Stock Market Highlights: Indian equity benchmarks ended a choppy session on Thursday mildly higher. Gains in consumer goods and metal shares were offset by losses in select financial stocks. Broader markets outperformed the headline indices, with the Nifty Midcap 100 and Smallcap 100 gauges rising 0.3 percent and 0.6 percent respectively. The Indian market will remain shut on Friday, September 10 for Ganesh Chaturthi holiday.
Thank you, readers! That's all from CNBC-TV18.com's live market coverage on September 9. Stay tuned for other updates on our website: CNBC-TV18.com.
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Signs of bounce in coming sessions: HDFC Securities' Nagaraj Shetti
"A sustainable upside recovery was seen towards the second half of the day... A reasonable positive candle was formed on the daily chart, indicating a continuation of rangebound action in the market. There was no sharp weakness on the day of weekly F&O expiry, and sustainable buying emerged towards the end of the session. This signals chances of a bounce in the coming sessions," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Market This Week | Broader markets showed resilience, says Vinod Nair
"Indian indices failed to maintain the momentum witnessed in the previous week as volatility remained high due to weakness in global markets and the absence of any fresh domestic cues," said Vinod Nair, Head of Research at Geojit Financial Services.
"However, broader markets showed resilience and outperformed the benchmark. Though the much-awaited US job data fell short of market estimates, it gave relief to the market on hopes of continued economic support by the Fed. European shares traded with cuts ahead of the European Central Bank’s policy meeting where talks regarding the tapering of asset purchase program are likely to take place in the backdrop of rising eurozone inflation. Increasing covid cases across the globe also added to the market worries," he said.
Market rally driven by liquidity; outflows remain muted: Axis AMC
“Right now, the market is running essentially on liquidity,” said Chandresh Kumar Nigam, MD and CEO of Axis AMC. He advises sticking to asset allocation.
“There is no reason we can justify valuation or prices just on the basis of fundamentals, we are far beyond that. It is a liquidity-driven rally but I think it has got some more legs to run,” he told CNBC-TV18. (Read more here)
Rupee seen rangebound between 73.20 and 74 next week: Anindya Banerjee
"The first half of the day saw the spot rupee touch a high of 73.85 before settling lower at 73.50 against the dollar. A risk-off sentiment in Asian equities pushed the rupee agaisnt the dollar," said Anindya Banerjee, DVP, Currency Derivatives and Interest Rate Derivatives at Kotak Securities.
"Selling by exporters and FPI inflows capped the advance. Over the next week, we expect the rupee to operate within a range of 73.20 and 74.00 levels (spot)," he said.
Key support for Nifty50 at 17,250-17,200, medium-term trend still positive: Shrikant Chouhan
"Due to a lack of follow-through buying interest, Nifty consolidated in the 17,250-17,450 range. On weekly charts, the market has maintained a breakout continuation formation but on intraday charts formed a double top pattern, which suggests temporary weakness," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
"While the medium-term trend is still positive, traders may prefer to book profits near resistance levels due to an overstretched rally. For the bulls, 17,250 and 17,200 would be key support levels. Above these levels, the uptrend formation is likely to continue up to 17,450-17,650 levels. On the flipside, a dismissal of 17,200 may fuel further weakness up to 17,100-17,000 levels. Positional traders can take a contra bet near the support level of 17,000 with a strict stop loss at 16,930," he said.
Crucial for Nifty50 to sustain 17,200-17,250 support zone: Ashis Biswas of CapitalVia
It will be crucial for the Nifty50 index to sustain above the 17,200-17,250 support zone in the short term, said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.
"If the index is able to sustain the 17,200-17,250 levels, it can witness higher levels of 17,500. Technical indicator suggests a volatile movement in the market in a small range between 17,200 and 17,500," he said.
Rupee ends stronger at 73.50 vs dollar
Rupee ends stronger at 73.50 against the US dollar as against its previous close of 73.60.
