Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended higher Thursday led by gains in metals and IT stocks amid positive global cues. Broader indices, midcap and smallcap indices supported the rally, gaining over half a percent higher each. Among sectoral indices, Nifty Metal surged the most over 5 percent, followed by IT, PSU Bank and realty indices. Nifty FMCG, Nifty Auto and Nifty Pharma sectors ended in the red.
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Ajit Mishra, VP - Research, Religare Broking
Markets traded firm and gained over half a percent on the day of monthly derivatives expiry. The dovish monetary policy from the US Fed boosted sentiment and triggered a gap-up start. The benchmark inched gradually higher as the session progressed however buying was restricted to select index majors. Consequently, the Nifty index ended with decent gains of 0.5% to close at 15,778 levels It’s prudent to stick with a stock-specific trading approach until we see a decisive trend in the index. Earnings combined with global cues will continue to dictate the trend.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty witnessed a small high low range of 80 points on July 29 despite it being an F&O expiry day. In terms of index, the markets are finding it difficult to breach near term highs. However, the broader market continues to do well, boosted partly by Q1FY22 results. Nifty could remain in the 15,701-15,856 band for the next 1-2 sessions.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty seems to have reversed up, but the momentum on the upside is yet to pick up. A decisive move above 15,810 levels is likely to pull the market towards 15,900 in the next couple of sessions. Intraday support is placed at 15,715.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
On the monthly F&O expiry day, the market witnessed a smart pullback rally, although the July 2021 series has been volatile with a momentum of nearly 450 points. While the sectoral performance in the current month series was mixed with realty and metal indices gaining over 13 per cent, auto and energy indices lost ground and shed nearly six per cent. Technically, for the bulls 20-days SMA or 15,820 on the Nifty would be the key resistance level for the market. On the flip side, 50-days SMA or 15,650 could be the strong support zone. The texture of the chart suggests that trading below 20-days would increase further weakness, while on the other side uptrend wave could continue up to 15,900 if Nifty succeed to trade above 15,820 levels.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
Last night, the US central bank's dovish tone did not go down well with USD bulls. As a result, we have seen an across-the-board sell-off in US Dollar against major currencies globally. However, against the Rupee the losses were modest due to heavy intervention from RBI. Spot USDINR closed 9 paise lower at 74.28. Bias continues to be downward. Over the near term, we may see USDINR trading within a range of 74.00-74.55 on spot.
Manish Shah, Founder, Niftytriggers.com
Expiry of July 2021 saw Nifty closing at the lowest range. It seems likely that a move above 15,950 did not manifest this month maybe it has a date with an August expiry. Nifty saw a green candle and this sort of confirms the previous day’s hammer. The support at rising 50-day moving average holds and Nifty has moved above the rising 20-day moving average. For Nifty 15,950 is a major resistance barrier, and it needs to break above the zone with a strong momentum candle. Before this happens Nifty has to face resistance at the gap up area between15,830-15,880. From the look of it, a close above 15,880 could be an early signal that the Nifty could see a resumption of an up-trending phase.
Sumeet Bagadia, Executive Director, Choice Broking
Finally, the bulls came into action after a three-day fall. On the technical front, the index has been trading in higher highs and lower lows formation and taken support at lower Bollinger Band formation & 50-days SMA, which suggests a bounce back in the upcoming session. However, the Nifty index is struggling in a range of 15,700-15,900 and either side breakout will decide the further direction. At present, Nifty is finding resistance around 15,960 levels while on the downside, support is intact at 15,600 levels.
Market At Close | Market closes in the green, led by metals, RIL & SBI; Market breadth favours advances; advance-decline ratio at 3:2.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed a swift recovery after yesterday’s fall. The market suggests 15,800 will be an important support level in the short-term perspective. If the market sustains above the level of 15,800, the market expects to gain momentum, leading to an upside projection of 15,950 levels. The momentum indicators like RSI and MACD recovered from their respective oversold zone and support the upside move and indicating potential upside from the current market level.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
No progress was made in the markets today. We continue to remain range-bound between 15,400 and 15,900. The volumes are tepid and the movements are lacklustre. Both these levels are crucial in paving the way forward. A break on either end can result in a 300 point move!
