S Ranganathan, Head of Research at LKP securities
The day belonged to the Nifty Media index which has been underperforming other sectoral indices. The huge move today in ZEE Entertainment Enterprises fired up the media index as gains seen in other stocks looked pale in comparison. The broader markets witnessed profit-booking today in stocks that have seen a big run-up in recent times.
Vinod Nair, Head of Research at Geojit Financial Services
Despite a bullish opening, domestic indices closed flat with a positive bias amid mixed sentiment among global peers.
India’s retail inflation softened to 5.3 percent in August, staying within RBI’s comfort zone which was led by lower food inflation. However, the wholesale price inflation accelerated to 11.39 percent, snapping the two-month easing trend owing to non-food articles.
Global markets traded cautiously ahead of the US consumer price index to be released today.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed a small correction and attempted to hold 17,400 which suggests that 17,200-17,250 will be an important support zone for the market for the short term.
If the market is able to sustain above the level of 17,200-17,250, it can witness higher levels of 17,500. Technical indicators suggest a volatile movement in the market in a small range of 17,200-17,500.
Closing update:
The market ended with gains on September 14, supported by select heavyweights such as TCS, Kotak Mahindra Bank, Larsen & Toubro and HCL Tech.
Equity barometer the Sensex closed 69 points, or 0.12 percent, up at 58,247.09 while the Nifty finished with a gain of 25 points, or 0.14 percent, at 17,380.
Mid and smallcap indices hit their fresh record highs in intraday trade today. The BSE Midcap index closed 1.09 percent higher while the smallcap index ended with a gain of 0.63 percent.
Nifty Media index jumps more than 14 percent in intraday trade.
Sensex pared gains of the first half and traded with mild gains in the afternoon session.
The midcap index added a percent led by Zee Entertainment, Vodafone Idea and IRCTC
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 0.82% up to $71.03 per barrel for the day. MCX Crude oil September futures were trading 0.95% higher near Rs 5,230 per barrel by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $72 and support at $69.80 per barrel. MCX Crude oil September has support at Rs 5,160 and resistance at Rs 5,320.
European markets are trading weak with FTSE and CAC down in the red
Dish TV shares locked in upper circuit amid Yes Bank notice to rejig board
Direct to home service provider Dish TV India shares were locked in upper circuit on September 14, giving a massive return to investors in the month of September, amid the notice issued by Yes Bank, the shareholder in the company, to rejig board.
The bank, on September 4 in its special notice, asked the company to consider and pass the removal of Rashmi Aggarwal, Bhagwan Das Narang, Shankar Agganval, Jawahar Lal Goel, and Ashok Mathai Kurien as directors, at the 33rd Annual General Meeting of the company that scheduled to be held on September 27, 2021.
Market update
: Sensex is up 124.00 points or 0.21% at 58301.76, and the Nifty added 39 points or 0.22% at 17394.30. IndusInd Bank, HCL Tech and Hero MotoCorp are the top gainers while Zee Entertainment, IRCTC and Zomato are the most active stocks.
Credit Suisse on Gujarat Gas
: Downgrade to neutral from outperform, target raised to Rs 684 per share. Constructive on strong volume outlook. Downgrade the firm on EBITDA loss on incremental industrial volumes sourced on high spot gas prices.
Laurus Labs in agreement with Unitaid & CHAI for development of anti-HIV drug for children
The Company is pleased to announce that development is underway based on an agreement launched in June 2021 between·the Company, Unitaid and the Clinton Health Access Initiative (CHAI), to accelerate the development, commercialization, and registration of the best-in-class
second- and third-line HIV treatment darunavir boosted with ritonavir (DRV /r) for children, it said in an exchange filing. The stock was trading at Rs 653.90, up Rs 8.00, or 1.24 percent. It has touched an intraday high of Rs 666.00 and an intraday low of Rs 644.20.
CLSA On HDFC Life Insurance
The global research firm has maintained outperform rating with target at Rs 790 per share. The company says Exide Life’s acquisition will aid in quick scale-up of individual agents. Demand for life insurance following the second wave of COVID-19 has recovered well. Term life business will take more time to return to growth. Credit life has seen a healthy recovery aided by higher attachment rates. We believe Exide Life was an expensive acquisition. SBI Life is our top insurance pick.
Market update at 1 PM: Sensex is up 107.86 points or 0.19% at 58285.62, and the Nifty added 30 points or 0.17% at 17385.30.
Govt likely to launch OFS for Hindustan Aeronautics this month:
Govt initially looks to sell 0.15% stake or around 5 lakh shares via HAL’s OFS. It held 75.15% stake in HAL as of June 2021. Government may look at selling more stake (beyond 0.15%) if there is strong market demand. It has asked bankers to give a report on market demand for HAL's OFS. The stock was trading atRs 1,388.60, down Rs 16.10, or 1.15 percent. It has touched an intraday high of Rs 1,440.95 and an intraday low of Rs 1,380.
