Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Firm global market cues triggered an upsurge in local benchmark indices as Sensex closed above the crucial 60,000 mark on back of buying in IT and realty stocks. In recent sessions, falling global crude oil prices and sliding US Dollar index have encouraged domestic investors to increase their equity exposure. Technically, Nifty has formed a shooting star kind of candle formation near the important resistance level. A trend reversal is possible only after the dismissal of 17850. Above the same, the index could touch the level of 18000-18100. On the flip side, below 17850 selling pressure is likely to increase and could retest the level of 17,750-17,700.
Vinod Nair, Head of Research, Geojit Financial Services
Domestic economy is witnessing strong vigour and the same is assisting a steady growth in Indian equities. A 15.5 percent YoY increase in bank credits during August suggests that the economy is recovering rapidly. Due to rising food prices, domestic inflation figures are predicted to show a gradual rise from 6.7 percent in July which could add volatility in the short-term. Meanwhile, the world equity market is ignoring the fact that the Fed will retain its aggressive rate hike strategy given high levels of inflation assuming that much is factored in.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty rose for the third consecutive session on September 12 aided by positive global cues. Among sectors, realty, consumer durables and IT indices rose the most. Advance decline ratio was positive at 1.64:1.
Broader market continues to do well, while the largecaps are seeing rotational buying and profit taking; thus leading the Nifty to a slow crawl up. Nifty could continue to face resistance at 17,992 while 17,807 could act as a support in the near term.
Titan, Adani Ports, Tech Mahindra were the top Nifty gainers
Rupee At Close | Rupee ends at 79.52/$ versus Friday’s close of 79.58/$
Markets At Close
Sensex ended the day 312.26 points higher or 0.52 percent at 60,105.40. Nifty added 97.50 points or 0.55 percentto close at 17,930.80. About 2013 shares advanced, 1326 shares declined, and 143 shares remained unchanged.
Among sectors, Nifty IT led the market rally. Tech Mahindra, Infosys and Wipro surged between 1.5-3 percent, and were among the top gainers on the BSE. Nifty Realty Index added 2 percent, led by Oberoi Realty, Godrej Properties, DLF and Brigade Enterprises
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
On Gold:Gold prices extended gains as dollar index declined ahead of US CPI data. The dollar index was trading more than 1 percent down near 107.61 during the day. US inflation is expected to have eased further from highs hit this year, a trend which may encourage the Federal Reserve to eventually bring down its pace of interest rate hikes. We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1710 and resistance at $1740 per ounce. MCX Gold October support lies at Rs 50,300 and resistance at Rs 50,900 per 10 grams.
On Crude Oil:Global oil prices may rebound towards the end of the year as supply is expected to tighten further when a European Union embargo on Russian oil takes effect on Dec 5. We expect crude oil prices to trade sideways to up with resistance at $89 per barrel with support at $85 per barrel.
Ashwin Patil, Senior Research Analyst at LKP Securities
Defense sector is buzzing currently on the back of a strong order book, orders from GOI under the Ministry of Defense, technological advancements and requirements according to the geopolitical environment and export orders. This gives us a visibility of upto 4-5 years as the country needs to match the international standards. Furthermore, profitability led by higher indigenisation theme, better operating leverage and higher contribution from non government orders should augur well for the margins. Valuations too seem comfortable to us for the entire sector. Therefore we are bullish on the sector, particularly on BEL due to additional positives like a lean balance sheet, better working capital management and emphasis on some non profitable non defense sectors.
IDBI Bank cuts lending rates on Overnight to 3-month tenures by 5-15 bps. Meanwhile, the bank has hiked lending rates on 6-month, 2-year tenures by 5 bps
UK Data Watch | UK economy grew 0.2 percent in July MoM vs estimate of 0.3 percent
Santosh Meena, Head of Research, Swastika Investmart
IT stocks are seeing some bargain buying after a healthy correction. Indian markets are near their all-time high however IT stocks are trading much below their 52-week highs. Thus, we are seeing some buying at lower levels. The leadership is in the hand of the domestic economy facing sectors like financials, auto, and industrials but there is some sectoral rotation, ahead of new highs in the market. FIIs are in buying mood and they are showing some interest in beaten-down IT names as global cues are also improving.