Rupee At Close | The Indian rupee ended 9 paise higher at 74.28 per dollar amid buying in the domestic equity market. The local unit opened marginally higher at 74.32 per dollar against the previous close of 74.37 and trade in the range of 74.22-74.33.
Market At Close | Here are the highlights of today's trading session
- Market Closes In The Green, Led By Metals, RIL & SBI
- Sensex Rises 191 Points To 52,634 & Nifty 69 Points To 15,778
- Nifty Bank Gains 159 Points To 34,692 & Midcap Index 197 Points To 27,512
- Metal Stocks Surge On China’s Increase In Export Tariffs From August
- Nifty Metal Rises 5% With Stocks Moving Higher In The Range Of 5-10%
- Hindalco, Tata Steel, SBI, Bajaj Finserv, Tata Motors Top Nifty Gainers
- Maruti Suzuki Closes2% Lower After Reporting A Weak Set Of Earnings
- Bharti Airtel Closes Lower After Losing Subscribers For The 1st Time Since June 2020
- PSU Banks Surge After A Strong Set Of Earnings From Union Bank
- Nalco, L&T Info, Coforge, Vedanta, L&T Tech, SAIL Top Midcap Gainers
- Colgate & LIC Housing Fin Fall Over 4% Each After Lower-than-expected Q1 Earnings
- Market Breadth Favours Advances; Advance-Decline Ratio At 3:2
Closing Bell | The Indian equity indices, Sensex and Nifty ended higher Thursday led by gains in metals and IT stocks amid positive global cues. The Sensex gained 209.36 points, or 0.40 percent, to end at 52,653.07, while the Nifty closed 69.05 points, or 0.44 percent, higher at 15,778.45. Broader indices, midcap and smallcap indices supported the rally, gaining over half a percent higher each.
Among sectoral indices, Nifty Metal surged the most over 5 percent, followed by IT, PSU Bank and realty indices. Nifty FMCG, Nifty Auto and Nifty Pharma sectors ended in the red. Hindalco Industries, Tata Steel, SBI, Bajaj FInserv and JSW Steel led gains among Nifty50 constituents, while Maruti Suzuki, PowerGrid Corporation, Bajaj Auto, ITC and Coal India were the top index losers.
Market Watch: Amisha Vora, Joint MD, Prabhudas Lilladher
I still feel public sector bank being State Bank of India (SBI) and private sector bank like ICICI Bank and Axis Bank still offer very good value and they should continue to give very good appreciation. IT sector will continue to be good. Capital goods as a segment is definitely a place to be.
Tatva Chintan listing: Management expects to continue growth momentum
Tatva Chintan Pharma Chem made a strong debut on stock exchanges on Thursday, with its shares listing at Rs 2,111.85 on NSE, a premium of 95 percent over its issue price of Rs 1,083 apiece. On BSE, the share price of the speciality chemical company opened at Rs 2,111.80 apiece, a premium of 95 percent over the issue price. Its market cap soared to Rs 4,680.82 crore after listing. Chintan Shah, Managing Director of Tatva Chintan Pharma Chem spoke to CNBC-TV18. Shah said, “The first idea of going public was in October of 2020 and then we started this process with scepticism, whether someone will even subscribe to our initial public offering (IPO) or not relatively unknown company outside the speciality chemicals area. So we were even sceptical whether we will get any kind of subscription or whether we can go ahead with the IPO or not and today, we are standing here with this massive response. It's mind-boggling.” Read here.
Lok Sabha passes the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021
The lower house of the Parliament Lok Sabha has passed the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021, which proposes to amend the definition of "major airport" The bill proposes a definition amendment to extend its scope to determine the tariff for a group of airports also. This amendment is likely to aid in the privatisation of airports in pairs.
Amisha Vora, Joint MD, Prabhudas Lilladher on Metal stocks
At current prices also the kind of profits that these companies will make will change the colour of their balance sheet completely in turn making them very ready for major growth. From hereon, pretty much steam is left - when we look at the pack of Tata Steel and JSPL or we look at Hindalco on the other side – both because of not only the firm prices, expanding margins and expanding capacities and as I always say complete change in their balance sheet structure.