These stocks have jumped more than 10 percent each in intraday trade today so far:
Shares of Zee Entertainment Enterprises, Polson, Roto Pumps, KMC Speciality Hospitals, Zee Learn, Prakash Woollen & Synthetic Mills, Transglobe Foods, Gujarat Themis Biosyn, Vijaya Diagnostic Centre, YES Bank, Fredun Pharmaceuticals, Mold-Tek Packaging, Suryoday Small Finance Bank, Cantabil Retail India, Mold-Tek Packaging, Stylam Industries, Gujarat Hy-Spin and Hind Aluminium Industries jumped more than 10 percent each in intraday trade today so far.
Gaurav Garg, Head of Research CapitalVia Global Research:
The Indian benchmark started with record high after lower inflation data. Broader markets supported the upmove as the mid-cap and small-cap indices jumped over half a percent. All the sectorial indices were in the green with media, metals, banks and realty indices gaining the most. Asian markets were mixed on Tuesday with investors waiting for US inflation data.
Traders may take note of report that the oil marketing companies (OMCs) kept petrol, diesel prices unchanged on Tuesday for the ninth day in a row. If markets breaches the level of 17,450, we could expect again in momentum, leading to an upside projection till 17,500-17,700.
Sansera Engineering IPO updates
The initial public offering of automotive components maker Sansera Engineering has subscribed 20 percent as it received bids for 24.59 lakh equity shares against the offer size of 1.21 crore equity shares on September 14, the first day of bidding.
The offer size has been reduced to 1.21 crore equity shares from earlier 1.72 crore equity shares as the company mopped up Rs 382 crore from anchor investors on September 13, a day before the issue opening.
Nifty Media index jumps more than 10%
Zomato co-founder Gaurav Gupta quits
In a big development, Gaurav Gupta, one of the top executives of food tech platform Zomato has decided to leave the company, sources told Moneycontrol. Gupta, who joined Zomato in 2015 was elevated as Chief Operating Officer in 2018 and as founder in 2019. He was the face of the company in the run-up to the IPO, leading discussions with investors and the media.
August WPI inflation at 11.39% against 11.16% (MoM):
August WPI inflation came in at 11.39% against 11.16% (MoM) while August core WPI inflation at 11.2% against 10.8% (MoM). Manufactured products inflation at 11.4% against 11.2% (MoM). Primary articles inflation at 6.2% against 5.7% (MoM).
RBI to draw comfort from softening inflation
RBI may draw comfort from softening inflation, said domestic brokerage firm Kotak Securities in a report.
August CPI inflation came in lower than expected amid lower food inflation even as core inflation remained elevated.
"We expect the RBI to continue with its growth-centric focus in the near term as inflation continues to surprise on the downside. We estimate that the inflation trajectory is on average tracking 50 bps lower than RBI’s August projections," the brokerage firm said.
"We shift our expectation of RBI’s policy corridor normalization to February (at the earliest) once growth appears to be more durable as a large proportion of the population is fully vaccinated," Kotak said.
Nearly 300 stocks hit their upper circuits:
Nearly 300 stocks, including Meghmani Finechem, Raj Oil Mills, Lancer Container Lines, Axiscades Technologies, Zee Media Corporation, Windsor Machines, Shriram EPC and Siti Networks, hit their upper circuits in intraday trade on BSE.
More than 200 stocks hit their 52-week highs:
Over 200 stocks, including TCS, HCL Tech, Nestle, Bajaj Electricals, Britannia Industries, Dish TV, Hindalco Industries, Larsen & Toubro Infotech, L&T Technology Services, IRCTC, Info Edge, Pidilite Industries, Voltas, SRF and TeamLease Services, hit their fresh 52-week highs in intraday trade on BSE.
Yash Gupta, Equity Research Analyst, Angel Broking
Vijay Diagnostic Centre Limited IPO debut at premium of 8 percent to its upper band of the IPO price. The company is trading at price to earning of 67 times and EV/EBITDA OF 32 times based on FY2021 numbers which is on the higher side as compared to its peers. Looking at higher valuations and limited growth potential in its key geographies, we have a neutral outlook on Vijaya Diagnostics centre.
Sensex gainers and losers
Godawari Power Board approves stock split in the ratio of 1:2:
The board approved the proposal for sub-division of equity share of face value of Rs 10 each of the company into 2 equity shares of Rs 5 each, subject to approval of the
shareholders of the company.