Why equity inflows are at a 10-month low? NS Venkatesh, CEO, AMFI says
“A lot of people are booking profits. It is the season of people going abroad for higher education. People need money to pay for fees, travel expenses, etc.”
Meanwhile, the total amount invested into funds is going up. There are indications of fresh funds coming in for NFOs, he adds.
Nifty Realty added 2 percent led by Godrej Properties, Oberoi Realty, Brigade Enterprises and DLF.
Ramkrishna Forgings to issue up to 46 lakh convertible warrants to promoters/public category at Rs 205 each on preferential basis
Market update
Sensex is up 421.28 points or 0.70 percentat 60,214.42, and the Nifty is up 128.30 points or 0.72 percentat 17,961.60.
NBFCs' asset growth set to touch four-year high in FY23: Crisil Ratings
The non-bank finance companies (NBFCs) segment has witnessed three consecutive years of constrained asset growth due to the COVID-19 pandemic, with the growth coming at 5 per cent in FY22, Crisil…... Read More
NTPC pays final dividend of Rs 2,909 cr for FY22. The final dividend is 30 percent of the paid-up equity share capital of the company
TVS Motor Company launches new marine blue colour for TVS NTORQ 125 Race Edition, priced at Rs 87,011 (ex-showroom, Delhi)
CAMS surges 5 percent
Motilal Oswal Financial Services initiated coverage on the stock with a ‘buy’ rating and a price target of Rs 3,000, implying an upside of up to 22 percent over the next 12 months.
HDFC Bank partners with National e-Governance Services to develop e-Bank guarantee
Zydus Lifesciences gets final US FDA nod and 180-days shared exclusivity for Cariprazine capsules; stock surges
Alert: Cariprazine capsules is used to treat episodes of depression in people
European stocks opened slightly higher on September 12, following a positive trend set at the end of last week and overnight in Asia-Pacific markets
Bharti Airtel arm Nxtra Data partners with Bloom Energy for fuel cell installation at its data center in Karnataka
"Nxtra will be the first data center company in India to deploy fuel cell technology to reduce carbon emissions at its data centers while unlocking cost and sustainability benefits" the company said in a press release.
Aban Offshore in settlement agreement with Central Bank of India; up 7 percent
In an exchange notice, Aban Offshore informed "Pursuant to the execution of settlement agreement with Central Bank of India and payment having been made accordingly, application filed by Central Bank of India against the Company under section 7 of Insolvency and Bankruptcy Code 2016 has been withdrawn today."
Realty stocks build strong gains; Oberoi Realty, Brigade Enterprises hit 52-week high
Titagarh Wagons up 2 percent
Titagarh Wagons has informed stakeholders that Government of Italy, through its investment arm – Invitalia has taken a strategic stake in Titagarh Firema Spa (TFA), a subsidiary of the company
Markets at 12 PM
Sensex is up 441.57 points or 0.74 percent at 60,234.71. Nifty has added 132.20 points or 0.74 percent at 17,965.50.
HAL surges 4.5 percent; hits 52-week high
Antique Stock Broking has initiated coverage on Hindustan Aeronautics Ltd (HAL) with a Buy call and increased target price to Rs 3140, up 30 percent from its current market price. HAL posted healthy earnings growth of 16 percentand 22 percent during FY21 and FY22, respectively. The brokerage firm expects growth will start picking up again from FY24, with sharp uptick in FY25 as execution of Tejas Light Combat Aircraft (LCA) gathers momentum.
