S Ranganathan, Head of Research at LKP securities
Indices remained rangebound in trade today after a stellar run in the index stocks during the past few weeks, making India one of the best-performing markets globally last month.
Action, however, was seen in select small & midcap names as consolidation in several sectors has benefited select companies who have used the pandemic to gain share.
Market participants were picking quality stocks as valuations are pricey with several stocks trading at 3.5 times price-to-book.
Closing updates
: Market benchmarks the Sensex and the Nifty ended lower on September 13 with shares of Reliance Industries, ICICI Bank, Hindustan Unilever, HDFC Bank and Mahindra & Mahindra as the top laggards in the Sensex kitty of stocks.
On the other hand, Kotak Mahindra Bank, Tata Steel, TCS, Bajaj Finserv and Maruti Suzuki emerged as the top Sensex gainers.
Sensex closed 127 points, or 0.22 percent, lower at 58,177.76 while the Nifty ended the day at 17,355.30, down 14 points, or 0.08 percent.
Mid and smallcap stocks outperformed their frontline peers as their sectoral indices ended in the green for the third consecutive session.
The BSE Midcap index closed 0.32 percent higher while the smallcap index settled with a gain of 0.80 percent.
BSE Smallcap index is up about a percent.
More than 350 stocks hit their upper circuits:
Even though the market traded in the red, more than 350 stocks hit their upper circuits in intraday trade on BSE so far.
Among the stocks that hit their upper circuits were Somany Home Innovation, Borosil Renewables, IIFL Finance, Reliance Power and Hindustan Construction Company.
Nearly 250 stocks hit fresh 52-week highs:
Nearly 250 stocks, including Bharti Airtel, HCL Tech, Hindalco, Havells India, Dish TV India, APL Apollo Tubes, L&T Technology Services, Mindtree, Persistent Systems, Nalco, Voltas, Tata Elxsi, Zydus Wellness, hit their 52-week highs in intraday trade on BSE.
Nifty IT climbs more than a percent
European markets are trading in the green with FTSE, CAC and DAX up half a percent each
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 0.76% up to $70.25 per barrel for the day. MCX Crude oil September futures were trading 0.88% higher near Rs 5,172 per barrel by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $72 and support at $69 per barrel. MCX Crude oil September has support at Rs 5,080 and resistance at Rs 5,270.
Aurionpro Solutions announces significant win in the Smart City segment, wins order from M.P Police Radio
Aurionpro Solutions announced significant order win in the smart city segment from M.P Police Radio, the department of Madhya Pradesh Police valued more than Rs 38 crores, to be served over three years. It covers comprehensive annual operation and maintenance of integrated city surveillance systems for the eleven cities of Madhya Pradesh, the company said in an exchange filing. The stock was trading at Rs 201.25, up Rs 1.20, or 0.60 percent. It has touched an intraday high of Rs 210 and an intraday low of Rs 199.45.
Telecom Department may approve proposals w.r.t telecom equipment PLI this week
The telecom department may approve proposals w.r.t telecom equipment PLI this week. Telecom equipment PLI proposals worth Rs 3,245 crore may be approved this week. Cabinet Secretary had asked DoT for the reason of delays in approval last week, sources to CNBC-TV18 said.
Market update at 2 PM: Sensex is down 55.50 points or 0.10% at 58249.57, and the Nifty shed 2.50 points or 0.01% at 17366.80.
Emkay Global on OIL India Limited
We consolidate Numaligarh Refinery into Oil India with a revised Sep'22E SOTP target of Rs 255 (previously Rs165 for Mar'22E). OIL's core outlook is positive with crude at USD 70+ and gas prices on an uptick. We do not build in any output growth despite management's optimism. Although we believe NRL's acquisition should have been 100% with the Assam govt allotted OIL's share instead, the effective 69.6% stake is also material. OIL stands to benefit from NRL's massive excise duty-driven earnings and its ongoing 3x capacity expansion.
We bake in USD 65 Brent/4.5 APM for the long term and value S/A using DCF now. OIL should receive Rs 13-15 billion in annual dividends from NRL and IOCL in the next 5 years; these, if up-streamed, could result in a 45%+ payout and a 7% yield at CMP. We upgrade the stock to buy from hold.
