Stock Market Highlights: Indian equity benchmark indices, Sensex and Nifty ended lower Wednesday dragged by profit-booking at record high levels amid mixed global cues. Broader markets, outperformed the headline indices, with the midcap and smallcap indices ending higher. Among sectors, losses were seen in IT, metals and pharma stocks, while Nifty Realty rallied the most over 5 percent followed by PSU Bank, consumer durables, oil & gas and media indices.
Ajit Mishra, VP - Research, Religare Broking
Markets took a breather after the recent surge and settled with a cut of nearly half a percent. Markets may see some consolidation ahead and it would be healthy. We reiterate our view to focus on the banking index for further directional move in Nifty. On the downside, the Nifty may find support around the 16,900 zone. Considering the trend, traders should continue with the “buy on dips” approach.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term uptrend in the market remains intact. Though Nifty declined from the highs, still there is no formation of any significant reversal of present uptrend in the market. The consolidation/minor weakness could continue in the next 1-2 sessions, before showing upmove from the lows. Immediate support is placed at 16,950 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty ended the day on Sept 01 with a bearish formation – Dark Cloud Cover. The advance-decline ratio too went marginally in the negative. The shift to largecaps seems to have played out for the time being. 17,153-17,226 could be the resistance band for the Nifty in the near term, 16,951 could be a support.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
Thanks to a suspected intervention from RBI, the rupee managed to close above the 73.00 level at 73.08 on spot against the dollar. Exporter selling and corporate dollar inflows continue to cap the upside. Over the near term, the market will test the resolve of RBI below 73.00 levels. Over the past year, RBI has been an active buyer of dollars below 73.00. If they once again show that kind of resolve, then we may see USDINR slip into a range of 72.75 and 73.75/74 over the near term.
Rahul Sharma, Co-Founder, Equity99
Markets might consolidate for some days now after showing such a huge rally in a short period of time. Nifty has strong support at 17,000 levels below to which 16,950-16,900 will act as crucial support levels, Similarly, on the upper side which is like to arrive in the coming days 17,150 will act as resistance followed by 17,225 – 17,300 levels.
Bank Nifty which showed greater strength and made high of 36,997 & settled at 36,574 at closing which is 119 higher from previous closing levels, Immediate Support for Bank Nifty is placed at 36,500 levels followed by 36,375 – 36,200 levels & similarly upside hurdle is placed at 36,800-37,000 levels.
Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking
The Indian rupee has zoomed to a two-month high even breaching the crucial 73 mark, in tandem with the phenomenal gains clocked by the domestic equity indices as they spiralled higher to mark new record highs. Upbeat Q1 GDP data and strong portfolio inflows as compared to other emerging markets have led to the recent bout of appreciation in the domestic currency. Besides, the global cues have also been supportive of the upwards move witnessed in the local unit. The Dollar Index has tumbled to four-week lows as the Fed Chair reaffirmed a steady economic recovery, but maintained a dovish stance recently and seems in no rush to withdraw the monetary stimulus.
For now, with the positive sentiments ruling the street, the rupee too may stack up some more gains, but the 72.20 mark is likely to cap the upside for the local unit going ahead. A lot would hinge on the August payrolls report scheduled this week, which will provide further clues about stimulus taper timing in the US. Moreover, persistently high inflation in the US economy could lead to renewed strength in the greenback, thereby pressurizing the Indian rupee.
Rupee At Close | The Indian rupee snapped its four-session winning run to close 8 paise lower at 73.08 against the US dollaras muted domestic equities and a strengthening greenback overseas weighed on the market sentiment. At the interbank forex market, the local unit opened at 73.05 against the American currency and witnessed an intra-day high of 72.92 and a low of 73.50.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Markets witnessed profit-taking as rampaging bulls took a break after three days of the rally. Benchmark Nifty has formed a bearish candle which indicates that profit booking at higher levels could continue in the near future. However, the medium-term trend remains bullish. As the rally has been overstretched, markets may witness narrow range activity.
For the trend following traders, the 16,980-16,950 level would be the key level to watch out for. On the flip side, 17,150-17,200 could act as an intraday resistance level. In case of intraday correction, contra traders can take a long bet near the support level of 16,950 with a strict 35 points stop loss.
S Hariharan, Head - Sales Trading, Emkay Global Financial Services
In conjunction with sharp appreciation in INR (USD dropped from 74.3 to 72.8) over the last 3 sessions, FII flows into equities have also picked up pace. This is in some part attributable to inflows at MSCI rebalance on 31 Aug. Alongside these flows, FIIs have also been increasing net long positions in single stock futures for the entire month of Aug – an increase of nearly $3.5 bn.
