Stock Market Highlights: The Indian equity benchmark indices, Sensex and Nifty ended at record closing high levels Thursday led by banking and FMCG stocks. Broader markets, smallcap and midcap indices also ended in the green. Among sectors, most gains were seen in Nifty PSU Bank that ended over 5 percent higher, followed by Nifty Fin Services, Nifty Private Bank, Nifty FMCG and Nifty Oil & Gas indices, while IT, metals and media indices closed in the red.
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Joseph Thomas, Head of Research, Emkay Wealth Management
The Sensex and the Nifty moved up to the highest levels ever during the trading session today, supported by a significant up-move in the public sector banks close to 5 percent, and the private sector banks rising by 2 percent. The PLI for the auto sector, greater clarity on the telecom dues with the moratorium announcement, and the likely announcement of guarantees for the Bad Bank soon, etc. were the factors that helped the markets rise higher.
This was again supported by the muted third wave of the pandemic so far, and the aggressive vaccination program by the government, all have added to the positive sentiment. There is also comfort from the fact that with inflation moderating in August from higher levels registered in the last couple of months, the RBI persisting with its accommodative stance for a longer time looks more probable.
Ajit Mishra, VP - Research, Religare Broking
Positive momentum continued for the second consecutive day as markets ended near day’s high with gains of more than half a percent. Markets are continuously hitting new highs on the back of positive news and improvement in the economic scenario. This time the PLI scheme announced by the government has helped banks to rally along with other sectors. Importantly, the banking index has also reclaimed its record high and we expect the momentum to continue.
Amid the recent buoyancy, we reiterate our view to focus on stock selection and overnight risk management as a minor fall in the index usually triggers a sharp reaction in stocks especially when the markets are at a record high.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty continued to march upwards on Sept 16. However, the advance-decline ratio has fallen below 1:1 denoting profit-taking across the broader markets. Sector and stock rotation among the large caps is witnessed. 17,700 is the next target for the Nifty while 17,519 could be the support for the near term.
Manish Shah, Founder, Niftytriggers.com
Nifty continues on a relentless rally as the index breaks out of the crucial resistance zone. Nifty has moved past the R1 pivot off the monthly. This paves the way for a rally towards 18,000 in near future. Market breadth was good as there is broad-based sector participation. Nifty moves along in a rising channel and the top end of the channel is at 17,750-17,840. If this level is taken out there could be some more upsides towards 18,000 odd levels. At best there the zone at 17,750-17,840 could act as a barrier. But the underlying trend and momentum are firmly in the grip of bulls.
Market breadth was good as there is broad-based sector participation. MACD continue to be in a bullish phase and ADX is moving up relentlessly. There are no signs of weakness in the market as yet. Notwithstanding short term declines Nifty is in a firm bull grip and any drop to 17,450-17,500 is a buying opportunity.
Palak Kothari, Research Associate, Choice Broking
On the technical front, Nifty has been trading at the higher high higher low formations and managed to breach its previous resistance level and started trading in uncharted territory which points out strength in the counter. Moreover, the index has been trading above all the moving averages, which adds strength to the counter. Momentum indicators RSI & Stochastic are supporting the positive trend in the index. At present, the index has given a breakout of 17,500 levels, now 17,700 levels could be a resistance while on the downside, 17,400 may act as support for the index.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
The rupee remained ranged and closed flat near 73.51 levels on spot against the dollar. The rise in US Dollar Index offset the negative impact of rising equity markets on USDINR. Thanks to relentless RBI intervention at lower levels and FPI flows and exporter selling, the rupee against the dollar remains range-bound between 73 and 74 levels on spot.