Market update at 11 AM: Sensex is up 244.46 points or 0.42% at 58422.22, and the Nifty added 73.20 points or 0.42% at 17428.50
Nifty Auto added a percent led by Hero MotoCorp, Eicher Motors and Bajaj Auto
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
: We are inching to get past the 16,450 levels this morning. The Nifty has opened with a gap and if this sustains, we will climb higher to 17,550 and 17,750 as the next target levels. The level of 17,250 is a strong base for the markets and any dip or intra day correction can be utilized to buy for higher targets.
Vijaya Diagnostic Centre makes tepid Dalal Street debut, lists at 2 percent premium:
Vijaya Diagnostic Centre, the Hyderabad-based diagnostic chain operator that came out with an initial public offering in early September, debuted on Dalal Street at a 2 percent premium to the issue price of Rs 531 per share.
The stock listed at Rs 542.30 on the BSE, 2.13 percent higher than the issue price, while it opened 1.69 percent higher at Rs 540 on the National Stock Exchange. Vijaya Diagnostic’s public offer was subscribed 4.54 times compared with 64.54 times for specialty chemical company Ami Organics. Both issues were open for subscription from September 1 to 3.
Ami Organics makes a strong debut, shares list at 48% premium
Specialty chemicals company Ami Organics made a strong debut on the bourses, listing at a 48 percent premium against its IPO price of Rs 610 a share on September 14. On the BSE, the stock debuted at Rs 902, up 47.87 percent, while it opened 49.18 percent higher at Rs 910 on the National Stock Exchange.
The listing was better than analysts' expectations following a strong response the public offer. The initial public offering was subscribed 64.54 times during September 1-3, 2021, as investors bid for 42.22 crore shares against the offer size of 65.42 lakh shares.
Gravita India's step-down arm starts aluminium recycling unit in Mozambique
Gravita informed that a step down subsidiary of the company situated in Mozambique, East Africa has started commercial production of aluminium from its new recycling plant having an annual capacity of around 4,000 MTPA in addition to its existing lead recycling facility of 4,500 MTPA and is also in process of setting up of a new plastic recycling unit in Mozambique.
The company is expecting an additional revenue of approximately Rs 50 crore per annum coupled with gross margins of around 18% from this aluminium recycling plant. The stock was trading at Rs 204.90, up Rs 1.30, or 0.64 percent. It has touched an intraday high of Rs 211.60 and an intraday low of Rs 204.40.
Escorts signs MoU with IndusInd Bank for financial offerings to customers
Escorts Limited (Agri Machinery) has reinforced its relationship with IndusInd Bank with a formal Memorandum of Understanding that will pave the way for both companies to provide one of the best financial offerings to its customers. Escorts and IndusInd Bank will work together closely in understanding the financial needs of its customers and will jointly come up with various financial programs to enable customers invest in modern farm machinery to enhance their farm productivity and income, the company said in an exchange filing. The stock was trading at Rs 1,409.80, up Rs 31.55, or 2.29 percent. It has touched an intraday high of Rs 1,411.00 and an intraday low of Rs 1,377.80.
Market update at 10 AM: Sensex is up 172.25 points or 0.30% at 58350.01, and the Nifty added 50.90 points or 0.29% at 17406.20. HCL Tech, Adani Ports and Axis Bank are the top gainers while Zee Entertainment, IRCT and Ami Organics are the most active stocks.
COVID-19 India update
India adds less than 30,000 cases for third straight day, up 25,404 in the last 24 hours. Active cases at nearly 3-week low, down 12,062 in the last 24 hours. Recoveries rise by 37,127 and deaths by 339. Positivity rate at 1.78%, recovery rate at 97.58% and mortality rate at 1.33%.
Single-day testing at 14.31 lakh and vaccinations at 78.67 lakh. 7-day average for vaccinations remains above 70 lakh (71.82 lakh). Total cases at 3.33 crore, active 3.62 lakh, recoveries 3.25 crore and deaths 4.43 lakh.
Mutual Fund exposure to Zee Entertainment
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
: A major trend in the market this year has been the wide variations in sectoral performances. Metal, IT and Realty have been outperformers with YTD appreciation of 79.41%, 44.86% and 33.92% respectively while the erstwhile market darling, private banking, is languishing with a mere 9.39% appreciation YTD. Pharma too is underperforming with a modest 11.31% appreciation YTD. Two conclusions are possible from this one, the market is indicating where the near term earnings visibility lies and two, the underperforming banking space has some catching up to do.
Meanwhile, the 'buy on dips' strategy has been rewarding investors handsomely since all market corrections are happening intra-day. The better than expected CPI inflation numbers which came in at 5.3 % for August is very positive news. MPC can be expected to continue with the accommodative stance for an extended period of time.