Nifty continued to out-perform mid-cap & small-cap indices, as Retail sentiment continues to be relatively weak – Retail net long positioning in single stocks has come down by $2 bn. FMCG and consumption-related plays continue to be the leaders in the rally, while sentiments appear to be cooling in IT sector on account on rich valuations and consensus over-weight positioning. Banking continues to be the weakest sector relative to the market. Strong liquidity conditions both domestically & abroad have helped push through a heavily loaded IPO pipeline, and domestic MFs have seen strong responses to new fund offers as well.
Manish Shah, Founder, Niftytriggers.com
Nifty had a small corrective day but closed marginally lower. Nifty has experienced a sharp burst on the upside and a small corrective decline may be coming. Buy this decline is an opportunity to buy the market. Trading in the direction of least resistance is a sure way to profits. Counter trend trading in such a fast move gives excitement but little profits. Furthermore, Nifty is not at any significant resistance.
World markets especially, Asian equity are also giving reversal signals and are poised for more upsides. If you are on the right side of the markets, sit on those profits.
Nifty remains bullish as MACD is in a buy mode and then we also have bullish readings in directional movement oscillators. Any drop to 16,950-16,780 is a good buying area. Weekly expiry tomorrow could be tepid but for the next weekly expiry, it could be a rally to 17,300-17,350. This market condition remains a buy-on decline.
JUST IN | Vedanta announces interim dividend of Rs 18.50 per share, amounting to Rs 6,877 crore.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some lackluster movement and an attempt to hold the level around the Nifty50 Index level of 17,100. the market is going to be crucial for the short-term market scenario to sustain above the 17,000 Nifty50 Index level. If the market is able to sustain the level of 17,000, it can witness higher levels of 17,250-17,300. The momentum indicators like RSI, MACD indicating a positive outlook to continue.
Market At Close | Market breadth favours declines; advance-decline ratio at 4:5
Market At Close | Market sees profit-booking after two days of record close
Market At Close | Here are the highlights of today's trading session
-Market Sees Profit-booking After Two Days Of Record Close
-Sensex Slips 580 Points From Intra-day Record High Of 57,919
-Nifty Falls 150 Points From Record High Of 17,226 Hits Intra-day
-Broader Markets Outperform With Midcap Index & Nifty Bank Closing In The Green
-Realty Index Gains The Most Amongst Indices As Demand Rises; Nifty Realty Up Over 5%
-Nifty Closes 56 Points Lower At 17,076 & Sensex 214 Points Lower At 57,338
-Nifty Bank Rises 150 Points To 36,574 & Midcap Index 212 Points To 28,629
-Tata Motors & TVS Motor Rise While Maruti & Ashok Leyland Slip After Aug Sales
-Metals & IT See Profit Booking; Tata Steel, TCS Amongst Trop Losers
-Asian Paints, Tata Motors, SBI Life, Nestle, Axis Bank, Eicher Top Nifty Gainers
-IEX, Havells, Exide, UBL, CUB, GMR Infra Top Midcap Gainers
-Voltas Rises Over 5% After CS Upgrades The Stock
-Market Breadth Favours Declines; Advance-Decline Ratio At 4:5
Closing Bell | The Indian equity benchmark indices ended lower Wednesday dragged by profit-booking at record high levels amid mixed global cues. The Sensex fell 214.18 points, or 0.37 percent, to end at 57,338.21, while the Nifty closed 55.95 points, or 0.33 percent, lower at 17,076.25. Broader markets, outperformed the headline indices, with the midcap and smallcap indices ending higher.
Among sectors, losses were seen in IT, metals and pharma stocks, while Nifty Realty rallied the most over 5 percent followed by PSU Bank, consumer durables, oil & gas and media indices. M&M, Cipla, Tata Steel, Hindalco Industries and Bajaj Finserv were the top Nifty50 losers, while Asian Paints, Tata Motors, SBI Life Insurance, Nestle India and Axis Bank were the top index gainers. Read here
Market Watch: Deepak Shenoy, Founder, Capitalmind on Real Estate sector
Real estate has not moved in the last ten years at least in Bangalore. Even now maybe we are seeing some early signs of movement but mostly current inventory is getting sold in a certain way. We are not seeing that kind of pick up in residential real estate yet. Some projects, of course, have seen some early bookings. The number of new projects also have not increased. Maybe it is further down the line and we have seen. Things will take their own time. I personally feel it is an interesting point of the cycle but it will still take another two quarters for demand to actually surface.
Ami Organics IPO: Management says only one promoter selling 2% equity in OFS
Specialty chemicals maker Ami Organics, on Tuesday, said it has fixed a price band of Rs 603-610 per share for its Rs 570-crore initial share sale. The three-day initial public offer (IPO) will open on September 1 and conclude on September 3.
