Stock Market Highlights: Indian equity benchmark indices Sensex and Nifty ended higher Tuesday led by gains in banks, automobile and IT shares. Broader markets, midcap and smallcap indices outperformed the benchmarks. Among sectors, Nifty Media surged the most over 14 percent, followed by private banks, IT, auto and realty indices, while selling was seen in Nifty Metals and Nifty FMCG indices.
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Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Market continues to trade in a cautious manner after the recent rally and lack of follow up buying saw benchmark Nifty trim most of its early gains and end a tad higher, which is broadly negative. On intraday charts, the index has formed a triple top kind of formation. The market is still trading within the trading range and for the bulls, 17,450 would be the range breakout level. Above the same, the breakout formation could continue up to 17,500-17,525 levels. On the flip side, trading below 17,350 could possibly trigger an intraday correction up to 17,300-17,275 levels.
Ajit Mishra, VP - Research, Religare Broking
Markets ended marginally in the green in a range-bound session, in continuation to the prevailing consolidation phase. Though the index has been holding at higher levels, it would be difficult to regain momentum without the banking pack, which is still signalling a mixed trend. Amid all, we reiterate our view to continue with a positive yet cautious approach until we see any sign of trend reversal.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed at its all-time high though on an intraday basis it faced resistance from the previous high formed 4 days back. The advance-decline ratio has improved to much above 1:1, bringing some positivity amongst traders. A convincing breach of 17,437 could lead to an acceleration in the upmove. On the other hand, 17,254 could act as a support.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
The spot rupee closed flat near 73.68 levels against the dollar. Foreign Portfolio inflows offset the demand from dollars from state-run banks. However, with the US Dollar Index trading flat but oil prices ticking up, USDINR may continue to see bids at lower levels. Over the near term, we expect a range between 73.45-73.90 on spot.
Rupee at Close | The Indian rupee ended flat at 73.68 per US dollar against the previous close of 73.67 amid a muted trend in domestic equity maket. The local currency opened at 73.62 and witnessed a low of 73.70 and an intra-day high of 73.57 in the day trade.
Palak Kothari, Research Associate, Choice Broking
On the technical front, the Index has given a breakout of the falling trend line and taken support from the extended trendline, which suggests upside movement in the counter. On an Hourly Chart, the Index has taken support from 21 HMA and sustained above the same suggested strength for the upside. Momentum indicators RSI & Stochastic are supporting the positive trend in the index. At present, the psychological level of 17,500 could be a resistance while on the downside, 17,250 may act as support for the index.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty is range-bound between 14,250 and 14,450. This morning we attempted to get past 14,450 but resisted around that level. Until we do not get past either value of the index, we will be trading in a sluggish manner. Since the overall trend is positive, a good trading strategy would be to buy this market on dips.
Market At Close | Midcap outperformance keeps market breadth in favour of advances.
Market At Close | Nifty ends at a record closing high, led by IT & Kotak Mahindra Bank.
Market At Close | Here are the highlights of today’s trading session
-Nifty Ends At A Record Closing High, Led By IT & Kotak Bank
-Midcap Outperformance Keeps Market Breadth In Favour Of Advances
-Sensex Rises 69 Points To 58,247 & Nifty 25 Points To 17,380
-Nifty Bank Gains 141 Points To 36,613 & Midcap Index 398 Points To 29,872
-Media Gains The Most Amongst Indices With All Its Constituents In The Green
-Zee Ent Surges 40% On Oppenheimer’s Letter Seeking Changes To The Board
-Rally In Zee Ent Lifts Other Media Stocks Too, Sun TV Closes 5% Higher
-Bharti, Voda Idea & Indus Towers Move Higher On Reports of Telecom Relief Package
-IndusInd Bank, Indus Towers Gain In-line With Vodafone Idea
-Yes Bank Continues The Gaining Momentum On Stressed Asset Resolutions
-IRCTC, Escorts, L&T Tech, BEL, Ipca, Coforge & L&T Info Hit Fresh 52-wk Highs
-Marico, Nalco, ICICI Lombard, Vedanta, CONCOR Top Midcap Losers
Closing Bell | The Indian equity benchmark indices ended higher Tuesday led by gains in banks, automobile and IT shares. The Sensex gained 69.33 points, or 0.12 percent, to close at 58,247.09, while the Nifty ended 24.70 points, or 0.14 percent, higher at 17,380.00. Broader markets, midcap and smallcap indices outperformed the benchmarks.
Among sectors, Nifty Media surged the most over 14 percent, followed by private banks, IT, auto and realty indices, while selling was seen in Nifty Metals and Nifty FMCG indices. IndusInd Bank, HCL Technologies, Hero MotoCorp, Adani Ports & SEZ and Tata Motors were the top Nifty50 gainers, while UltraTech Cement, HDFC, BPCL, Nestle India and Tata Steel were the top index losers. Read here.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed a small correction and an attempt to hold the level around the Nifty50 Index level of 17,400. it suggests that 17,200-17,250 will be an important support zone for the market to stay positive in the short term. If the market is able to sustain the level of 17,200-17,250, it can witness higher levels of 17,500. The technical indicator suggests a volatile movement in the market in a small range between 17,200-17,500.
Hindustan Aeronautics, Rolls-Royce to make Adour engine parts in India
Hindustan Aeronautics and Rolls-Royce have signed an agreement for Make-in-India Adour engine parts to support Rolls-Royce's international defence customer base.
