Closing Bell: Sensex falls 400 points, Nifty ends below 17,900; IT, metals, realty top losers

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Markets are becoming nervous around the 18,000 mark and unable to sustain gains made on Wednesday. Nifty opened positive but wiped out its entire gains to close at day’s low with loss of 126 points. Nifty needs to sustain above 17,700-17,800 zones for the overall setup to remain positive. We expect market to remain in consolidation mode for next few days until the US Fed rate action is over. However intermittent volatility may not be ruled out due to adverse global cues.

Rupak De, Senior Technical Analyst, LKP Securities

Nifty found resistance around 18,100 leading to close in the red for the day. On the daily chart, a dark cloud cover pattern has formed suggesting waning bullishness. However, the short term trend remains positive as the Nifty closed above the falling trend line on the daily chart. On the lower end, support is visible at 17,700, below which the short term trend may become weak. On the higher end, resistance is visible at 17,900/18,100.

Mohit Nigam, Head - PMS, Hem Securities

Indian equity markets continued their weak trade in late afternoon session on the back of selling in realty and IT stocks. Traders were cautious after Fitch Ratings slashed India’s GDP growth projection for FY23 to 7 per cent, saying the economy is expected to slow against the backdrop of global economy, elevated inflation and high interest rate. Further, weakness also prevailed in the markets as India's merchandise trade deficit in August widened to $27.98 billion from $11.71 billion a year earlier.

In scrip specific, Tamilnad Mercantile Bank remained in focused, as it has debuted at Rs 510.00 on the BSE, down by 15 points or 2.86 percent from its issue price of Rs 525.

On the technical front, the key resistance level for Nifty is 18,000and on the downside 17,750 can act as strong support. Key resistance and support levels for Bank Nifty are 41,800 and 40,800 respectively.

Markets at close

Sensex is down 412.96 points or 0.68 percentat 59,934. Nifty shed 126.40 points or 0.70 percent, endingat 17,877.40. About 1648 shares advanced, 1754 shares declined, and 113 shares were unchanged.

Among sectors, Nifty IT was the top loser with Infosys and Tech Mahindra losing 3 percent each. Autos were in the fast lane as Maruti Suzuki surged 3.2 percent. Eicher Motors rallied 2.7 percent to join the Rs 1 trillion market cap club. Pharma and realty sectors took a beating too, losing over a percent.

Rupee at close | Rupee ends at 79.70/$ versus Wednesday’s close of 79.44/$

Mindtree builds digital command & control solution for L&T’s Gujarat green hydrogen plant

Redington enters into a strategic partnership with Google Cloud India; stock up 3 percent

Redington announced that it has entered into a strategic partnership with Google Cloud India. As a part of this collaboration, it will drive the distribution and adoption of Google Workspace and Google Cloud with SMBs, education and public sector, mid-market, and enterprise segments

MTAR Technologies bags orders worth Rs 540 cr in clean energy

Vinod Nair, Head of Research, Geojit Financial Services

The resilience of the domestic market is fuelled by the strong momentum of the banking sector. The major factors influencing the performance of banking stocks are asset quality, credit growth and FII activity. The recent rally in the market had largely taken into account the improving asset quality, while the market is yet to fully factor in the strong traction expected in credit demand.

FIIs turning net buyers is an additional catalyst supporting the trend. Even after factoring in the current rally, the Nifty Bank index is still attractive trading marginally above the long-term averages. While we continue to have a strong long-term outlook for the banking sector, especially for large private banks, we can't rule out the prospect of short-term profit booking due to the spillover effect of a recession in the global economy.

Who is driving the rally in auto pack? Take a look

CEAT surges 20 percent; locked in upper circuit

The company hosted its annual investor meet recently to highlight its strategic roadmap.The company aims to double exports revenue to Rs3500 crby FY26 from Rs 1800 crin FY22.Management emphasized its focus to increase market share across key segments and improve margin & return ratios.

Veranda

Air India will strive to increase its market share to at least 30 percent in the domestic market in the next 5 years

Tapan

Gold prices fell below $1700 on growing optimism over aggressive rate hike from US FED with surge in inflation numbers. The dollar index was up, lowering demand for precious metals. We expect gold prices to trade sideways-to-down for the day with COMEX spot gold support at $1676 and resistance at $1705 per ounce. MCX Gold October support lies at Rs 49,500 and resistance at Rs 50,100 per 10 gram.