In an interview with CNBC-TV18, Abhishek Patel, CPO of Ami Organics, said, “We had acquired Gujarat Organics in FY21. So, all the growth you see in our financials in terms of revenue, which is 42 percent growth, is generated in the organic business only. Inorganic consolidation is not happening on the FY21 balance sheet. So, you can expect additional revenue and profitability out of this through an acquired business unit of Gujarat Organics from FY22 onwards only.” Watch full interview here
TVS Motor Company August Auto Sales
The company's total sales rose 1.1 percent to 2.90 lakh units from 2.87 lakh units, YoY. CNBC-TV18 Poll had estimated sales of 2.97 lakh units. Two-wheeler sales fell 1 percent to 2.74 lakh units from 2.77 lakh units, while three-wheeler sales increased 61 percent to 16,381 units from 10,172 units, YoY. Exports jumped 61 percent to 1.1 lakh units versus 68,347 units, YoY.
Amber Enterprises sees strong contribution from exports over 3-5 years; says chip shortage not a worry
Amber Enterprises India stock has been a big wealth creator in the last couple of years. To discuss the company’s outlook in terms of volumes, market share, and exports, etc., CNBC-TV18 caught up with Jasbir Singh, Chairman & CEO, Amber Enterprises.
Singh said, “As far as the industry is concerned, the volumes were around the 7 million mark in 2019-20, but it fell to almost 5.2 million because of the pandemic in the middle of the season. So, the company too, in tandem with the industry, is currently down to 2.1 million from 3 million. However, if the current run rate witnessed in June, July and August continues, the industry should be somewhere close to 6- 6.5 million this year, which shows things are getting back towards normalcy. If that happens and if a third wave doesn't strike us, we should be able to meet the 2019-20 numbers this year, because we have added some new customers, both in the component sector as well as on the finished goods side.” Read here.
Market Watch: Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services
We like the entire specialty chemical space and Deepak Nitrite is our preferred bet. We also like some of the other players in the space, for example, Galaxy Surfactants; NOCIL, which is a small player in the segment and Clean Science & Technology is a niche play on environmental, social and governance (ESG) theme. We like the overall cement space. In largecap, UltraTech Cement is the preferred player and in midcap is JK Cement.
HDFC Bank’s Wholesale Credit Risk Head likely to join Bank of Baroda
Public sector banks are looking to strengthen their risk management functions and make lateral hires, especially with the government nudging them in this direction. CNBC-TV18 has learned that the Head of HDFC Bank’s Wholesale Credit Risk is set to join Bank of Baroda (BoB) as its new Chief Risk Officer (CRO).
Anantharaman S, Joint Head-Wholesale Credit Risk at HDFC Bank will join as BoB on a contractual basis. He has been with HDFC Bank since April last year after a two-year stint at L&T Finance as its Group CRO, prior to which he was at HDFC Bank between 2006 and 2017. Read full report here.
Equitas SFB launches digital fixed deposits on Google Pay through Setu
Equitas Small Finance Bank (SFB) has launched a new initiative, enabling Google Pay users to book fixed deposits (FDs) on Google Pay in under 2 minutes without having to open a bank account. Initially, this functionality will be available for Google Pay users who are accessing the app from Android.
A tariff hike by Bharti Airtel imminent: Nitin Soni of Fitch
The $2.8 billion fund-raise is likely to improve leverage for Bharti Airtel, and a tariff hike by Bharti Airtel looks imminent, Nitin Soni of Fitch told CNBC-TV18. The fund-raise demonstrates a strong growth potential for the telecom company over the next few years, he said
He also said the forecast blended average revenue per user (ARPU) can improve for Bharti Airtel to Rs 170-180 in the next one year. There is increasing migration of subscribers from 2G to higher-priced 4G services, he said. Soni also said Bharti Airtel has a good balance sheet and is in a strong position.
He expects Bharti Airtel's FY22 revenue and EBITDA to grow over 15 percent each.
JSW Steel says demand sluggish but supplemented by exports; container shortage woes persist
Steel prices have been quite volatile and according to reports they have been a little softer because of the monsoon season, Seshagiri Rao, Joint MD & Group CFO, JSW Steel, discussed his outlook on steel prices.
According to Rao, “Steel demand has picked up but it is still lower than anticipated. The month of April 2021 saw 6.7 million tonne of demand, which has picked up. In the month of July, it was close to 8.25 million tonne. It is still lower than the peak that we saw in the month of March 2021, which was close to 10 million tonne. There is some sluggishness in the overall demand into monsoon season but it is supplemented by exports, which is growing. In the month of July, exports from India were 1.5 million tonne.” Watch full interview here