Granules not considering stake sale; says looking at inorganic growth
Granules not looking at any stake sale, Priyanka Chigurupati, executive director of the company informed CNBC-TV18. The pharmaceutical company reported earnings for the June-ended quarter with growth led by fixed dosages and pharma formulation intermediates. “We are not doing anything. We are 100 percent committed to this business and we will stay this way going forward,” Chigurupati said. On fundraising, she said, “I do not think we will be needing any additional funding in the near-term to get into complex molecules.” “Our net debt went up because of working capital requirements, but we are certainly looking at inorganic growth and I do not think it will be over and above what we afford to do at this point. Therefore, it is important to note that any strategic tie-up that we have will fall within the existing realm of our current strategy,” said Chigurupati. Read here.
Rupee at over 3-week high on Fed’s dovish stance, gains in equities
The Indian rupee strengthened to its highest level in more than three weeks against the dollar on Thursday as the US Federal Reserve’s dovish stance was a drag on the greenback, with gains in domestic equities also contributing to the rise. The partially convertible rupee was trading at 74.25/26 per dollar, compared with its close of 74.38. The unit touched 74.2350 earlier, its strongest since July 6.
May Telecom Data
- Bharti Airtel Loses 43.16 lakh Users versus Addition Of 5.17 lakh Users, MoM.
- Reliance Jio Adds 35.5 lakh Users versus 47.56 lakh Users, MoM.
- Vodafone Idea Loses 42.8 lakh Users versus Loss Of lakh Users, MoM.
- Bharti Airtel lost subscribers for the first time since June 2020.
Punjab & Sind Bank Q1FY22 | The bank reported a net profit of Rs 173.8 crore against a loss of Rs 117 crore, YoY. Net interest income (NII) grew 7.8 percent to Rs 579 crore from Rs 537.2 crore, YoY. Gross NPA declined to 13.33 percent from 13.76 percent, while net NPA decreased to 3.61 percent from 4.04 percent, QoQ.
Nifty poised to take off for 16,300: ICICI Direct
Nifty is undergoing strong base formation above 15,450 while absorbing a host of unsettling developments like Covid disturbances, Q1 earnings, global volatility, etc. The current strong base formation will act as a launchpad for the next leg of up move within the structural uptrend. Going ahead, a decisive close above 15,950 with multi-sector participation would confirm the resumption of primary uptrend and accelerate upward momentum to 16,300. In case of breach below 15,450 amid global volatility, it may lead to an extended bull market correction that should not be construed as negative. Instead one should capitalise on it as an incremental opportunity to build a quality large-cap, midcap portfolio as we do not expect the index to breach the key support threshold of 15,100. We believe a temporary breather from here on would help broader markets to form a higher base that would pave the way for the continuance of ongoing outperformance.
JPMorgan says influential hedging driving metals, not Chinese demand
There have been technological challenges in China, technology stocks getting beaten up and now the bounce back; emerging markets (EMs) have got a step-brotherly treatment. More money is going into developed markets (DMs), emerging market (EM) economy growth seems to be under a bit of a challenge because of the delta variant taking hold at this juncture and lockdowns being reported in many countries. Speaking in an interview with CNBC-TV18, Jahangir Aziz, Head-Emerging Markets, JPMorgan, shared his views on where the emerging market is. Read here.
Happiest Minds maintains FY22 margin guidance of 22-24%; management bullish on growth
Happiest Minds Technologies’ share price rallied over 290 percent in the last 6 months, but it has slipped after the company reported its June quarter earnings. The company posted strong revenue growth, but the margin contracted owing to wage hikes. CNBC-TV18's Reema Tendulkar spoke with the management of Happiest Minds Technologies, Venkatraman Narayanan, MD and CFO and Joseph Anantharaju, Executive Vice Chairman and CEO of product Engineering Services on the company’s Q1 performance. During Q1FY22, the company saw the company a strong pick up in demand across all verticals. Read here.