Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher on Friday led by across the board gains amid positive global cues. Broader markets, smallcap and midcap indices outperformed the benchmarks. Barring Nifty FMCG, all the sectoral indices ended in the green led by metals, PSU Banks, pharma and auto indices.
Thank you, readers! That's all from CNBC-TV18.com's live market coverage today. Please do log in again on Monday for another day of market coverage. Stay Safe!
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty once again rose gradually, this time pulled up by Banks and Metal shares. After one negative week, it closed the current week with a gain of 1.13%. The Nifty could remain in the 15,901-15,761 band for the near term. However, it seems likely that a new high in Nifty may be made in the coming week. The action seems limited to a few stocks/sectors on a rotational basis and the overall mood in the markets is still not euphoric. This is a good sign that may prevent a fast reversal.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The Nifty has spent almost two weeks below the 15902 levels, however, if this level is broken, the Nifty will have to move to the 16050/16150 (53750) level. According to options statistics and retracement levels, the Nifty / Sensex will find support at 15800/52800 and 15670/52300. The Nifty will derail below 15670/52300 and could fall to 15550/51800 or 15450/51500. Our strategy should be to reduce the position between the levels of 16050-16150 /53750. The Nifty 50, Sensex, and Nifty IT indices have reached new levels but the Bank Nifty is still lagging behind. If the Bank-Nifty crosses the 35800 levels, it will be able to push back 37710 but all this should happen in the next one week. The Focus should be on Select Technology companies, Auto and Financial stocks.
Nirali Shah, Head of Equity Research, Samco Securities
Nifty 50 index has been trading sideways for almost three weeks now. It seems to be facing a temporary halt after a period of outperformance. Overall market sentiments in global indices look positive and eventually Nifty is also likely to catch up. After a strong bounce back from 15,450, this zone is now being established as a crucial short-term support. We suggest traders maintain a bullish bias on the market and remain watchful for any break of the crucial support, as this would lead to weakness in the short term.
In the coming week, domestic indices are expected to mirror global equities. June auto sales numbers would give investors a fair idea around the revival of ground-level sentiment. However, it would be important to remember that markets have already started pricing in a strong rebound in volumes on expectations of pent-up April-May demand because of an accelerated inoculation drive, strong line-up of launches, life-time low auto loan rates and a favourable monsoon. Investors can closely watch the unlock theme stocks as they could see knee jerk reactions depending on the development in the delta variant.
Ajit Mishra, VP - Research, Religare Broking
Markets inched marginally higher in continuation to Thursday’s rise and settled around the day’s high. The benchmark is hovering near a record high largely led by a gradual pickup in economic activities, as states start unlocking, the expectation of better earnings and ramp-up of vaccination. On the flip side, the possibility of the third wave of Covid can impact market sentiments. We remain cautiously optimistic on the markets and suggest aligning the positions accordingly.
Market This Week | Maruti, Tata Steel, Infosys, Bajaj Finserv top Nifty gainers; Reliance, Kotak Bank, Asian Paints, HUL, Nestle top Nifty losers this week
Market At Close | RIL remains under pressure post the AGM, stock slips to a 1-month low
Market At Close | IT stocks gain after a strong set of earnings by Accenture in Q3FY21
Market At Close | Banks & metals lead market higher, Sensex at record closing high; Reliance keeps gains for benchmarks in check, drags Nifty by 37 points
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The underlying short term trend of Nifty continues to be positive with range bound action. The market is now placed to show upside momentum above the hurdle of 15,900 levels in the coming few sessions. A sustainable move above this area could open further upside towards 16,200 in the near term. Immediate support is placed at 15,770.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Tracking positive cues from the global markets, Indian markets traded on a firm note today, with Nifty inching back near its life-time high that was registered last week. Barring FMCG and energy stocks, most sectors traded in green today, led by strength amongst the metal and banking space. After nearly one month of consolidation, Bank Nifty showed renewed strength today. The index broke out of an inverse Head and Shoulder pattern on the hourly time frame. This is a bullish pattern that indicates an up move. Currently, Bank Nifty is trading near its immediate resistance of 35,350. If it sustains above this next week, we could see the index rising towards the 36,400-36,800 zone soon.