Market This Week | Nifty Bank snaps two-week gaining streak; Axis Bank top loser
Midcap, smallcap stock continue to attract buyers: Vinod Nair
"Domestic markets were highly volatile amid negative cues from global peers. Selling was seen in realty and pharma stocks. However, mid- and small-cap stocks continued to attract buyers, leading to the outperformance of broader markets. The Regulatory crackdown in China, global concerns over the looming reduction in asset purchases ahead of the European Central Bank meeting, and the slowdown in economic recovery pulled global markets lower," said Vinod Nair, Head of Research at Geojit Financial Services.
Some sort of bounceback expected in metals; not so bullish: Ambareesh Baliga
Market expert Ambareesh Baliga said some sort of a bounceback can be expected in metals after the correction in the recent past. He is "not so bullish" on metals at the current juncture. "I think more or less the best of the results will be possibly Q2 numbers and after that, we could start to see some sort of a dip. So there could be possibly some more upside which should be used for trading. Surely at this point of time, one should not look at a fresh investment in metal stocks. It is more of a trading bet," he told CNBC-TV18.
Reliance, HDFC Bank drag market; Bharti Airtel, metal stocks lend support
Market At Close | Here are key highlights of today's session
Closing Bell | Sensex ends 55 points higher, Nifty at 17,369
The S&P BSE Sensex index ended 54.8 points or 0.1 percent higher at 58,305 and the broader NSE Nifty 50 benchmark settled at 17,369, up 15.8 points from its previous close. Metal, fast moving consumer goods and media stocks were in high demand. On the other hand, real estate and select pharma stocks saw selling pressure. Banking and financial services indices gave up initial gains to end with cuts of 0.2-0.3 percent. (Read more here)
Slight risk-off mood in global markets has impacted India too: VK Vijayakumar
"There is s slight risk-off mood in global markets for the past few days which has impacted bullish sentiments in India too," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Many experts feel that there can be a correction in the large caps that have been leading the rally this year. So part of the fresh money is now moving into new areas like PSU banks. But this is likely to be a short-term trend."
LIC Housing Finance approves allotment of 4.5 crore shares to LIC
The shares will be allotted to the insurance behemoth on a preferential basis at Rs 514.4 apiece. LIC Housing Finance shares traded 0.7 percent higher at Rs 421.4 apiece on BSE in late afternoon deals.
Kotak Mahindra Bank cuts home loan rates, effective Friday; shares edge higher
Kotak Mahindra Bank announced a reduction in home loan rates by 15 basis points, effective September 10. After the latest revision, the lender's home loan rates will start from 6.5 percent.
The lender has said it is seeing a dramatic shift in the housing industry during the pandemic. Attractive lending rates are important to acquire new customers, Kotak Bank said.
Kotak Mahindra Bank shares traded with a gain of 0.1 percent at Rs 1,820 apiece on BSE, having risen as much as 1.3 percent earlier in the day. The 30-scrip Sensex benchmark was flat amid choppy trade.
Retail brokers okay with T+1 system implementation: HDFC Securities' Ashish Rathi
Retail brokers are okay with the Sebi announcement on a 'T+1' system, as, more or less, the processes are now geared up for such settlements, said Ashish Rathi, Whole-Time Director at HDFC Securities. "Shares pay-in happen on the same day. Upfront margining is also compulsory for all trades. However, the concern is from a perspective of the entire ecosystem. For T+1 to be successful, the depositories, exchanges, clearing corporations, brokers/clearing members and banking systems have to function in a seamless manner," Rathi said.
"Any disruption or impact on these will affect settlements since the time period will be shortened. Systems and the infrastructure of the entire ecosystem have to be geared up to perform consistently since its not one off event," he said.
On Tuesday, market regulator Sebi introduced a 'T+1' settlement cycle for completion of share transactions on an optional basis. The move is aimed at enhancing market liquidity. Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done -- also known as a 'T+2' system of settlement. The regulator decided to provide flexibility to stock exchanges to offer either T+1 or T+2 settlement cycle for the completion of share transactions.