JK Cement sees cement price picking up in H2FY22; expects co’s volumes to beat industry growth by 10%
Cement prices have been under pressure. Average pan-India prices declined 3 percent on a month-on-month basis in August. Rajneesh Kapoor, chief operating officer, JK Cement, shared an industry perspective on the demand situation and the price outlook. “All across the region, we have seen a price decline of close to 3 percent in the month of August,” he said.
“Traditionally, prices drop in the month of August as the monsoon is at its peak. However, this year’s August is slightly different. Starting from April till August, we registered some of the highest volumes, that was a surprise in terms of the market demand,” he added.
The company expects to be ahead of the market in terms of its volume growth. “We are going to be 10 percent ahead of the market,” Kapoor said. He expects cement price and volume to pick up in H2FY22. Watch here
Nifty50 at 20,000 a real possibility in coming quarters: All Star Charts
Nifty50 has grown as one of the strongest markets in the world, said JC Parets of All Star Charts, in an interview with CNBC-TV18. “When you compare Indian stocks with other emerging markets (EMs), by far India is one of the strongest EMs. While China is getting hit, Russia and Brazil with their natural resource exposure and Indian equities just chugging along, I think Nifty50 at 20,000 is a real possibility in the next coming quarters,” Parets said. He believes Tata Consultancy Services (TCS) has been a winner. Read here
Tata Steel | The company has commissioned India’s first plant for CO2 capture from Blast Furnace gas at Jamshedpur.
CLSA On HDFC Life Insurance
Demand for life insurance following the second wave of Covid-19 has recovered well. While term life business will take more time to return to growth, credit life has seen a healthy recovery aided by higher attachment rates. We continue to believe Exide Life was an expensive acquisition, though its APE growth recovery following the second wave has surprised positively. We maintain our Outperform rating. SBI Life is our top insurance pick.
Buzzing | Godawari Power & Ispat shares hit 5% upper circuit
The shares of Godawari Power & Ispat were locked at 5 percent upper circuit at Rs 1,269.90 on BSE after the company board approved stock split. The Board of Directors of Godawari Power & Ispat in its meeting held on September 14, 2021 have approved the proposal for sub-division of equity share of face value of Rs 10 each of the company into 2 equity shares of Rs 5 each, subject to approval of the shareholders of the company, the company said in an exchange filing.
Laurus Labs | The company has announced that development is underway based on an agreement launched in June 2021 between the company, Unitaid and the Clinton Health Access Initiative (CHAI), to accelerate the development, commercialization, and registration of the best-in-class second- and third-line HIV treatment darunavir boosted with ritonavir (DRV /r) for children.
Bitcoin tops $46,000 mark
Bitcoin was last seen trading with a gain of 3.6 percent at $46,013. Edul Patel, CEO and Co-Founder of crytocurrency trading platform Mudrex, said: "The crypto markets are slowly starting to come out of the consolidation phase... The total crypto market cap went 3.3 percent higher over the past 24 hours."
"Investors should wait before making an entry to get a confirmation that it's not a fake breakout. If the trading volumes remain high and the market sentiments remain positive, we might see the market move higher over the next 24 hours," Patel added. (Catch latest on Bitcoin and other cryptocurrencies here)
Sources say no compulsion for Air India bidders to buy company debt
There is no compulsion for Air India bidders to buy the company's debt, sources told CNBC-TV18. Bidders will have the flexibility to not retain Air India debt and opt for an all-cash deal, they said. Bidders can pay 15 percent in cash and the remaining 85 percent of the bid value for debt, or pay all cash, they said.
The government will use the proceeds from Air India bids to retire the debt. It will move the residual Air India debt to the SPV after adjusting for bidding proceeds.
Newsbreak Confirmed | Zomato Co-Founder and Head of Supply Gaurav Gupta quits
Government likely to launch OFS for Hindustan Aeronautics this month: Sources
The government is likely to launch an offer for sale (OFS) for HAL this month, sources said. The Centre initially looks to sell a 0.15 percent stake or around five lakh shares through the OFS. It may look at offloading more than 0.15 percent if there is strong market demand, they said.
It has asked bankers to give a report on market demand for the HAL OFS.
HAL said it has no comment to offer on the story. A response from DIPAM was awaited.
Wholesale inflation at 11.39% in August, exceeds estimates
Wholesale inflation came in at 11.39 percent in August, higher than Street estimates. Economists in a CNBC-TV18 poll had predicted wholesale inflation at 10.84 percent last month. Wholesale inflation -- or the rate of increase in wholesale prices -- had stood at 11.16 percent in July 2021.
DRE Reddy, CEO of food service company CRCL LLP, said: "The rise in WPI was mainly on account of high fuel and onion prices... The easing food inflation is due to progressive unlocking by states, supply-side bottlenecks getting addressed, and a good monsoon year. Moving forward, WPI is likely to ease out primarily on unlocking, the high pace of vaccinations, and higher farm output,” he said.
Buy Sun TV, UBL: Shrikant Chouhan
Here are two trading calls from Shrikant Chouhan of Kotak Securities:
Zee Entertainment shares surge 32%; may enter F&O ban
Zee Entertainment Enterprises shares traded 32.3 percent higher at Rs 247.2 apiece on BSE with large volumes. By 1:20 pm, a total of 43 lakh ZEEL shares had changed hands so far on Tuesday as against a daily average of 4.9 lakh recorded over the past two weeks, exchange data showed.
ZEEL futures reached 95 percent of the market wide position limit (MWPL).