NTPC declares the entire capacity of 20 MW Auraiya Floating Solar PV Project at Auraiya, UP, as commercially operational w.e.f. September 16

Alkem Labs receives Form 483 from US FDA with two observations for St. Louis, USA manufacturing unit 

European Markets Update

Aster DM Healthcare acquires 2 percent stake in Medcare Hospital LLC for Rs 51.5 crore

European markets start 

European markets were choppy at the start of the trading day on Thursday. The pan-European Stoxx 600 opened in the red before moving to a 0.15 percentgain, as banking stocks added more than 1 percent. FTSE and DAX added half a percent each.

NTPC in Focus

Country's largest power generation company has declared successful commissioning ofentire capacity of 20 MW Auraiya Floating Solar PV project in UP. With this, standalone installed and commercial capacity of NTPC will become 57489 MW, while group installed and commercial capacity of NTPC will become 70084 MW.

Fed hiking rates may move Dollar index to levels of 112.60 -113.30, says Emkay Wealth

As per a report by Emkay Wealth Management titled ‘Navigator’, the aggressive rate action by the US Fed to tame the inflation has led to a sharp appreciation in the US dollar. The continuous tightening by the Fed will push Dollar index to levels of 112.60-113.30. On the lower side, 106.40 and 104.50 are strong support levels for the Dollar index. The European Central Bank is on a rate tightening phase, and the aggressive hikes will take the Euro-Dollar to its original levels of 0.75-0.80.

Harsha Engineers International IPO Update

The public issue of Harsha Engineers International, the largest manufacturer of precision bearing cages in organised sector in India, has seen a healthy subscription so far. Investors have bought9.3 crore equity shares against an offer size of 1.68 crores, helping the offer subscribe 5.52 times on September 15, the second day of bidding.

Non-institutional investors looked aggressive from the day one itself, putting in bids11.75 times the allotted quota, while retail investors have bought shares5.96 times the portion set aside for them and employees booked 4.46 times.

The part set aside for qualified institutional buyers was subscribed9 percent so far on Thursday.

BPCL divestment is not on the table for now, but also not ruled out: Union Minister Hardeep Singh Puri

Astral acquires 15 percent equity of Seal IT Services for Rs 48 crore

With this acquisition, Astral’s total equity stake in Seal IT Services has increased from 80 percentto 95 percent

Market update at 12 PM: Sensex is down 339.62 points or 0.56% at 60007.35, and the Nifty shed 107.80 points or 0.60% at 17896.

Larsen & Toubro bags orders worth Rs 1,000-2,500 crore from Odisha government

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The water & effluent treatment business of L&T Construction has secured a repeat order from the Department of Water Resources, Government of Odisha, to execute a pressurized underground pipeline irrigation network system for the Right Command of Lower Suktel Irrigation Project. The project envisages to provide water to irrigate 27,000 Ha of Culturable Command Area (CCA) in the Balangir district of Odisha. The project scope involves Survey, Design, Engineering, Supply, Laying, Installation & Commissioning of MS, DI & HDPE pumping main & distribution network with all allied electromechanical & automation works. The stock was trading at Rs 1,962.00, up Rs 6.95, or 0.36 percent on BSE. It has touched an intraday high of Rs 1,984 and an intraday low of Rs 1,955.05.

Harsha Engineers International IPO updates

The public issue of Harsha Engineers International, the largest manufacturer of precision bearing cages in organised sector in India, has seen a healthy subscription so far. Investors have bought 8.55 crore equity shares against an offer size of 1.68 crores, helping the offer subscribe 5.08 times on September 15, the second day of bidding.

Non-institutional investors looked aggressive from the day one itself, putting in bids 10.97 times the allotted quota, while retail investors have bought shares 5.46 times the portion set aside for them and employees booked 3.95 times.

Royal Enfield parent Eicher Motors joins Rs 1-trillion market cap club

Maruti Suzuki hits 52-week high, up 3.5 percent after Bank Of America Securities raises target to Rs 10,500/sh

Nifty Bank slips nearly 500 points from highs

Nifty IT down over a percent. Take a look at the top losers

India VIX spikes 3 percent

GR Infraprojects down 4 percent 

The promoters of GR Infraprojects Ltd will offload up to 6.8 percent stake or around 65 lakh shares through an offer for sale (OFS) on September 15-16, as per a regulatory filing submitted by the company on September 14.

Balaji Amines up 2.5 percent

The company said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate, propylene carbonate, and propylene glycol plant will be ready to commence commercial production by the end of September 2022. In addition, it has also started construction in phase 2 of greenfield project (Unit IV) for 2 plants. The company has already received environmental clearance for this expansion.

