Stock Market Highlights: Indian equity benchmarks Sensex and Nifty50 ended higher on Monday led by gains in auto, IT and realty stocks amid positive global cues. Broader markets outperformed the frontliners, with the Nifty midcap and smallcap indices closing up 1.5 percent and 0.8 percent, respectively. Among sectors, the Nifty Realty index jumped over 4 percent, followed by Nifty Auto, Nifty IT, Nifty PSU Bank and Nifty FMCG.
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Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
USDINR continued to trade in a lacklustre trading range. Spot closed 6 paise lower at 74.34. Relentless intervention from RBI kept the USDINR supportive, in spite of a weak US Dollar Index. However, we expect volatility pick up over this as we head to the US jobs report on Friday. We expect the range to be between 74.20-74.60 over the near term.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The bulls seem to have a comeback, after a lackluster type movement of last few sessions. A sustainable move above the initial hurdle of 15,880 levels is expected to pull the Nifty towards the next crucial area of 15,960-16,000 and higher in the short term. Immediate support is placed at 15,830 levels.
Ajit Mishra, VP - Research, Religare Broking
Markets started the week on a strong note and gained nearly a percent. Encouraging domestic cues i.e. uptick in GST collection, improved auto sales boosted sentiment and triggered a firm start. However, a lack of decisiveness in the banking pack capped upside as the session progressed. Amid all, healthy buying across sectors such as realty, auto and oil & gas kept the tone positive. Consequently, the Nifty ended with strong gains of 0.8 percent at 15,885 levels. The broader markets too traded optimistically and ended higher in the range of 0.9-1.6 percent. The strategy of selecting stocks based on themes is yielding decent results and we expect the same trend to continue citing the buoyancy in the broader market. However, traders should limit their leveraged exposure and prefer hedged positions for overnight trades.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Technically, the daily intraday charts suggest that Nifty is consolidating near the important resistance level of 15,900. The strong breakout formation is not ruled out if Nifty succeeds to trade above 20 days SMA or 15,800. Above the same, the uptrend texture is likely to continue up to 15,930-15,975 levels. On the flip side, a close below 20 days SMA may increase further selling pressure till 15,745-15,700.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty has opened the week on a strong note with a sharply higher advance-decline ratio. A follow-through upmove is likely over the next few days and Nifty could remain with an upward bias in the 15,817-15,962 band.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, the Nifty index has taken support at the Middle Bollinger Band formation and settled above it. Moreover, the index is continuously trading above 50- days SMA, which suggests bullish strength in the counter. An indicator Stochastic has indicated positive crossover, which supports the bullish trend. At present, the Nifty has support at 15,750 levels while resistance comes at 15,960 levels.
Manish Shah, Founder, Niftytriggers.com
It was a bullish start to the week. Nifty remains in a band of 15,950-15,550 till we see Nifty closing above the gap resistance zone at 15,830-15,880 convincingly. The point in favor of the bulls is that Nifty has closed at the top end of the range but a range expansion candle should have been a more welcome sign. Nifty has crossed above its 20-days moving average but we still need to see a convincing close above the recent high at 15,960. The price pattern for the day with a good advance-decline ratio is suggesting that the breakout should be on the upside. Support for Nifty is at 15,750 which should hold if breakout has to manifest. If Nifty manages to break above 15,960 expect the market to show a swift rally to 16,200-16,300. This could be the biggest buying opportunity in Nifty in two months.
Rupee At Close | The Indian rupee ended higher at 74.33 per dollar, amid buying in the domestic equity market. The local currency opened marginally higher at 74.38 per dollar against Friday’s close of 74.41 and traded in the range of 74.32-74.43.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some lackluster movement and an attempt to overcome the resistance level around the Nifty 50 Index level of 15,900. The expected levels of the market are likely to be in the range of 15,800 and 15,950, and it is going to be crucial for the short-term market scenario to sustain above the 15,800 Nifty50 Index level. The technical indicator suggests, a volatile movement in the market in a small range..