MTAR Technologies bags order worth Rs 220 crore from Bloom Energy, US:
MTAR Technologies has received an export order for USD 29.82 million (approximately Rs 220 crore) from Bloom Energy, USA. This order is for export of Yuma Hot Boxes and associated components for Bloom Energy to be delivered over the four quarters of the calendar year 2022. This is the largest single order ever received by MTAR, the company said. The stock was trading at Rs 1,402.60, up Rs 31.70, or 2.31 percent. It has touched an intraday high of Rs 1,429.55 and an intraday low of Rs 1,360.65.
SpiceJet settles with Boeing 737 Max lessor CDB Aviation
: SpiceJet said on Monday it has entered into a settlement with CDB Aviation, a major lessor of Boeing 737 Max aircraft. The airline had stated on August 26 that it has agreed to a settlement with Avolon, another major lessor of this aircraft. In a statement on Monday, the budget carrier said that it expects to start operations of Max aircraft around the end of September 2021, subject to regulatory approvals. The stock was trading at Rs 70.05, up Rs 0.40, or 0.57 percent. It has touched an intraday high of Rs 71.05 and an intraday low of Rs 69.60.
Market update at 1 PM: Sensex is down 64.22 points or 0.11% at 58240.85, and the Nifty down 9.10 points or 0.05% at 17360.20.
Granules India recalls one batch of Naproxen Sodium Tablets due to CGMP deviation
: Granules India announced that Granules USA, Inc., a wholly-owned foreign subsidiary of the company located in New Jersey, is voluntarily recalling one batch of Naproxen Sodium 220mg tablets at a retail level due to a minor
“CGMP deviation”. One batch has 11.4 million units of Naproxen tablets out of which 0.9 million units that were released, the company said in an exchange filing. The stock was trading at Rs 325.70, down Rs 2.55, or 0.78 percent. It has touched an intraday high of Rs 328.25 and an intraday low of Rs 321.75.
Advanced Enzyme stock jumps 12%
Advanced Enzyme Technologies share price jumped over 12 percent intraday on September 13 after the company claimed that its nutraceutical supplement helped long COVID pateints recover faster.
Advanced Enzymes on September 13 announced clinical trial data demonstrating that the use of its nutraceutical supplement helped patients suffering from post‐COVID fatigue symptoms or long COVID to recover much faster.
Gaurav Garg, Head of Research CapitalVia Global Research
: The Indian benchmark started with a flat opening with negative bias in the market. Asian markets made a sluggish start packed with major US and Chinese economic data. Traders will get concerned with the rise in unemployment rate, periodically published by National Statistical Office (NSO). Investors will remain cautious about the key inflation data due later in the day. Sentiments may get optimism as RBI Governor said many fast indicators are showing an uptick in economic activity and the Reserve Bank is quite optimistic about its 9.5 percent GDP growth estimate for FY 21-22 at present. Our research suggests 16,200 will be an important support level in the market for the market to remain positive in the short term.
Goldiam International approves share buyback
The Board of Directors of Goldiam International at its meeting held on September 13, 2021 approved a proposal to buyback up to 3,80,000 equity shares of the company for an aggregate amount not exceeding Rs 45 crore and 60 lakh, being 01.71 % of the total paid-up equity share capital and 19.35% of the total paid-up equity share capital at a price of Rs 1,200 per equity share.
Market update at 12 PM: Sensex is down 187.65 points or 0.32% at 58117.42, and the Nifty shed 45.10 points or 0.26% at 17324.20.
TCS in strategic partnership with Dutch company NXP Semiconductors for IT innovation
Tata Consultancy Services (TCS) will help NXP, enrich its user experience and accelerate digital transformation. NXP is driving innovation in the automotive, industrial & IoT, mobile, and communication infrastructure markets. The semiconductor manufacturer selected TCS as its strategic partner to drive its integrated IT services strategy across applications, IT infrastructure and workplace services spanning enterprise, manufacturing and engineering functions. The stock was trading at Rs 3,841.35, up Rs 49.60, or 1.31 percent. It has touched an intraday high of Rs 3,849.30 and an intraday low of Rs 3,761.
