Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended higher Thursday led by strong gains across the board amid positive global cues. Broader markets supported the rally with smallcap and midcap indices closing over 1 percent higher each. All the sectoral indices ended in the green with Nifty Metal rising the most 3 percent followed by realty, banks, IT, financial services and pharma indices.
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Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The market witnessed a robust pullback rally on the weekly expiry day after witnessing a sharp correction in the last three sessions. Today, after a strong gap up opening indices maintained strong momentum throughout the day. Technically, the short-term texture of the market is still on the downside. However, today's sharp bounce back indicates the pullback rally is likely to continue if Nifty succeed to trade above 20 days SMA or 15,750 level. We are of the view that 15,750 and 15,700 levels would act as crucial support levels for Nifty. Above the same, the pullback rally is likely to continue up to 15,880-15,920 levels. On the other side, below 15,700, the uptrend texture would be vulnerable.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
A sharp comeback of bulls on Thursday after a few sessions of decline seems to have changed the negative sentiment of a short term trend. Further sustainable upside above 15,880 levels is likely to confirm another attempt of new all-time highs above 15,960 levels in the near term. Any failure to sustain the highs could trigger a downward correction from the lower top. Immediate support is placed at 15,725.
Ajit Mishra, VP - Research, Religare Broking
Markets recovered strongly and gained over a percent, after trading subdued for the last three consecutive sessions. Upbeat global markets triggered a gap up start which strengthened further as the day progressed. Markets are currently dancing to the global tunes and earnings announcements are further adding to the volatility. As the signals are still mixed, we expect volatile swings to continue. Keeping in mind the scenario, we reiterate our cautious view and suggest keeping a check on leveraged positions.
Deepak Jasani, Head of Retail Research, HDFC Securities
Indian equity markets jumped sharply after a three day fall following a bounce in the global markets and return of risk appetite. The Nifty scored the biggest one day gain in 2 months. Global markets were higher Thursday ahead of the European Central Bank meet for a second day as optimism about an economic recovery appeared to outweigh concerns over rising coronavirus cases and inflation. Nifty is on the cusp of the downgap area formed on July 19. If this downgap is filled and we move above 15,883, then the path to further upmove opens up towards 15,915-15,962 band.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
USDINR spot touched an intra-day low of 74.33, the lowest level since 5th July. However, alleged intervention from RBI pulled it back towards 74.47 by close of trading, still down 15 paise for the day. NSE USDINR July futures are also trading 16 paise up from their intra-day low of 74.36, currently at 74.51, down 19 paise for the day. All eyes are on ECB meeting tonight. Over the near term, USDINR may continue to oscillate within a range of 74.20-74.60, bracketed by RBI's demand for $ and risk on mood globally.
Rupee At Close | The Indian rupee ended 15 paise higher at 74.46 per dollar, amid buying in the domestic equity market. The local currency opened 18 paise higher at 74.43 per dollar against Tuesday’s close of 74.61 and traded in the range of 74.32-74.52.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some positive movements and an attempt to hold the support level around the Nifty50 Index level of 15,800. It is going to be crucial for the short-term market scenario to sustain above the 15,800 Nifty50 Index level. Sustaining above 15,800, the market expects to gain momentum, leading to an upside projection till 15,900-15,950 level. Technical indicators suggest, a volatile movement in the market in a small range. The traders to refrain from building a fresh buying position, until the market sees any further decisive movement.