Market At Close | Here are the highlights from today's trading session
- Broader Markets Outperform Sensex & Nifty; Midcap Index At Record High
- Reliance & IT Majors (Infosys & TCS) Lead Market Higher
- HDFC Bank Drags Nifty Bank While Axis, Kotak Bank & SBI Support
- Sensex Rises 364 Points To 52,951 & Nifty 122 Points To 15,885
- Midcap Index Gains 435 Points To End At A Record Closing High Of 28,250
- Nifty Bank Moves 126 Points Higher To 34,710; Axis & Kotak Bank Top Gainers
- Most Auto Companies Gain After Reporting July Sales Higher YoY; Eicher Top Gainer
- Titan Closes Near Record High Ahead Of Its Earnings On Wednesday
- PI Ind Top Midcap Gainer After Ind Swift deal, Stock Surges To Record High
- Chola Investment Rises Over 10% Despite Lower-than-expected Q1
- CONCOR, Piramal, Tata Power, IRCTC, Guj Gas, Balkrishna Ind Top Midcap Gainers
- Max Fin, SAIL, Marcio, Exide & JSPL Amongst Top Midcap Losers
- Market Breadth favours advances; Advance-Decline Ratio At 2:1
Closing Bell | Indian equity benchmarks Sensex and Nifty50 ended higher on Monday led by gains in auto, IT and realty stocks amid positive global cues. The Sensex rose 363.79 points, or 0.69 percent, to close at 52,950.63, while the Nifty ended 122.10 points, or 0.77 percent, higher at 15,885.15. Broader markets outperformed the frontliners, with the Nifty midcap and smallcap indices closing up 1.5 percent and 0.8 percent, respectively.
Among sectors, the Nifty Realty index jumped over 4 percent, followed by Nifty Auto, Nifty IT, Nifty PSU Bank and Nifty FMCG. Titan Company, Shree Cement, BPCL, Adani Ports & SEZ and Eicher Motors led gains among Nifty50 constituents, while UPL, Tata Steel, Bajaj Finserv, Bajaj Finance and Tech Mahindra led the losses.
Yash Gupta Equity Research Associate, Angel Broking
Recovery on the residential real estate market continues its momentum despite the restriction in Mumbai due to the Covid-19 second wave. We have seen strong demand in last 2 quarters and the momentum continues this quarter also. Top 10 listed players continue to gain market share in top cities in India, unorganized players finding it difficult to launch new projects due to weak launch pipeline and unavailability of capital. Listed players like Godrej, Oberoi, Sobha and brigade have a good pipeline of projects to be launch in the next 2 years. We expect the momentum in residential real-estate to continue this year. We have a buy call on Godrej Property with a target price of Rs 1,900.
Market Watch: Sanjiv Bhasin, Director, IIFL Securities
- If Bank Nifty and Nifty are going to 16,000 and 37,000 respectively then HDFC Bank has to lead it. So keep a stop loss of Rs 1,395-1,400. I am looking at Rs 1,500 beyond on HDFC Bank in the month of August. I think HDFC Bank, the parent company HDFC, HDFC Asset Management Company and HDFC Life Insurance Company Limited – it’s time to add these 4 stocks to the portfolio.
- I wouldn’t chase diagnostic stocks. I would rather play the likes of Sun Pharma or Lupin where aside from COVID the generic business is showing a lot of traction and that’s where long-term pharma companies will be. As a disclosure, Sun Pharma and Lupin are our top picks.
Carborundum Universal Q1FY22 | Net profit jumps to Rs 77.1 crore from Rs 19.7 crore, while revenue rises 58.3 percent to Rs 711.6 crore from Rs 449.6 crore, YoY. EBITDA up at Rs 118.2 crore as against Rs 43.5 crore and EBITDA margin improves to 16.6 percent as against 9.7 percent, YoY.
Amarjeet Maurya - AVP - Mid Caps, Angel Broking
Devyani International Ltd (DIL) is the largest franchisee of Yum Brands in India and is among the largest chain operators of quick service restaurants (QSR) in India on a non-exclusive basis, and operates 696 stores across 166 cities in India, as of June 30, 2021. As far as the peer comparison is concerned, the post-issue FY2021 EV/Sales works out -9.9x to (at the upper end of the issue price band), which is low compared to peers (Jubilant Foodworks-15.4x, Burger King India -14.8x, Westlife Development – 10x). Further, Devyani International has a better operating margin compared to Westlife Development & Burger king. We believe this valuation is at reasonable levels. Thus, we recommend a Subscribe rating on the issue.
CLSA on Steel Sector
Chinese steel exports are likely to decline with its aim to cut production. While we await clarity on the steel export tax by China, we believe this is likely to tighten regional demand-supply dynamics further, leading to resilient prices. Recent pilot carbon emission assessments in Chinese provinces is another step towards containing carbon emissions and steel production. Such steps will not only drive higher export opportunities for Indian companies, but also support domestic prices. In our scenario analyses, we find lower exports from China could lead to 10%-47% higher implied values for Indian steel stocks. Tata Steel remains our top pick with a new target price of Rs 1,750 (previously Rs 1,450). Tata Steel is on our India focus Buy list.
