 index ended 11,516, down 88 points. Barring pharma, media and IT indexes, all others ended in red. Nifty Realty slipped the most amongst its peers, by 1.68 percent followed by Nifty Metal and Nifty PSU Bank.

    Dr Reddy's Laboratories, Zee Entertainment, HCL Technologies, Infosys and Maruti Suzuki were the Nfity50 top gainers while Hindalco, Tata Motors, Shree Cement, Bajaj Finserv and Adani Ports remained the index top losers.

    Market Breadth favours declines; advance-decline ratio at 1:2. 

  • RBI announces Open Market Operations today: The Reserve Bank of India has announced another round of OMO on September 24. This time, the central bank will purchase government securities worth Rs 10,000 crore. As per the official statement, the securities maturing in September 2026, October 2029 and September 2031 will be purchased by the RBI. 

  • CLSA positive on large private lenders as interest rate transmission gathers pace

    The Reserve Bank of India (RBI) has reduced the repo rates by 140 bps over the last 12 months with the majority of the repo rate cut of 115 bps between February and May 2020. The pace of interest rate transmission has also picked up over the past 3-6 months. The commercial banks have decreased MCLR significantly by around 80-90 bps over the last six months. While banks only cut the MCLR by 30-40 bps from February to May 2020, the MCLR rate has further come off by 30-40 bps over the past three months. “The RBI’s stance of maintaining surplus system liquidity has led to AAA NBFC yields coming off +100bps in last 3mnts leading enabling 70 bps cut in system mortgage rates,” brokerage CLSA said. Read more here.

  • Yash Gupta- Equity Research Associate, Angel Broking Ltd

    Post listing, Happiest Minds' stock is trading 120% above the issue price, we would recommend booking profits. At current levels, the stock is trading at 54x FY2020 EPS, which is significantly higher than industry peers. From a long-term perspective, digital business will be the key growth driver for the IT sector and Happiest Minds is positioned to take full benefit of the same as the company derives 97% of its revenues from digital services. While we expect Happiest Minds to grow ahead of the Industry current valuations are demanding.

  • Taxes on auto sector fair and consistent, surprised by sudden dissent: FinMin sources

    The government is surprised by the "sudden dissent" from auto companies on the state of taxation, and believes the tax policy for the sector has been fair and consistent for a long time. The response comes in the wake of criticism from Toyota India, which said high tax rates were hurting the sector, and essentially gave a message to the companies that “we don’t want you”.

    In fact, a source in the Finance Ministry said that tax rates have fallen after the introduction of the GST, when compared to the VAT and excise duty rates in the pre-GST era.

    “With the introduction of GST, multitude of taxes in the form of excise duty, special excise duties, cesses, VAT, CST etc., gave way to uniform GST. Vehicles, based on their high pre-GST incidence were placed in 28% slab. Passenger vehicles also attract compensation cess ranging from 1% to 22%. However, with compensation cess, the taxes have not gone beyond pre-GST incidences except maybe in few cases that were enjoying certain duty concessions,” another source in the ministry said. Continue reading.

  • TDI price hike helps GNFC gain over 3%.

  • Multibagger Alert! This pharma stock more than tripled investor wealth in 9 months

    Pharma firm Laurus Labs has more than tripled investor wealth in 2020 on a year-to-date basis surging over 280 percent in 2020 from around Rs 360 in 2020 beginning to Rs 1,368 currently. The gains have come at a time when the market, in general, has seen massive sell-off across sectors. While the overall pharma sector has been on the rise amid the pandemic and has become an investor favourite, Laurus Labs shares have gained the most among its peers.

    For the June quarter, the company's net profit jumped over 11 times to Rs 172 crore against Rs 15 crore during the same period in FY20. Revenues from operations were up 77 percent during the quarter under discussion to Rs 974 crore, a press release said. It was Rs 551 crore in the first quarter of the last fiscal.

    The AntiViral API (active pharmaceutical ingredient) portfolio showcased a strong revenue growth of 19 percent on the back of higher volumes, added the firm. Read more here

  • Rupee Update: The Indian curency ended lower on Thursday at 73.55 against the US dollar as compared to Wednesday's close of 73.52.

  • August mutual fund check: Top large, mid, and small-cap stocks bought and sold


    Equity mutual funds witnessed outflow for the second consecutive month in August with Rs 4,000 crore moving out following an outflow of Rs 2,480 crore in July, AMFI data showed. Except for equity-linked saving schemes (ELSS), focused fund and sectoral categories, all the other equity categories witnessed net outflow.

    ICICI Direct in a recent report pointed out that few investors seem to be using the recent rally to book profit/reduce equity exposure as gross inflows remain stable while gross redemption increases in the last few months

    Meanwhile, SIP inflows moderated and remained at Rs 7,792 crore in August as compared to Rs 7,831 crore in July. Read more

  • Govt sources hit back at criticism of punitive taxation on the auto sector, say 'sudden dissent' is surprising.