Market This Week | Here are the highlights of market performance this week
- Sensex & Nifty Regain Last Week’s Losses; Both Up Over 1% Each
- Nifty Bank Back In Positive Territory After Falling For Two Weeks; Up Over 2%
- Midcap Index Rises Over 1% & Nifty Junior Nearly 1%
- PSU Bank, IT & Metal Gain The Most Amongst Indices
- Maruti, Tata Steel, Infosys, Bajaj Finserv Top Nifty Gainers
- Reliance, Kotak Bank, Asian Paints, HUL, Nestle Top Nifty Losers This Week
Rupee At Close | The Indian rupee ended flat at 74.18 per dollar, amid buying in the domestic equity market. The local currency opened flat at 74.14 per dollar against Thursday’s close of 74.16 and traded in the range of 74.13-74.24.
Market At Close | Here are the highlights of today’s trading session
- Banks & Metals Lead Market Higher; Sensex At record Closing High
- Reliance Keeps Gains For Benchmarks In Check, drags Nifty By 37 Points
- Sensex Gains 226 points to 52,925 & Nifty 70 points to 15,860
- Nifty Bank Rises 538 Points To 35,365 & Midcap Index 294 Pts To 26,895
- Nifty Metal Surges 3% Led By Tata Steel, JSW Steel, Nalco & SAIL
- RIL Remains Under Pressure Post The AGM, Stock Slips To A 1-month LOW
- IT Stocks Gain After A Strong Set Of Earnings By Accenture In Q3FY21
- Except Kotak, All Nifty Bank Constituents End Higher; ICICI, Axis Top Gainers
- Ashok Leyland Posts A Gain over 4% on better-than-expected Q4
- Positive Management Commentary Leads To An Upmove Of 7% In Apollo Hosp
- Market Breadth Favours Advances; Advance-Decline Ratio At 5:4
Manish Shah, Founder, Niftytriggers.com
Nifty50 closed the week with a candle that closed at the top end of the range of the week. This makes it a bullish candle. On the daily time frame Nifty has been trading below the resistance of 15,900-15,950 for the last couple of weeks. Now it seems that Nifty will start to move above this resistance level. The support trendline and rising moving averages hold at this point. On lower time frame charts are could be seeing a cup-and a handle pattern. Nifty needs to break and hold above 15.900-15.950 for a couple of days to confirm a breakout. With banks, IT, and metals showing active buying interest; Nifty could see an extended run on a break above 15.950. Expect a bout of sharp up move over the next two weeks.
Closing Bell | The Indian benchmark equity indices ended higher on Friday led by across the board gains amid positive global cues. The Sensex gained 226.04 points, or 0.43 percent, to close at 52,925.04, while the Nifty ended 69.90 points, or 0.44 percent higher at 15860.40. Broader markets, smallcap and midcap indices outperformed the benchmarks.
Among sectors, Nifty Metal and Nifty PSU Bank surged over 2 percent each, followed by Nifty Financial Services, auto, IT and pharma indices. Nifty FMCG ended in the red. Tata Steel, Axis Bank, SBI, ICICI Bank and Hindalco Industries were the top Nifty50 gainers, while Reliance Industries, NTPC, Titan Comapny, Hindustan Unilever and Asian Paints, fell the most.
Market Watch: Sanjiv Bhasin, Director of IIFL Securities
On Metals | Tata Steel is at a 10-year high and people will keep doubting why it is at Rs 1,200. So in all this unfortunate event of one and a half years metals have regained their composure after 10-years and there is no capacity that has come up. I think Tata Steel is definitely headed higher and so is SAIL.
On Gas stocks | We have a buy on Mahanagar Gas (MGL) and Gujarat Gas but at much lower levels. Reopening is imminent, people have been locked up, in one year from now you will not get a plane ticket or a hotel room. I think Indraprastha Gas (IGL) and MGL will be laughing their way once the traffic picks up and the volumes grow. Gujarat Gas remains the top pick there.
HDFC Securities on Apollo Hospitals Enterprises
Apollo’s Hospitals Q4 results were in line. Apollo plans to raise external capital in its newly created entity, Apollo HealthCo Ltd. (AHL), which comprises the backend pharmacy business, Apollo medicals, associate brands, and Apollo 24/7 platform. While we value the core business at SOTP of INR3,305/sh, potential value unlocking from AHL remains an opportunity. However, currently, we do not ascribe any value, owing to limited information at hand. Maintain ADD.