MAS Financial Services partners with CredAvenue for Co-Lending Platform:
MAS Financial Services, specialized in MSME financing, announced today that it has partnered with CredAvenue for their co-lending platform.
MAS Financial Services intends to utilize the platform for partnering with multiple originators and also plans to utilize the full-stack discovery, credit, operations, and risk management modules available on CredAvenue’s co-Lending platform.
These stocks jumped up to 20 percent on BSE:
Shares of Raj Oil Mills, Suryoday Small Finance Bank, DRA Consultants, Yasho Industries, Borosil, Cantabil Retail India, Unishire Urban Infra, KMC Speciality Hospitals, Prakash Woollen & Synthetic Mills, Apcotex Industries, Advanced Enzyme Technologies, Apollo Micro Systems, Wendt India, Sacheta Metals, Lime Chemicals, Shivalik Bimetal Controls, Expo Gas Containers, Misquita Engineering and Trekkingtoes.com jumped up to 20 percent in morning trade on BSE.
Monsoon tracker: Rahul Bajoria, Chief India Economist, Barclays India
Monsoon rainfall increased over the past fortnight, with precipitation in September 53 percent above normal so far. That has helped reduce the cumulative rainfall deficit between 1 June and 12 September to 6 percent of the long-period average (LPA: 1961-2010). The surge in rainfall in September follows below-normal precipitation in both July(- 6.7 percent) and August (-24 percent).
Regional distribution of the monsoon improved over the past fortnight, with 28 subdivisions having received normal or above-normal rainfall this season, while 8 have received deficient rainfall. Reservoirs trail prior-year levels, which could have some effect on farm output in coming months.
Market update at 11 AM
: Sensex is down 215.02 points or 0.37% at 58090.05, and the Nifty shed 54.60 points or 0.31% at 17314.70. BHarti Airtel and Coal India are the top gainers while Reliance Industries, ICICI Bank and Eicher Motors are the top losers.
Among the sectors, banks and oil & gas sectors are under pressure while the smallcap index is trading in the green.
Kalrock-Jalan Consortium on Jet Airways
Jet Airways to start domestic operations in Q1CY22. Process of revival on track with existing air operator certificate. Working closely with authorities on slot allocation, required airport infrastructure, night parking. Plan to have 50+ aircraft in 3 years, 100+ in 5 years. Revival plan for Jet being implemented as approved by NCLT. All creditors' dues to be settled as per plan in coming months. The stock was trading at Rs 83.50, up Rs 3.95, or 4.97 percent. It has touched an intraday high of Rs 83.50 and an intraday low of Rs 78.60. There were pending buy orders of 36,655 shares, with no sellers available.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
: The markets opened on a soft note this morning. This does not come as a surprise considering the sharp run up with no correction. The support for the Nifty is currently at 17,250 and as long as that holds, traders can consider a buy on dips approach for a target of 17,450. There is every possibility the Nifty also becomes sideways and trades within this range of 17,250-17,450.
The banking index is under pressure as the index shed half a percent dragged by ICICI Bank, Kotak Mahindra Bank and HDFC Bank
Infosys signs multi-year strategic agreement
Infosys have entered into a multi-year strategic engagement with Ausgrid, the largest distributor of electricity on Australia’s east coast, to accelerate its cloud transformation journey and establish Ausgrid as a leading digital utility. The stock was trading at Rs 1,687.15, down Rs 4.65, or 0.27 percent. It has touched an intraday high of Rs 1,689.25 and an intraday low of Rs 1,675.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
: There are mixed signals for the markets at the start of the week. On the positive side, both FIIs and DIIs were bought last Thursday and the futures market also indicates FIIs going long. However, news from the US and Europe indicate a slowing down of the economy impacted by continuing restrictions on economic activity triggered by the new waves of the pandemic. Developed markets have turned slightly weak on these negative developments.
The Mid-cap Index has staged a comeback this month outperforming the Nifty. But investors should refrain from jumping into the broader market since risk in the segment is on the higher side.