SBI hits fresh 52-week high
Global rating agency Standard and Poor’s (S&P) has affirmed State Bank of India’s long-term rating 'BBB-' on improving asset quality. It also affirmed the short-term issuer credit rating 'A-3' and maintained stable outlook for the rating.
Bond yields slightly up ahead of inflation data
Indian government bond yields inched up on Monday, as market participants trimmed bond holdings ahead of key inflation data scheduled later in the day. The benchmark 10-year government bond yield was at 7.1777%.The yield fell six basis points to end at 7.1669% on Friday, posting its biggest such fall in sixweeks.
Oberoi Realty Large Trade | 5.8 lakh shares (0.15% equity) worth Rs 60 cr change hands at Rs 1,045 per share
Market at 11 AM
Sensex is up 355.73 points or 0.59 percentat 60,148.87. Nifty up 107.50 points or 0.60 percent at 17,940.80.
Gold Prices Today: Yellow metal may struggle on Fed's aggressive stance, US inflation data awaited
In the international market, gold bounced back after taking support near $1,700 but may struggle with Fed’s continuing emphasis on aggressive tightening, says Ravindra Rao of Kotak Securities.... Read More
US FDA issues Form 483 with 2 procedural observations after inspection of Ajanta Pharma’s formulation facility at Dahej. US FDA inspected the unit from Sep 5-9, 2022
Max Financial Services | Promoter creates pledge on 7.1 lakh shares (0.2% equity) on Sep 5
Happiest Minds announces expansion of its Noida campus
Happiest Minds Technologies on September 12 announced the expansion of its Noida facility (“Smiles 5”) increasing its delivery capacity and leveraging the area’s diverse high-technology talent pool. With the additional facility, the company will have a capacity of 450 in the NCR region.
Engineers India bags order worth Rs 249 cr from ONGC
JSW Steel August crude steel production up 22 percent at 16.76 lakh tonne vs 13.77 lakh tonne YoY
Tata Consumer rises over 1% amid buzz of stake buy in Bisleri
CG Power Large Trade | 18.9 lakh shares (0.14% equity) worth Rs 43.3 cr change hands at an average of Rs 229 per share
Tata Steel Large Trade | 33.5 lakh shares (0.3% equity) worth Rs 36 cr change hands at Rs 107 per share
Adani Ports, Ambuja Cements, Infosys, Nazara among most active stocks on NSE
Inox, PVR up 4 percent each. Take a look
Nifty IT up 2 percent: Infosys, Tech Mahindra top gainers
Sunteck Realty buzzing in trade
Company has acquired 7.25 acres land in Beverly Park at Mira Road, Mumbai. Revenue potential of the new project is estimated at approx Rs 3,000 cr
Union Bank of India has hiked lending rates by 5-35 bps across most tenures. Meanwhile, Indian Overseas Bank has hiked lending rates by 10 bps
DB Realty hits upper circuit
According to BusinessLine, Adani Realty, the luxury residential and commercial property arm of billionaire Gautam Adani, is in advanced talks for a merger with Mumbai-based DB Realty. Stock is up 5%, locked in upper circuit today
Anupam Rasayan down 4 percent
The company intimated exchanges that there was a fire incident at its Unit-6 of Sachin GIDC plant in Surat on September 10. Four people have died and 20 people are injured in the fire incident.
Market at open: Sensex is up 285.93 points or 0.48 percent at 60,079.07. Nifty gains 85.50 points or 0.48 percent at 17,918.80
Antique Stock Broking on HAL
Antique Stock Broking has initiated coverage on Hindustan Aeronautics Ltd (HAL) with a buy call and increased target price to Rs 3140, up 30% from its current market price.
"We believe that the company's stock will re-rate meaningfully due to strong order backlog with stable margins, and unprecedented order pipeline. Given the multi-year double digit earnings growth potential and robust return ratio profile of 20%+, we believe that the stock at 19x its FY24 EPS is attractively valued. Our target price of INR 3,140 is based on 25xFY24E earnings", Antique Stock Broking report added.