Mahanagar Gas expects 6% volume growth over next 5 years
Mahanagar Gas expects six percent volume growth over the next five years, Sunil Ranade, chief financial officer (CFO), told CNBC-TV18. The natural gas distribution company reported earnings for the June-ended quarter with a top down beat. The quarter on quarter (QoQ) decline has also been lower than anticipated and a big positive is the margin figure of 49 percent which is well above street estimates. “We are expecting a good volume rise and have already seen 115 percent rise in Q1FY22 to Q1 of the previous year; definitely we will be crossing levels of FY19-20 volumes. As regards medium to long-term guidance, we hold on to our statement of 6 percent volume rise that we can see on a 5-year CAGR basis,” Ranade said. Read here.
ICICI Bank at day's low along with HDFC Bank
Jyoti Roy - DVP- Equity Strategist, Angel Broking
India's manufacturing output rebounded strongly as indicated by the PMI which came in at 55.3 as compared to 48.1 in June. This is the strongest reading in the past three months and indicates that manufacturing activities are fast recovering from the pandemic induced slowdown in May and June. The expansion was witnessed across all segments including output, new orders, exports, the quantity of purchases and input stocks, while employment too witnessed a marginal uptick after 15-months of contraction. We expect manufacturing activities will continue to expand in the coming months as given significant easing of restrictions in June and July. Moreover, there are also early signs that manufacturing inflation is starting to abate as the PMI numbers indicated the slowest increases in input costs and output charges in the past seven months. Overall the Manufacturing PMI numbers should have a positive rub off on the markets.
ABB India | The company has partnered with Audi India to provide charging solutions for their newly launched, fully electric Audi e-tron and Audi e-tron Sportback.
Buzzing | Real estate stocks rally as property registrations in Mumbai jump to 10-year high
Real estate stocks rallied on Monday after a report showed that property registrations in Mumbai jumped to a 10-year high in July 2021. Shares of Oberoi Realty, Prestige Estate Projects, Sobha, Sunteck Realty, Indiabulls Real Estate and Godrej Properties jumped 4-10 percent lifting the Nifty Realty index over 5 percent during the day. According to a report by property consultant Knight Frank, property registrations in Mumbai stood at 9,037 units in the month of July which is 15 percent increase on a month-on-month basis and 239 percent increase on a year-on-year basis. In fact registrations in July 2021 are 57 percent higher than pre-pandemic levels seen in July 2019. So there is a recovery that we are seeing as far as registrations are concerned. Meanwhile, 53 percent of the total registrations in July were from new sales which compare with 42 percent in June, 29 percent in May and 7 percent in April, as per the report. Most real estate stocks are taking cues from the improved numbers and hopes of demand to sustain going ahead.
Emami Q1 results:
- Domestic Volume growth at 38 percent versus estimates of 28-32 percent.
- Revenue rises 2 percent YoY despite the second Covid wave.
- Margins up QoQ and YoY despite raw material pressure and higher ad spends.
- Most categories have grown over pre-pandemic levels barring Navratna and Male Grooming.
Kalyani Steels Q1FY22 | The company's consolidated net profit jumped to Rs 69.9 crore from Rs 8.7 crore, while revenue increased to Rs 389.7 crore from Rs 121.1 crore, YoY. EBITDA rose to 95.6 crore as against Rs 14.2 crore and EBITDA margin improved to 24.53 percent from 11.72 percent, YoY.
Ramkrishna Forgings | The company has received domestic order worth Rs 51 crore from a Foreign Multinational Tier 1 OEM. The order is to be implemented over the period of 3 years distributed equally.
Market Update | Bulls take charge, but Nifty faces resistance at 15,900
The bulls appear to be in pole control of the markets though once again the 15,900-15,950 zone is proving to be tough resistance. Today’s move is being driven largely by Reliance and Infosys which together have contributed almost 35 percent of Nifty’s upmove. Some of the consumption names like Britannia, Titan and automobile majors like M&M and Maruti have also contributed. It’s another high for the midcap index as well with many F&O stocks like Cholamandalam, PI Industries, IRCTC and Piramal rallying over 7 percent. The Real Estate space continues to shine with names like Kolte Patil and Indiabulls leading the charge. On the options side, 15,800 Put has seen big Open Interest build-up indicating support while 15,900 continues to see Call writing indicating the resistance.