Zomato shares in focus as company’s ‘clean-up’ drive continues
Zomato stock price is in focus as the company has decided to has pulled the plug on another business – Nutraceutical. The company has decided to shut it at a time when the government is trying to get stricter about private label norms for marketplace businesses in the country.
Global research firm Credit Suisse has initiated with an outperform rating on the stock with target at Rs 185 per share, an upside of 30 percent from current market price. The brokerage firm values food delivery business at 3.2x EV/GMV, 100% premium to DoorDash. However, it feels that worsening of unit economics is a key risk.
COVID-19 India update
India adds less than 30,000 cases for the second straight day, up 27,254 in the last 24 hours. Active cases fall by 10,652 while recoveries rise by 37,687 and deaths by 219. Positivity rate back above 2%, at 2.26%. Recovery rate is at 97.54% and mortality rate is at 1.33%. Single-day testing at 12.08 lakh and vaccinations at 53.39 lakh. 7-day average for vaccinations rise to 76.80 lakh. Total cases at 3.32 crore, active 3.74 lakh, recoveries 3.24 crore and deaths at 4.43 lakh.
Rupee opens
Rupee opens at 73.60 per US dollar against September 9 close of 73.50 per US dollar
SREI’s Rs 35,000-crore loan may be classified as NPA: Report
Banks may classify Rs 35,000 crore loan given to SREI group as Non Performing Asset (NPA) by the end of this quarter ending in September after the National Company Law Tribunal (NCLT) set aside the previous order restraining banks from such classification. “We were expecting SREI to be classified as NPA and, hence, had already started setting aside provisions," a top banker at a large public sector bank told Mint.
According to the report, public sector Indian Bank and Canara Bank have exposures of Rs 2,000 crore and Rs 1,200 crore, respectively, while private sector ICICI Bank and Axis Bank have Rs 800 crore each to SREI Group.
Buzzing stock
Bharti Airtel share price traded in the green after global research firm CLSA retained buy rating on the stock. The global research firm has maintained its buy call on the stock and raised target to Rs 825 per share. "The telecom firm had an 18x jump in data usage. ARPU is up 46% from lows and expect it to rise to Rs 199," the brokerage firm said, according to a CNBC-TV18 report.
Market at open: Sensex is down 203.54 points or 0.35% at 58101.53, and the Nifty shed 41 points or 0.24% at 17328.30.
Buzzing Stocks: RIL, SBI Life Insurance, Zomato and other stocks in news today
July IIP sees slower YoY growth at 11.5% as low base effect wears off
As the low base effect slowly wears off, industrial production in India expanded by 11.5 percent year-on-year (YoY) in July, down from 13.6 percent in June.
Measured by the Index of Industrial Production (IIP), data which was released by the Centre on September 10, industrial output has maintained significant growth from March, 2021, aided by a continuing low base effect. Case in point, industrial production rose by 28.6 percent in May and a massive 134 percent rise in April.
Top 10 things to know before the market opens
The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a cautious opening for the index in India
Oil prices edge higher
Oil prices climbed on Monday to a one-week high in a second straight session of gains as concerns over US supplies following damage from Hurricane Ida supported the market, along with expectations for higher demand.
Brent crude rose 48 cents, or 0.7% to $73.40 a barrel, and US West Texas Intermediate (WTI) crude also added 49 cents, or 0.7%, to $70.21 a barrel. Both markets were at their highest since Sept. 3 earlier in the session.
US Markets
: Wall Street ended sharply lower on Friday as investors weighed signs of higher inflation, while Apple Inc tumbled following an unfavorable court ruling related to its app store.
The Dow Jones Industrial Average fell 0.78% to close at 34,607.72 points, while the S&P 500 lost 0.77% to 4,458.58. The Nasdaq Composite dropped 0.87% to 15,115.49.
Asian Markets
Asian shares made a guarded start on Monday to a week packed with important U.S. and Chinese economic data and the launch of Apple’s latest iPhones, while the Nikkei was tantalisingly near heights last visited in 1990.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1%, after bouncing on Friday. Japanese shares have been on a tear as hopes for fresh stimulus from a new Prime Minister saw the Nikkei surge 4.3% last week. The Topix has already scaled that peak, while the Nikkei turned hesitant early on Monday.
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