Market At Close | HUL, Asian Paints & Bajaj Auto Drag
Market At Close | Market Breadth Favours Advances; Advance-Decline Ratio At 2:1
Market At Close | Sensex & Nifty Close At Day’s High While Nifty Bank Ends Off Highs
Market At Close | Here are the highlights of today’s trading session
- Sensex & Nifty Close At Day’s High While Nifty Bank Ends Off Highs
- Infosys, ICICI & Reliance Lift Nifty While HUL, Asian Paints & Bajaj Auto Drag
- Nifty Closes 192 Points Higher At 15,824 & Sensex 649 Points Higher At 52,847
- Nifty Bank Rises 262 Points To 34,677 & Midcap Index 311 Points To 27,538
- Market Breadth Favours Advances; Advance-Decline Ratio At 2:1
- Metal Cos Bounce Back On Optimism Over Robust Earnings; JSW Steel Top Nifty Gainer
- Bharti Airtel Amongst Top Nifty Gainers After Co Rejigs Its Postpaid Plans
- Bajaj Fin & Bajaj Finserv Surge Despite Reporting Lower-than-expected Earnings
- UltraTech, Bajaj Auto & HUL See Profit Booking After Q1 Earnings
- Reliance Ind Closes 1% Higher Ahead Of Earnings Tomorrow
- Jubilant Food, Havells & ICICI Pru Closes With Healthy Gains Post Strong Earnings
- Unlock Theme Stocks (AB Fashion, Trent) Surge In Trade, Up 5-7%
- Muthoot & Manappuram Finance Amongst Top Midcap Gainers, Up 5-7%
- IDFC Surges 12% After RBI’s Clarification On Promoter’s Exit From IDCF First Bank
- Jindal Stainless, Vardhman Special Move 17-19% On Cabinet Nod For Seciality Steel PLI
Closing Bell | The Indian equity benchmark indices ended higher Thursday led by strong gains across the board amid positive global cues. The Sensex jumped 638.70 points, or 1.22 percent, to end at 52,837.21, while the Nifty closed 191.95 points, or 1.23 percent, higher at 15,824.05. Broader markets supported the rally with smallcap and midcap indices closing over 1 percent higher each.
All the sectoral indices ended in the green with Nifty Metal rising the most 3 percent followed by realty, banks, IT, financial services and pharma indices.On the Nifty50, JSW Steel, Tech Mahindra, Bajaj Finance, Bharti Airtel and Tata Steel were the top gainers, while Hindustan Unilever, Asian Paints, Bajaj Auto, Cipla and Mahindra & Mahindra wer the top losers.
Mutual Fund Corner: SWOT analysis of hybrid funds
In 2018, when market regulator the Securities and Exchange Board of India (SEBI) undertook the reclassification of mutual fund categories, the erstwhile balanced funds was split into 6 distinct categories which have varying risk appetites and the name was changed to hybrid - because they have a mix of equity and debt. The hybrid universe itself is a little shy of Rs 4 lakh crores but growing consistently. In June itself, there was a big bump up in flows compared to the previous months. In fact, on a month basis, more money is coming into the hybrid category compared to the mainstream equity funds. R Sivakumar, Head-Fixed Income, Axis AMC and Anupam Tiwari, Fund Manager-Equity, Axis AMC spoke to CNBC-TV18 to talk about flows into hybrid fund in the month of June, and do a SWOT analysis of hybrid funds. Watch here.
Financial bids for Air India likely to be received by September 15: MoS Civil Aviation V K Singh
Financial bids for Air India are likely to be received from qualified interested bidders (QIBs) by September 15 this year, Minister of State for Civil Aviation V K Singh said on Thursday. The Centre had invited Expression of Interests (EoIs) for Air India on January 27, 2020. The last date of submission, after multiple extensions due to the COVID-19 pandemic, of EoIs was December 14, 2020. "Multiple EoIs were received by Transaction Advisor. The EoIs were evaluated by the Transaction Advisor for the selection of QIBs. Request for Proposal (RFP) along with draft Share Purchase Agreement (SPA) have been shared with QIBs by the Transaction Advisor on March 30, 2021, for submission of financial bids," Singh stated. Read here.
Market Watch: Deepak Shenoy, Founder, Capitalmind
On telecom | If Reliance keeps the prices low, no other players can increase prices – Bharti Airtel is going against that and it has in the last few months. We own Bharti, we also own Reliance. So we are betting on the two of them getting maximum market share.
On HUL | We may not have invested right now, I think it is very expensive, for this kind of growth I wouldn’t pay this kind of valuations. Overall not interested in this expensive FMCG. HUL is still at 70 times earnings for what is a 12 percent company. it is a good story but not investing.
HDFC Securities on Asian Paints
Asian Paints' topline delivery (91% YoY) exceeded expectations. Growth was all-round. The decorative business clocked 106/96% volume/value growth, underpinned by strong pent-up demand in paints and adjacencies and stronger pick-up in metros/tier 1/2 cities and projects & large institutional sales. Despite a meaningful revenue beat, EBITDA missed expectations as RM inflation dragged it down. Price hikes (3% in Q1/1% in Jul- 21) remain incommensurate vis-à-vis the steep RM inflation (21-25% in the past six months). Our FY23/24 EPS estimates largely remain unchanged. Maintain SELL with a DCF-based TP of Rs 2,460 per share, implying 54x Jun-23 P/E.