  • Experts' View: Jay Thakkar recommends one buy and sell recommendation


    Jay Thakkar of Marwadi Shares recommended Dr. Reddy's Laboratories in the view of its strong momentum. "The stock has started to form higher tops and higher bottom now, it is heading towards Rs 4,950-5,100 levels. So, one should buy Dr. Reddy's with a stop loss of Rs 4,650." Meanwhile, he suggested to sell an auto stock. “Tata Motors seems to have formed a clear double tap pattern on the daily charts. Indicators have provided a sell cross over with a negative divergence. So, Tata Motors can be sold with a stop loss of Rs 151 for a target of Rs 139 and Rs 136,” added Thakkar. 

  • Route Mobile IPO: Check your allotment status now

    The Rs 600-crore initial public offer of Route Mobile, a cloud communications service provider, was fully subscribed on the first day of its listing and ended with a stellar response from the investors. The IPO was subscribed 74.13 times on the last day of its bidding. It received bids for 89.23 crore equity shares against the IPO size of 1.2 crore shares.

    Route Mobile has already garnered Rs 180 crore from 15 anchor investors including Goldman Sachs, Franklin Templeton Mutual Fund and SBI Life Insurance among others. 

    Here's a step-by-step guide to help you check the allotment status on the Route Mobile IPO: You can check the status of your bid here: KFintech. Remember, the details will only appear post allotment. Continue reading

  • Gold rate today: Yellow metal falls on stronger dollar; Support seen at Rs 51,000 per 10 grams

    Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday following weakness in international spot prices amid a strong dollar. However, US Federal Reserve’s pledge to keep rates near zero levels for some time to reach 2% inflation target lent support to the yellow metal prices, analysts said.

    At 10:50 am, gold futures for October delivery fell 0.68 percent to Rs 51,470 per 10 grams as against the previous close of Rs 51,824 and opening price of Rs 51,710 on the MCX. Silver futures traded 1.29 percent lower at Rs 67,891 per kg. The prices opened at Rs 67,900 as compared to the previous close of Rs 68,781 per kg.

    “The gold prices declined after the US Fed’s comments supported the dollar. Recent developments over COVID vaccine also pressurized pecious metal. The bearish trend in gold may remain due to stronger dollar,” said Ajay Kedia, director, Kedia Commodity Comtrade. Read more

  • HSIL's shares rally 10% on consideration of buyback

    HSIL, the manufacturer and trader of building products saw its share price trading as much as 10 percent on Thursday after it said it will consider a share buyback on September 21. On an intra-day basis, the share price touched its 52-week high of Rs 75 per share on the NSE. However, at 12:05 pm, the stock lost marginal gains to trade 6.93 percent higher to Rs 72.55.

    In its exchange filing, the company said, "Meeting of the Board of Directors of the Company will be held on Monday, September 21, 2020 to consider the proposal of buyback of the fully paid-up equity shares of the company."

    In its June quarter earnings, the company reported a net loss of Rs 17.35 crore as against the profit of Rs 14.34 crore in the corresponding quarter last year. Revenue from operations declined to Rs 251.55 crore as compared to Rs 439 crore last year. 

    The Gurugram-based company manufactures, sells and trades building products and packaging products. It also offers services in sanitaryware, faucets and glass bottles. 

  • Flipkart eyes overseas listing as early as 2021


    Walmart Inc-controlled Indian e-commerce firm Flipkart is preparing for an initial public offering overseas as early as 2021, which could value the firm up to $50 billion, sources familiar with the company's plans told Reuters. Bengaluru-based Flipkart, which vies with players such as Amazon.com's local unit in India and India's Reliance Industries, will be aiming for a valuation in the $45-$50 billion range, according to one source with knowledge of the matter. If achieved, that would mean Walmart would have more than doubled its investment. Flipkart is likely to choose between Singapore, or the United States for the initial public offering (IPO), said two other sources, who asked not to be named as discussions are private. "Flipkart is incorporated in Singapore, but listing in the United States, where parent Walmart is headquartered, could give it access to a deeper pool of funds," one of the sources said.

  • Dhanuka Agritech up 7% after company fixes buyback price at Rs 1,000 per share

    Shares of Dhanuka Agritech rallied nearly 7 percent on Thursday, a day after the company approved the buyback of up to 10,00,000 equity shares at a final price of Rs 1,000 per share for an aggregate amount not exceeding Rs 100 crore. Dhanuka Agritech has fixed September 28, 2020 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buy back.

  • Commodity Update | Gold rate today: Yellow metal falls on stronger dollar; Support seen at Rs 51,000 per 10 grams

    Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday following weakness in international spot prices amid a strong dollar. However, US Federal Reserve’s pledge to keep rates near zero levels for some time to reach 2% inflation target lent support to the yellow metal prices, analysts said. Read more here.

  • Telecom Ministry tells Rajya Sabha, it has proposed network audits by all telecom companies. Under unified licence norms, each licensee has to undertake an audit of their networks.