Rupee At Close | The rupee slipped 2 paise to close at 73.52 against the US currency on Thursday, tracking the strengthening of the greenback in the overseas markets. The domestic currency opened flat at 73.51, witnessed an intra-day high of 73.34 and a low of 73.52 against the American currency during day trade. The local unit finally settled for the day at 73.52, down 2 paise over its previous close.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index has moved from strength to greater strength! We flew past the first target of 17,550 and we are now headed to 17,750! Good support lies at 17,500 and until that does not break, traders can accumulate long positions on intraday dips or corrections for higher targets.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The market has once got back to its winning momentum as both benchmark indices hit fresh record highs while Sensex hit yet another milestone of surpassing the 59,000-mark. Despite weak Asian cues, domestic investors continued to bet big on Indian markets as recent data points showed steady economic revival is on track. We saw heavy buying in banking and other financial stocks.
Technically, the index has formed a robust breakout continuation formation and the short-term trend is extremely strong. For the day traders, 17,540-17,580 levels would be the key support level to watch out for. Above the same, the uptrend formation will continue up to 17,690-17,750 levels. On the flip side, Nifty would be vulnerable if it slips below 17,540.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed another day of positive movement after the market was able to sustain the Nifty50 Index level of 17,500. It shows Sustaining above 17,500, the market to gain momentum, leading to an upside projection till 17,850 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Jay Thakkar, Marwadi Shares & Finance
Nifty was consolidating within that range of 17,450-17,250 that was 200 points range which got broken on the upside hence the short-term target would be 17,650. We still have around half percent upside pending in the short term. On the downside, I would say that 17,500 on Nifty is now very crucial support on the immediate basis because that is where we see the highest amount of good open interest now.
17,500 is a crucial support, 17,650 should be the immediate target and thereafter we can see the levels of almost 17,900 as well. That would be the positional target on Nifty.
The Bank Nifty has come back quite well. I would say that the probability of it taking off 37,700-37,800 levels is quite high, it is inching towards 38,000 now in the short term. I have a buy recommendation on both of these indices.
Market At Close | Market breadth slightly in favour of declines; advance-decline ratio at 1:1
Market At Close | Market ends at a record high amid a broad-based rally.
Market At Close | Here are the highlights of today’s trading session
-Market Ends At Record High Amid A Broad-based Rally
-Frontline Indices (Sensex, Nifty, Nifty Bank & Midcap Index) Post Record Close
-Sensex Rises 418 Points To 59,141 & Nifty 110 Points To 17,630
-Nifty Bank Gains 816 Pts To 37,669 & Midcap Index 108 Pts To 30,283
-Financials Along With ITC & Reliance Top Contributors To Nifty
-All Nifty Bank Constituents Record Gains, ICICI, SBI, HDFC Bk Top Gainers
-ITC Ends At A 7-mth High With Biggest 1-day Gain In 16 Months
-Voda Idea & Bks (IDFC Bk, Yes, IndusInd) With Major Exposure To It See Healthy Gains
-PSU Bks Surge Ahead Of Fin Min’s Announcement Of Bad Bank, Nifty PSU Bank Up 6%
-Bharti Airtel Sees Profit Booking, Stock Closes 3% Off Intra-day High
-Indus Towers, PNB, Biocon, Chola Invst, Union Bank, BoB Top Midcap Gainers
-Market Breadth Slightly In Favour Of Declines; Advance-Decline Ratio At 1:1
Closing Bell | The Indian equity benchmark indices, Sensex and Nifty ended at record closing high levels Thursday led by banking and FMCG stocks. The Sensex rallied 417.96 points, or 0.71 percent, to end at 59,141.16, while the Nifty closed 110.05 points, or 0.63 percent, higher at 17,629.50. Broader markets, smallcap and midcap indices also ended in the green.
Among sectors, most gains were seen in Nifty PSU Bank that ended over 5 percent higher, followed by Nifty Fin Services, Nifty Private Bank, Nifty FMCG and Nifty Oil & Gas indices, while IT, metals and media indices closed in the red. IndusInd Bank, ITC, SBI, Reliance Industries and IOC were the top Nifty50 gainers, while Grasim Industries, Bharti Airtel, TCS, Shree Cement and Tata Steel were the top index losers. Read here
Nifty Bank hits fresh record high
Nifty Bank jumped as much as 867.9 points or 2.4 percent to surpass 37,708.75 and touch a new all-time high of 37,720.2.
