Vinod Nair, Head of Research, Geojit Financial Services
Domestic indices wiped out early gains to close flat, tracking mixed global cues. Meanwhile, energy crisis and upcoming ECB interest rate decision pressurized European markets. Chinese policymakers’ renewed efforts to strengthen economy boded well for the Chinese bourses. In an effort to stabilize declining oil prices, OPEC+ opted to cut back on the output given the faltering global growth outlook.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty failed to capitalize on early gains as profit-taking took place around 17,750. On the lower end, 17,600 acted as support for the index. The trend remains sideways as Nifty failed to provide any directional breakout. Resistance seen at 17,770; whereas, support is visible at 17,580/17,468.
Demat accounts cross 100-million mark for first time in India
According to data released by depository firms National Securities Depository Limited (NDSL) and Central Depository Services (CDSL), over 2.2 million new accounts were opened last month, bringing the cumulative figure to 100.5 million.
“This shows that the culture in equity investing is slowly but steadily picking up in India, especially in tier 2 and tier 3 cities, which were underserved till now. Higher participation of investors bodes well for the depth and development of equity markets in India, along with the availability of equity capital to companies through primary issuances,” said B Gopkumar, MD & CEO, Axis Securities.
Market at close
: Benchmark indices ended the session on September 6 on a flat note amid volatility. Sensex was down 48.99 points or 0.08% at 59196.99, and the Nifty shed 10.20 points or 0.06% at 17655.60. About 1745 shares have advanced, 1614 shares declined, and 133 shares are unchanged.
Among the sectors, buying was seen in oil & gas, power and metal names while financials, FMCG and IT indices ended in the red. The midcap index added half a percent.
Tamilnad Mercantile Bank IPO updates
The maiden public issue of Tamilnad Mercantile Bank continued to see good participation on September 6, the second day of subscription. The offer received bids for 1.05 crore shares against IPO size of 87.12 lakh shares, getting subscribed 1.22 times.
Retail investors remained ahead in terms of subscription, booking their quota 2.94 times, while non-institutional investors bought 1.05 times of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 73 percent.
KNR Construction Large Trade | 14.3 lakh shares (0.4% equity) worth Rs 36.31 cr change hands at Rs 254 per share
Vinod Nair, Head of Research, Geojit Financial Services on tyre stocks
The sector was trailing under pressure due to subdued demand in the auto sector and high input costs. However, situation is likely to improve going forward due to asteep fall in crude prices and easing of semi-conductor issue at OEM level.
Apollo Tyres holds 31% domestic market share in TBR tyres. To offset the margin pressure, the company took 8% price hike in Q1FY23 and a further 3-4% hike is expected in the ongoing quarter. As a result, the company registered an earnings growth of 68% QoQ. Cyclical upswing in CV industry, high radicalization levels, an uptick in PV space and network expansion to be major top-line drivers for the company in a medium to long-term basis. In addition, benign commodity prices along with operational efficiency will result in margin expansion in FY24.
Market update at 3 PM: Sensex is down 40.57 points or 0.07% at 59205.41, and the Nifty shed 11.30 points or 0.06% at 17654.50.
RITES bags order worth Rs 92.7 cr from Gujarat Metro Rail Corporation
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
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Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were up by 1.27% near $87.97 per barrel on Tuesday. Crude Oil prices as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices. The move was seen as a largely symbolic move to bolster prices after the market's recent slide. Oil prices are down substantially from 14-year highs hit earlier in the year, as concerns over slowing crude demand offset supply shocks from the Russia-Ukraine conflict.
We expect crude oil prices to trade sideways to up with resistance at $90 per barrel with support at $86 per barrel. MCX Crude oil September contract has important support at Rs 6950 and resistance at Rs 7180 per barrel.
European Markets Updates
IRCTC CMD Rajni Hasija gets tenure extension
In an exchange filing, IRCTC informed: Rajni Hasija, Director (T&M), IRCTC will continue to hold the additional charge of the post of the CMD, IRCTC, in addition to her own, for a further period of 6 months (w.e.f August 01, 2022) or till the regularly selected incumbent joins the post or until further orders, whichever is the earliest.