Aim to lead in 2-wheeler & passenger car radial tyres; expect revenue from SUVs, CSUVs to increase: CEAT
CEAT at its analysts meet laid down some ambitious targets, aiming for a leadership position in two-wheelers and passenger car radial tyres over the next five years. The company also launched some new tyres called the SecuraDrive. Amit Tolani, CMO, CEAT, said the company has seen demand buoyancy in the after-market segment in June across segments. The second wave of COVID-19 hit April and May demand, but as people are afraid to use public transport, they are going in for personal vehicles and that augurs well for the industry, especially in the two-wheeler and passenger vehicle segments. Read here.
Karnataka halves property tax for hotels, restaurants for FY22
In order to revive the COVID-19 pandemic-hit tourism sector, the Karnataka government has slashed property tax for hotels, restaurants and resorts by 50 percent for FY22. Among certain measures, the state government also offered a complete waiver on fixed rate on power bills for the April-June period for these establishments. Further, for excise license fees and other such charges, the government has given an option to these commercial enterprises to pay only half of the amount now and rest can be paid by December 31. The government will also pay Rs 5,000 as aid to registered tourist guides.
Oil prices rise as global inventories decline
Oil prices inched higher on Friday, and were on track for a fifth consecutive weekly gain, on expectations that demand growth would outstrip supply and OPEC+ producers would be cautious in returning more output to the market from August. Brent was up 4 cents, or 0.1 percent, at $75.60 a barrel, heading for a 2.8 percent jump for the week. US West Texas Intermediate (WTI) crude was up 1 cent, or less than 0.1 percent, at $73.31 a barrel, and headed for a 2.4 percent weekly gain. Both benchmark contracts settled at their highest levels since October 2018 on Thursday.
Yash Gupta Equity Research Associate, Angel Broking
India Pesticides Limited’s IPO is getting a good response from investors. The company has already received a good response from anchor investors, raising Rs 240 crore from anchor investors. If we look at the listing gain opportunity in this IPO, we expect gains of around 10%-20% as the company is fundamentally strong and available at a better valuation than its peers. We have assigned a “Subscribe” rating to India Pesticides Limited’s IPO.
PNC Infra Q4FY21 | The company’s net profit rose 66.4 percent to Rs 150.4 crore from Rs 90.4 crore and revenue jumped 38.4 percent to Rs 1,864.3 crore from Rs 1,346.7 crore, YoY. EBITDA increased 42.3 percent to Rs 419.9 crore from Rs 295 crore, while EBITDA margin improved by 61 bps to 22.52 percent from 21.91 percent, YoY.
Godfrey Phillips Q4FY21 | The company’s net profit jumped 145 percent to Rs 95.2 crore from Rs 38.9 crore and revenue rose 19.3 percent to Rs 706 crore from Rs 592 crore, YoY. EBITDA increased 96.2 percent to Rs 156.7 crore from Rs 80 crore, while EBITDA margin improved by 870 bps to 22.20 percent from 13.50 percent, YoY.
Bernstein turns cautious on Indian markets, reduces return expectations
Bernstein has put out a note saying that they have turned cautious on Indian markets, from being constructive earlier. According to them, more stocks are near all-time peak, valuations remain rich and macro risks could surface. "At this juncture, we are of the view that we should take a pause and reduce our so-called return expectations. We have reached a situation where we are talking about returns, but not as large,” said Venugopal Garre, MD of Bernstein, in an interview with CNBC-TV18. He said: “Over the past six months, we have reached the state where returns have largely been very broad based. More than 70 percent of the top 200 stocks are 25 percent shy of all-time peaks, and more importantly, if you look at earnings growth recovery and micro recovery, which is built in, it is a fairly smooth sail. So, at the margin, there are potentially some downside risks rather than upside risks to that.” Read here.
Moody's affirms IDBI Bank's deposit ratings
Moody's Investors Service (Moody's) affirmed IDBI Bank Ltd's long-term deposit and senior unsecured debt ratings at Ba2. At the same time, Moody's has upgraded the IDBI's baseline credit assessment (BCA) and adjusted BCA to b1 from b2. The outlook on the ratings remain stable as IDBI's improving solvency metrics is offset by risks of lower government support.