    Stock Market Highlights: Sensex, Nifty end session lower led by bank, metal stocks; RIL drags, Hindalco top loser
  • Market Update | L&T Construction bags Rs 1,000-2,500 crore contracts for its Metallurgical & Material Handling business.

  • Technical View | We opened with a gap down but the trend continues to remain positive. The target of 11,800 is still open and one can utilize this dip to enter long positions on the index. The stop would be closing below 11,300, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.

  • Market Watch: Pritesh Mehta of Yes Securities


    “Nifty pharma is going to outperform Nifty Index and from the pharma space we like Torrent Pharmaceuticals. On the point and figure chart we can see turtle breakout taking place, a double top breakout taking place. The setup is then positive so a buy for a target of Rs 3,050 and keep a stop loss of Rs 2,790.”


    “Second is sell on Maruti Suzuki, we have reached a point where we have to be selective in autos. It was one of the major outperformers in the month of April, but there are signs taking place that certain stocks might drag down. So Maruti is one of them. On daily charts we can see several divergence taking pace, on the weekly charts we can see a pattern of bearish that is playing out so short Maruti for a target of Rs 6,700 and stop loss of Rs 7,150.”

  • Dalmia Bharat share price gains 3% after CLSA retains buy


    Dalmia Bharat share price gained over 3 percent intraday on September 17 after CLSA maintained a buy rating on the stock. The global research firm has retained a buy on the stock and has cut target to Rs 1,000 from Rs 1,010 per share. It is of the view that capacity expansion should enable strong growth in the next few years. At current valuations, investors’ concerns are more than priced in, it added.

  • For Maruti, retail sales have been better than wholesale in August, says ED - (Marketing & Sales) Shashank Srivastava

    Stock Market Highlights: Sensex, Nifty end session lower led by bank, metal stocks; RIL drags, Hindalco top loser
  • JMC Projects jumps 6% as infra firm bags orders worth Rs 1,342 crore


    JMC Projects (India) share price rose over 6 percent in trade on Thursday on reports of infra firm securing new orders worth Rs 1,342 crore across various segments. In a release issued to exchanges, the company said that it received infrastructure projects in East Asia of approx. Rs 725 crore, water supply projects in Odisha totaling Rs 471 crore and a building project in North India of Rs 146 crore. “We are particularly enthused with the new order win in East Asia, which enables us to further expand our presence in the international markets. We are confident that our strategy to diversify in the international markets will open up a huge opportunity for us going forward,” said S K Tripathi, CEO & Dy. Managing Director, JMC Projects. In the current year, the company has received orders exceeding Rs 5,300 crore against the initial guidance of Rs 5,000 crore, he added.

  • Happiest Minds lists at Rs 351, 111% premium over issue price


    IT services firm Happiest Minds Technologies listed on the stock exchanges at a price of Rs 351 per share, a premium of 111 percent from the issue price. The Rs 702-crore initial public offering of Happiest Minds Technologies, promoted by Ashok Soota, garnered massive response from investors as it was subscribed a whopping 151 times. The price band for the offer, which closed for subscription on last Wednesday, was fixed at Rs 165-166 per equity share. Soota was also the founding chairman and managing director of MindTree Ltd. Prior to this, he was the vice-chairman of Wipro Ltd. The company proposed to utilize the net proceeds from the fresh issue to meet long term working capital requirements and general corporate purposes.

  • NEW LISTING: Happiest Minds lists at Rs 383.15 on exchanges; issue price of Rs 166 per share

  • HCL Tech top Nifty gainer after management's comment of returning to pre-COVID levels latest by March 2021

    Stock Market Highlights: Sensex, Nifty end session lower led by bank, metal stocks; RIL drags, Hindalco top loser
  • Market Watch: Vikas Khemani, Founder at Carnelian Capital Advisors on Bharti Airtel


    "Telecom is a good space to be in but you have to understand that stock has almost doubled from its lows in last couple of years, in last one to one and a half years based on the hypothesis that the average revenue per user (ARPU) will increase. You have to see that playing out. So I feel that playing out is very important. It is not a small marketcap, you will have to see how ARPUs progress from here. Those kind of things are being considered right now. In my opinion it has done very well and as ARPUs increase, we are waiting for that to pan out. Telecom is an interesting play, there is no doubt about that but it is going to consolidate and then as and when the ARPUs start increasing, you will see things panning out well."

Stock Market Highlights: The Indian market ended near day's low on Thursday following losses due to losses in metal and bank indexes. Reliance Industries' dragged the market most, ending 1.19 percent lower. Barring pharma, media and IT indexes, all others ended in red. Nifty Realty slipped the most amongst its peers, by 1.68 percent followed by Nifty Metal and Nifty PSU Bank. Dr Reddy's Laboratories and Zee Entertainment were the Nfity50 top gainers while Hindalco and Tata Motors remained the index top losers. Market Breadth favours declines; advance-decline ratio at 1:2.