Way2Wealth Research on Metro Brands
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Metro Brands is one of the largest Indian footwear & accessories specialty retailers and are among the aspirational Indian brands in the footwear category. Due to operational excellence, the company can provide a great platform to brands with an online and offline presence and a pan-India distribution. Demand is back across categories and continues its growth momentum; formals are back as people return to the office. The company has already opened 20 stores in Q1FY23 and is on the runway to open about 200 stores by end of FY23.
We appreciate the competitive strengths of Metro brands, in terms of the product mix, pricing mix, distribution, third-party brands, etc. Considering all the above factors, Metro Brands is in a strong position to drive growth in the medium to longer term. At the current price of Rs 819, it is trading at ~67.6 times P/E to its EPS (TTM) of Rs 12.11. Strong margins, asset-light business model, operating efficiency, a high share of premium products, and the immense size of opportunity justify the premium valuations given to the stock. We recommend investors to buy the stock on dips.
Tamilnad Mercantile Bank IPO updates
The maiden public issue of Tamilnad Mercantile Bank continued to see good participation on September 6, the second day of subscription. The offer received bids for 96.89 lakh shares against IPO size of 87.12 lakh shares, getting subscribed 1.11 times.
Retail investors remained ahead in terms of subscription, booking their quota 2.65 times, while non-institutional investors bought 92 percent of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 73 percent.
Adani Power up 5%
Billionaire Gautam Adani plans to start exporting electricity from a coal-fired plant in eastern India to Bangladesh before the end of the year, helping to alleviate energy shortages in the South Asian nation. Adani Power will commission a 1.6 GW facility in Jharkhand state and a dedicated transmission line for the exports by December 16, Adani said in a Twitter post late on Monday after meeting Bangladesh’s Prime Minister Sheikh.
Market at 2 PM: Sensex is up 88.67 points or 0.15% at 59,334.65, and Nifty is up 26.50 points or 0.15% at 17,692.30
Metro Brands to send ‘discount voucher’ to its shareholders. Vouchers shall entitle each shareholder to a discount of 15% on the products
Pfizer announces special dividend of Rs 30 per share
Pfizer has declared an interim (special) dividend of Rs 30 per equity share of Rs 10 each (300%) for the financial year ending March 31, 2023. “This is in view of the gain on account of sale of Upjohn BusinesstoMylanPharmaceuticals” the company informed in an exchange notice. Record date: September 20, 2022
Suzlon gets 181 MW wind power project order from Sembcorp
In an exchange notice, Suzlon Group announced a new order win for the development of a 180.6 MW wind power project for Sembcorp’s renewables subsidiary Green Infra Wind Energy. The company will install 86 wind turbine generators. The project is located in Kanakagiribad, Bagalkot, Karnataka, and is expected to be commissioned in 2024.
Vaibhav Jewellers files draft IPO papers with Sebi to raise funds
The IPO consists of a fresh issue of Rs 210 crore and an offer for sale of upto 4.30 million shares by its existing promoter Grandhi Bharata Mallika Ratna Kumari (HUF)... Read More
Sunil Damania, Chief Investment Officer, MarketsMojo on rally in metals
What emerged as a big surprise is how the metal index was the best performing sector last month despite most metal prices almost at the same level as the last month, except for aluminium, which saw some upward price movement. The metal index did well due to some investors dabbling into bottom fishing.But it's difficult to say that the metal index could sustain this rally as several leading economies, such as China and the US, are facing a slowdown, which could impact metal demand. Moreover, while some supplies from Europe may get curtailed due to higher energy costs, it may not suffice to lift the metal price.