Paras Defence and Space Technologies will launch its initial public offering (IPO) on September 21 at a fixed price band of Rs 165-175 a share. The IPO will close on September 23, the company said in a statement.
The IPO comprises fresh issuance of shares worth Rs 140.6 crore and an offer of sale (OFS) of up to 17,24,490 shares worth around Rs 30.1 crore by promoters and existing shareholders. Those selling shares on the OFS are promoters Sharad Virji Shah, Munjal Sharad Shah and individual selling shareholders are Munjal Shah, Shilpa Amit Mahajan and Amit Navin Mahajan.
At the upper end of the price band, the IPO is expected to fetch Rs 170.7 crore
Strong support for ITC shares at Rs 220-215: Santosh Meena of Swastika Investmart
"There is no fundamental development for the company but everyone knows the value of the company as it is one of the cheapest counters in the FMCG pack where most of the business verticals are doing well. If there will be any restructuring in the business, it will be the biggest positive trigger for any rerating," Santosh Meena, Head of Research at Swastika Investmart, told CNBCTV18.com
"Technically, ITC has witnessed a powerful breakout of the double bottom formation, which was formed at its 200-day moving average. However, the Rs 235-240 levels are a critical supply zone. If the stock manages to take out the Rs 240 level, we can say that there is the start of a fresh bull run, in which we can expect a target of 285-300 in the near term. On the downside, Rs 220-215 levels will act as a strong support zone," he said.
Market Update | Bank Nifty hits a record high of 37,710.40.
CLSA raises target price on ICICI Bank
The bank’s earnings have multiple levers to surprise, with the sector’s highest growth, better net interest margin (NIM) trajectory vs peers, and a sharp undershooting of credit costs, CLSA said. We reiterate a Buy for top-pick ICICI Bank, raise our SOTP-based target price from Rs 940 to Rs 1,000, and increase earnings estimates 2% as we roll over to Sep-23 book and increase our core bank multiple to 2.85x Sep-23 book, it added.
PFC issues 300 million euro bonds in European market
State-owned PFC on Thursday said it has issued bonds worth 300 million euros for a period of seven years. In a statement, Power Finance Corporation Ltd (PFC) said the issuance which took place on Monday saw strong participation from institutional investors across Asia and Europe with participation from across 82 accounts and was oversubscribed 2.65 times
"PFC successfully issued its maiden 300 million euros 7-year euro bond issuance on 13.09.2021. The pricing of 1.841 per cent achieved is the lowest yield locked in by an Indian issuer in the euro markets," the statement said.
Market Update | State Bank of India (SBI) shares rallied over 4 percent with the trading volumes at 2.43 times of 10-day average.
Oil holds above $75 on US inventories and gas prices
Oil held above $75 a barrel on Thursday, within sight of a multi-week high hit a day earlier, supported by a big drop in US crude inventories and surging European natural gas prices. US crude inventories fell by 6.4 million barrels last week, more than the 3.5 million-barrel drop analysts expected, with offshore oil facilities still recovering from the impact of Hurricane Ida last month.
Brent crude was up 11 cents, or 0.2 percent, to $75.57 a barrel. On Wednesday, Brent touched $76.13, its highest since July 30. US West Texas Intermediate (WTI) rose 2 cents to $72.63.
Bank Nifty 65 points away from record high
The Bank Nifty index traded 2.2 percent higher at 37,644, 64.75 points away from its intraday record high of 37,708.75.
Here's how its components fared in late afternoon deals:
Parle to consider price hikes after Diwali
Mayank Shah of Parle told CNBC-TV18 the company will consider price hikes after Diwali. He also said there is a long runway for growth in the Rs 2,500-crore breakfast cereal market.
The company is seeing good growth in biscuits in the current quarter. Parle is targeting growth of 12-13 percent in FY22.