Tamilnad Mercantile Bank debuts at 3 percent discount at Rs 495

Private sector lender Tamilnad Mercantile Bank opened at a minor discount of 2.94 percent to issue price on September 15, following lower-than-expected subscription to its initial public offer (IPO).The stock listed at Rs 510 on the BSE, and the opening tick on the NSE was Rs 495 against issue price of Rs 510 per share.

KPI Green Energy gains 3.6 percent

The company has received new order of 4.20 MW (comprising of 4.20 MW wind turbine and 3 MWdc solar) under wind-solar hybrid power project. The order is from Nouveau Jewellery LLP, Surat under 'captive power producer (CPP)' business segment.

Mid-sized banks trading higher ahead of the listing of Tamilnad Mercantile Bank

South Indian Bank surged 18 percent, Bank of Maharashtra advanced 2 percent, Central Bank of India rose 2.2 percent, Karnataka Bank gained 1.8 percent, Federal Bank 1.7 percent, Karur Vysya Bank 2.1 percent and Dhanlaxmi Bank was up 3.5 percent

Vedanta, PVR among most active shares on NSE and BSE

Tata Steel sheds one percent

The steel maker said its board of directors has approved fund raising through the issue of non-convertible debentures up to Rs 2,000 crore in two series. In one series, they will raise Rs 500 crore and in the second, Rs 1,500 crore

Bank Nifty hits new high of 41,840. Take a look at the top gainers

PVR Large Trade | 55 lakh shares (9 percent equity) worth Rs 1,040.5 cr change hands at avg Rs 1,892 per share

Sensex up 286.03 points or 0.47 percent at 60,633. Nifty up 82.20 points or 0.46 percent at 18,086

Anand James, Chief Market Strategist, Geojit Financial Services

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Nifty weekly contract has highest open interest at 18,100 for Calls and 17,700 for Puts while monthly contracts have highest open interest at 18,000 for Calls and 17,500 for Puts. Highest new OI addition was seen at 18,200 for Calls and 17,900 for Puts in weekly and at 18,000 for Calls and 16,500 for Puts in monthly contracts.

We are circumspect about chasing prices higher today and are biased towards seeing more dips. Alternatively, a direct rise above the 18,067/90 region could dispel doubts about the 18,600 trajectory.

Rupee Check

| Rupee opens at 79.52/$ versus Wednesday’s close of 79.44/$

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

There are two broad market trends now. One, globally markets have turned weak on renewed inflation concerns and the market consensus is that the Fed's terminal rate would be clearly above 4 percent. This will weigh on global markets.

Two, India's outperformance is strong and consistent. This has fundamental support from a strong economy and good earnings visibility. There is a clear message from the performance of S&P 500 (down 18 percent YTD) and Nifty (up 3.6 percent YTD). This divergence in performance between global and Indian markets has steam to sustain in the near-term.

Yesterday's strong market performance validates the success of the 'buy on dips' strategy. Even while remaining invested, investors should exercise some caution arising from high valuation.

Indiabulls Housing Finance raises lending rates by 10 bps

Fitch cuts India's GDP growth forecast for FY22/23 to 7 percent from 7.8 percent

-Fitch expects world GDP to grow by 2.4 percent in 2022
-Cuts India's FY24 GDP forecast to 6.7 percent from 7.4 percent
-Expects Eurozone and UK to enter recession later this year
-Forecasts that the US will suffer a mild recession in mid-2023

Rates at 4.5 percent would sink stocks by 20 percent: Ray Dalio

Ray Dalio, Co-Chairman of Bridgewater Associates, wrote in a Linkedin post, "I estimate that a rise in rates from where they are to about 4.5 percent will produce about a 20 percent negative impact on equity prices (on average, though greater for longer duration assets and less for shorter duration ones) based on the present value discount effect and about a 10 percent negative impact from declining incomes."

Nomura on CEAT

-Neutral Call, Target at Rs 1,273 per share
-Company looking to capitalise on strong exports/off-highway tyre demand
-Looking at some more price hikes
-EBITDA margin should recover to 10-12 percent
-Capex spend will come down to Rs 600-700 cr from FY24
-Capex coupled with a better mix should help achieve ROCE of 12-13 percent

Adani Wilmar is scouting for local and overseas acquisition targets

“We are looking at acquiring brands in staple foods and distribution companies to boost our consumer goods offering and reach,” Angshu Mallick, chief executive officer and managing director at Adani Wilmar, said in an interview on Wednesday. “We are expecting to conclude a couple of acquisitions by March" he added.