Zee Entertainment shares hit 20% upper circuit today as shareholders seek removal of Puneet Goenka from the Board
Ravindra Rao,CMT, EPAT, VP- Head Commodity Research at Kotak Securities on gold:
COMEX gold trades little changed near $1793/oz after a 0.1% gain yesterday. Gold paused after recent losses as the US dollar came to a halt after testing 2-week high. Correction in bond yields and some ETF inflows also lent support. Also supporting gold price is rising inflation concerns, persisting virus risks, China’s regulatory crackdown measures and increasing geopolitical tensions. Gold may remain choppy ahead of inflation data however a reading in line with or lower than expectations may ease worries about Fed's tightening and lend support to gold prices.
DART Research on Zee Entertainment's largest shareholder demanding resignation of Punit Goenka as CEO and two independent directors
We believe the above move will be a mild positive from a medium to long term perspective ; however ,near term challenges persist in the form of transition for the new management to take over. The company has always been doing well in terms of business performance under the current CEO leadership , however outperformance vs industry average has converged sharply over the last 3 years due to 1) loss of share in the regional genre on the back of competitive intensity and 2) poor performance in the Hindi GEC space.
We believe appointment of a new CEO will pave way for a new strategy (transition towards short video, investments into large scale web series, innovation in content offerings) ,specially on digital, which will help it compete with global OTT giants and other large players like Disney, MX player etc.
We continue to maintain that transition towards digital is a challenge for broadcasters due to 1) higher content costs 2) below par user experience vs global peers 3) issue of distribution (shift from B2B to B2C).
Zee Entertainment: Resignation of Directors, Positive - Multiple re-rating
Oppenheimer/Invesco with 17.9% holding (largest shareholder) demanded for resignation of Punit Goenka, Manish Chokhani and Ashok Kurien (brother of Subash Chandra) from position of Directors. Later two have immediately resigned. IIAS had recommended shareholders for removal of Manish Chokhani and Ashok Kurien. Resignation of both the directors is positive.
Punit Goenka too may resign from directorship and countinue as CEO. This will be positive. If he resigns as MD & CEO then Zee may witness disruption in business. It has already saw almost 300-350 bps market share loss from peak to 17% now. Irrespective of whether Punit Goenka resigns or not as MD & CEO still the PE multiple would get upgraded. Activism by large shareholder is welcome. Expect stock to react significantly positive.
Zee Entertainment shares hit 10% upper circuit
Zee Entertainment Enterprises share price opened higher by 10 percent hitting upper circuit of Rs 205.45 on BSE as the company's largest shareholders called an EGM seeking removal of Puneet Goenka from the board.
Zee Entertainment's (ZEE's) largest shareholders, Invesco Developing Markets Fund and OFI Global China Fund LLC, which together hold 17.88 percent of the total paid-up share capital of the company, in a letter on September 11, called an extraordinary general meeting (EGM) seeking removal of Punit Goenka, Manish Chokhani and Ashok Kurien as Directors of the firm, the company said in a regulatory filing on September 13.
Market at open: Sensex is up 249.89 points or 0.43% at 58427.65, and the Nifty added 54.70 points or 0.32% at 17410.
ICICI Direct on Indian stock market
: Nifty opened lower on September 13 on the back of weak global cues but managed to rebound from lower levels as it closed almost flat. Looking at options data, 17300 Put option holds significant OI, which should act as immediate support. On the other hand, 17400 Call option holds noteworthy OI, which should act as immediate resistance. Nifty futures ended at a premium of 4 points while IV was down by 0.57%. The major Put base is at 17300 strike with 40 lakh shares while the major Call base is at the 17400 strike with 43 lakh shares.
Bank Nifty remained under pressure as it closed with a loss of 0.53%. According to options data, 36500 Call option witnessed substantial OI addition and it closed above 36500, which indicates that there is possibility of short covering, which would lead to 37000 levels.
Buzzing Stocks: Zee Entertainment, Sun Pharma, Wipro and other stocks in news today
Ahead of IPO, Sansera Engineering raises Rs 382 crore from anchor investors
Auto component maker Sansera Engineering Ltd said it has mopped up Rs 382 crore from anchor investors ahead of its initial share sale, which opens for public subscription on September 14. The company has decided to allocate 51,35,162 equity shares to anchor investors at Rs 744 apiece, valuing the transaction to Rs 382.05 crore, according to a circular uploaded on the BSE website on September 13.
The issue, with a price band of Rs 734-744 a share, will open for public subscription on September 14 and conclude on September 16.
Oil prices
Oil prices extended gains on Tuesday, hovering near a six-week high, on signs another storm could affect output in Texas this week even as the US industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast.
Brent crude rose 15 cents, or 0.2% to $73.66 a barrel by 0048 GTM, having gained 0.8% the previous day. U.S. West Texas Intermediate (WTI) crude also climbed 23 cents, or 0.3%, to $70.68 a barrel, after rising 1.1% on Monday.