Prabhudas Lilladher’s Medium Term Technical Pick
BUY COAL INDIA | CMP: 232.7 | TARGET: 255 | STOP LOSS: 227
The stock is in strong up trend making higher lows and higher highs. Recently it entered correction. It fell down to channel support during correction. The price behaviour is showing evidences that correction might have concluded and larger up trend may resume.
Gold Outlook by Chirag Mehta, CIO & Ghazal Jain, Fund Manager- Alternative Investment, Quantum AMC
Headwinds like the strengthening US dollar, rising bond yields and tightening liquidity by central banks will no doubt put downward pressure on GOLD, but the precious metal will be supported by geopolitical tensions, risk aversion and overall commodity inflation, potentially cushioning portfolios from the equity market volatility.
Sensex is up 56.39 points or 0.10% at 59,302.37 and the Nifty has added 17.10 points or 0.10% at 17,682.90
Tamilnad
Mercantile Bank IPO updates: The maiden public issue ofTamilnadMercantile Bank continued to see good participation on September 6, the second day of subscription. The offer received bids for 92.09 lakh shares against IPO size of 87.12 lakh shares, getting subscribed 1.02 times. Retail investors remained ahead in terms of subscription, booking their quota 2.37 times, while non-institutional investors bought 84 percent of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 73 percent.Rahul Bajoria, MD & Chief India Economist, Barclays
:
We expect CPI inflation to remain broadly steady in August, as a seasonal rise in food prices is mostly offset by a moderation in core CPI. As inflation eases, we expect the MPC to opt for a calibrated approach to rate tightening. We estimate headline CPI inflation remained relatively steady at 6.7% YoY in August, as a sequential rise in food prices was mostly offset by a modest decline in core CPI. Within food, we are seeing a steady uptick in price of staples such as cereals and pulses, along with several other sub components showing small increases. These increases appear in contrast to the trend in imported prices, which, including cooking gas and kerosene, are set to decline, albeit modestly.
Broadly, the easing of price pressures continues, as food price increases appear somewhat seasonal, and we are seeing the moderation in imported price pressures as a key driver of the disinflation going ahead. Upside risks to inflation are emanating primarily from a weaker exchange rate, and any reversal in imported inflation.
Megh Mody - Commodities and Currencies Research Analyst, Prabhudas Lilladher on OPEC production cut
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OPEC and its allies led by Russia on Monday agreed a small oil production cut to bolster prices that have slid on fears of an economic slowdown. The oil producers will reduce output by 100,000 barrels per day (bpd), amounting to only 0.1% of global demand, for October and also agreed they could meet any time to adjust production before the next scheduled meeting on October 5. Prices will not be impacted as there will be minor upmove. This production cut can be a breather for process due to weak macro sentiment, renewed china lockdown, uncertainty over potential US- Iran deal.
Tamilnad Mercantile Bank IPO updates
The maiden public issue of Tamilnad Mercantile Bank continued to see good participation on September 6, the second day of subscription. The offer received bids for 89.26 lakh shares against IPO size of 87.12 lakh shares, getting subscribed 1.02 times.
Retail investors remained ahead in terms of subscription, booking their quota 2.2 times, while non-institutional investors bought 84 percent of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 73 percent.
DreamFolks Services Q1
Consolidated net profit at Rs 13.4 crore against loss of Rs 1.4 crore (YoY). Consolidated revenue at Rs 160.3 crore against Rs 24.5 crore (YoY). Consolidated EBITDA at Rs 19.2 crore against loss of Rs 1.1 crore (YoY). Consolidated EBITDA margin at 12%. The stock was trading atRs 476.60, up Rs 150.60, or 46.20 percent on BSE. It has touched an intraday high of Rs 550 and an intraday low of Rs 452.25.
Market update at 11 AM: Sensex is down 97.20 points or 0.16% at 59148.78, and the Nifty shed 27.70 points or 0.16% at 17638.10.