Dimensions Corp sees takers for niche business IPOs; bets on pharma, IT
Dimensions Corporate Finance Services expects huge demand in initial public offerings (IPOs) for niche businesses, Ajay Srivastava, CEO, told CNBC-TV18. Srivastava also said that investors can allocate some part of their portfolio for new-age businesses. “Zomato announced USD 1.25 billion; Swiggy came at USD 1.27 billion, which means the competitive intensity of these businesses is going to be very high, which means the margins are going to be limited. Therefore, if 5-10 percent of your portfolio is in economy stocks, you can live with it and you need to balance some of these with overseas holdings provided government allows you to have larger holding of such global stocks. So that you have a balance of India and global-focused stocks rather than just being India-focused which is very expensive,” he said. Read here.
EaseMyTrip ties up with Cult.fit; says collaborations to drive growth
The Easy Trip Planners’ stock has seen around 101.49 percent move in the last six months alone. The stock is currently trading at Rs 419.50 on the NSE. The company has recently announced a collaboration with Cult.fit. Talking about the business, Prashant Pitti, Co-Founder & Director, Easemytrip.com said, “The company has launched a new feature by which if you book domestic air tickets on our website and you opt for free medical coverage and later on if you do cancel and provide medical prescription by any MBBS doctor that you were unfit to travel on that particular day, we will refund you the entire amount even the amount which the airline deducted. This offering, we have brought on the table three-four days ago, and it has received phenomenal response.” On their tie-up with the fitness company, he said since our marketing budget is quite low compared to the industry leader, we have grown primarily by tie-ups with various online and offline companies. Cult.fit is one such example, so far, we have had multiple collaborations, which have happened throughout the month. Read here.
SVP Global Ventures posts Rs 39 cr profit in June quarter; income from operations jumps to Rs 385 cr
Cotton yarn maker SVP Global Ventures has reported a consolidated net profit of Rs 39.18 crore for the quarter ended June. The company had posted a net loss of Rs 57.44 crore in the year-ago period. Income from operations rose to Rs 384.79 crore in the first quarter of this fiscal, from Rs 91.82 crore in the corresponding period of the previous year, according to a regulatory filing. "The company has been on a growth trajectory over the quarter and the current financial performance has shown steady growth," SVP group CEO O P Gulia said in a statement.
Bharti Airtel launches new corporate & retail postpaid plans
Bharti Airtel has launched new corporate and retail postpaid plans. The company has discontinued 749 family postpaid plans for new customers and launched Rs 999 as the only family postpaid plan with enhanced data benefits. The stock is up 3 percent at Rs 544.10.
Crypto prices surge after Elon Musk says 'I might pump, but I don't dump'
Tesla and SpaceX chief executive officer Elon Musk set the prices of cryptocurrencies like Bitcoin, Ether, and Dogecoin soaring as he revealed he has not been selling his crypto holdings despite the volatility. "If the price of Bitcoin goes down, I lose money. I might pump, but I don't dump... Outside of Tesla and SpaceX stock, it's my largest holding," Musk said on July 21 at “The B Word", a Bitcoin event. He added that he does not believe in getting the price high and selling and that he would like to see Bitcoin succeed. Musk also revealed that he owns "far more" Bitcoin than Dogecoin or Ether. At 14:10, Bitcoin was trading 4.5 percent higher at $32,192 and Ether was trading nearly 8 percent higher at $2,013.
HUL's CMD Sanjiv Mehta remains cautiously optimistic about the demand recovery
UltraTech Cements' consolidated Q1 net profit comes in at Rs 1,700 cr Vs CNBC-TV18 poll of Rs 1,428 cr
Asian Paints Q1 results: Shares fall 1%. Should you buy, sell or hold?
The share price of Asian Paints fell nearly 1 percent in opening trade on Thursday after the company reported its Q1 earnings with the net profit coming in below market expectations. The profit doubled to Rs 219.6 crore, as compared to a year ago. However, it was below the CNBC-TV18 poll estimate of Rs 721 crore. The profit saw a steep jump YoY owing to the low base of last year. The company's revenue jumped 91.1 percent YoY to Rs 5,585.4 crore in the first quarter of FY22. The revenue was slightly above the CNBC-TV18 poll estimate of Rs 5,550 crore. Here's what brokerages have to say on Asian Paints' stock and Q1 earnings .. read more.