Buy Ramco Cement, MCX, PVR: Hemen Kapadia
Here are three trading calls from Hemen Kapadia of KRChoksey Securities:
Care Ratings revises Gujarat Gas outlook to 'positive' from 'stable'
Care Ratings affirmed its rating of 'AA+' on Gujarat Gas's bank facilities worth Rs 2,000 crore, and revised its outlook to 'positive' from 'stable'.
Gujarat Gas shares traded 0.7 percent lower at Rs 684 apiece on BSE, underperforming the benchmark Sensex index, which was flat.
View: Will RBI’s juggling activity keep rupee volatility in check?
Every importer and exporter should definitely keep the RBI’s tagline in mind: “Jaankar baniye, satark rahiye”. It promotes awareness just against any fraudulent activity but also any uncertain movement in the forex market. (Read more here)
Future Retail Case | Supreme Court stays all proceedings for attachment pending before Delhi High Court
The Supreme Court stayed all proceedings for attachment pending before the Delhi High Court on Thursday, giving relief to Future Group. The court also issued notice on a plea by Future Group against Delhi High Court's order of attachment. The top court said it is trying to balance the interests of all stakeholders. It also directed capital market regulator Sebi and fair trade regulator CCI to not pass final orders on approval on the deal for four weeks.
In March 2021, the Delhi High Court had directed for attachment of assets of Future Retail and Future Coupons.
Future Retail shares traded 8.8 percent higher at Rs 50 apiece on BSE. Future Consumer was up 8.5 percent at Rs 7.66. (Read more on the Future Retail case here)
Jio-bp JV partners with BluSmart to set up EV charging infra in India
Jio-bp, a joint venture between Reliance Industries and bp, announced a partnership with BluSmart, an all-electric ride-hailing platform, to set up a network of commercial large scale EV charging stations. As part of the partnership, Jio-bp will set up these stations for passenger electric vehicles and fleets across the country, a regulatory filing said. Both companies will collaborate in the planning, development and operation of the EV charging infrastructure at suitable locations across cities where BluSmart operates.
Reliance Industries shares traded half a percent loser at Rs 2,419 apiece on BSE, underperforming the headline Sensex index, which was down 0.19 percent.
Raw material inflation has not eased as expected, discretionary demand up: Godrej Consumer Products
Sunil Kataria of Godrej Consumer Products told CNBC-TV18 inflation in raw material hasn’t cooled off as expected, though discretionary demand has picked up. A V-shaped recovery continues in discretionary categories, and the company expects double-digit growth across categories, he said.
He also said the company aims ot hold its India EBITDA margins around 25-26 percent.
Godrej Consumer shares traded down 0.4 percent at Rs 1,105 apiece on BSE in afternoon deals, underperforming the S&P BSE Sensex index, which was up 0.67 percent.
IGL sees more room for price hikes in CNG segment
AK Jana of IGL believes there is more room for price hikes in the CNG segment. There is conversion of around 14,000-15,000 vehicles to CNG every month in Delhi, where the company is planning a total of 50 CNG stations, he told CNBC-TV18.
Buy Kotak Mahindra Bank, HDFC AMC: Jay Thakkar
Here are two trading calls from Jay Thakkar of Marwadi Shares & Finance:
Macrotech (Lodha) ties up with Tata Power for EV charging infra
As part of the agreement, Tata Power will install EV charging stations at Macrotech's developments in the Pune and MMR areas.
Macrotech Developers shares were down 1.4 percent at Rs 1,036.5 apiece on BSE. Tata Power was down 0.6 percent at Rs 132.4.
Buy Exide, ITC: Mitessh Thakkar
Here are two trading calls from Mitessh Thakkar of earningwaves.com:
MF participation to increase: A Balasubramanian of Aditya Birla Sun Life AMC
AMFI's data for the month of August is out. Equity schemes have seen net inflows of Rs 8,057 crore -- down more than 60 percent on a month-on-month basis. A Balasubramanian, managing director and CEO at Aditya Birla Sun Life AMC, believes more and more investors will participate in the capital market through MFs. (Read more on MFs here)