GAIL India trades ex-bonus
Blue Star bags orders worth Rs 390 crore from Bangalore Metro Rail Corporation
Aster opens its 200th pharmacy in India
Tamilnad Mercantile Bank IPO updates
The maiden public issue of Tamilnad Mercantile Bank continued to see good participation on September 6, the second day of subscription. The offer received bids for 86.12 lakh shares against IPO size of 87.12 lakh shares, getting subscribed 99 percent.
Retail investors remained ahead in terms of subscription, booking their quota 2.03 times, while non-institutional investors bought 82 percent of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 73 percent.
NDTV Large Trade | 3.3 lakh shares (0.5% equity) worth Rs 18.6 crore change hands at Rs 560 per share
DreamFolks Services debuts with 56% premium, opens at Rs 509
Airport service aggregator platform DreamFolks Services listed with a strong 56 percent gains on September 6, which was better than analysts' expectations and grey market premium of 30-40 percent. The stock opened at Rs 505 on the BSE, against issue price of Rs 326, and the opening tick on the NSE was Rs 508.70.
Healthy initial public offering (IPO) subscription, positive market conditions, leadership in airport lounge aggregation industry, and asset light business model boosted investor confidence. The Rs 562 crore IPO had received strong response from investors, getting subscribed 56.68 times during August 24-26. It was entirely an offer for sale by shareholders.
Kuwait’s Jazeera Airways has selected RateGain’s AirGain product to dynamically adjust prices with real-time, accurate, and high-quality airfare data
Market update at 10 AM: Sensex is up 32.02 points or 0.05% at 59278, and the Nifty added 8.50 points or 0.05% at 17674.30.
Gautam Adani commits to commissioning 1600MW power project & transmission line to Bangladesh by mid-Dec
India inflation rate likely rose to 6.9% in August: Deutsche Bank
Deutsche Bank estimates that India's consumer price index (CPI) firmed to 6.9% year-on-year in August, while core inflation likely stood at 6%.
"Key vegetables tend to shoot up during this period," said Kaushik Das, chief economist for India and South Asia at Deutsche Bank. Besides seasonality, Das highlighted that sowing of pulses has also fallen by 5% year-on-year.
"These could be potential risk factors, which could keep food inflation momentum high, consequently resulting in an elevated CPI closer to the 7% mark," he said.
The Reserve Bank of India will continue with rate hikes, likely delivering another 75 bps to 85 bps bump up in the rest of this financial year, Das said.
Paytm buzzing in trade on back of strong operational update
Number of loans disbursed by One97 Communications grew 246% y-o-yto 6 million loans in the two months ended August 2022, while the value of loans disbursed grew 484% y-o-yto Rs 4,517 cr.The total merchant GMV processed through the platform in the two months aggregated to Rs 2.10 lk cr, marking a y-o-y growth of 72%.
Syngene International large trade | 2.3 crore shares (5.7% equity) worth Rs 1,273 crore change hands at Rs 564 per share
Kalpataru Power Bags New Orders
Kalpataru Power Transmission Limited (KPTL) has secured new orders worth Rs 1,345 cr. Orders have been secured in India and overseas market in the T&D business. The company has also received orders for pipeline laying works and Metro Rail Electrification.
Anand James - Chief Market Strategist at Geojit Financial Services
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The approach to 17690 may see bears regrouping, but if the dips thereof sustains above 17640, a few more spurts of upsides could be seen. It may take a while to breach the 18000 barrier again, but the near term prospects of the same will stay alive as long as 17470-17400 region holds.
Market at open: Sensex is up 181.58 points or 0.31% at 59427.56, and the Nifty added 57 points or 0.32% at 17722.80.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The resilience of the domestic market even in the context of strong global headwinds is a bit surprising. Retail investor enthusiasm - directly and through SIPs in mutual funds - has supported the market successfully shielding it from the onslaught of sustained FPI selling from October 2021 through June 2022.
However, retail investors directly investing in the market should not commit the mistake of chasing low-grade cheap stocks. High quality large-caps will outperform when the market turns weak. Presently, the market is driven by momentum and bulls are in control. Bank Nifty is on the verge of a break-out and has fundamental support.