Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The underlying short term trend of Nifty continues to be positive. Present consolidation pattern could end soon and Nifty could resume its uptrend in the coming sessions. The upside levels to be watched around 12250 for the next 3-4 sessions. Immediate support is placed at 11850.
Ajit Mishra, VP - Research, Religare Broking:
Markets settled almost flat in a volatile trading session, taking a breather after the recent surge. The benchmark started with positive momentum led by optimism in global markets however profit-taking at higher levels gradually trimmed the gains as the session progressed. Even the announcements made by FM to stimulate consumer spending and capital expenditure failed to cheer investors’ mood. The Nifty settled marginally up to settle around 11,931 levels. The underperformance continued from the broader market indices as they lost in the range of 0.4-0.6%. On the sector front, defensive such asFMCG, IT and Healthcare ended in gains while all the other sectors ended lower wherein Oil & Gas, Metals and Telecom were top losers.
We believe, along with global cues, earnings announcements and macroeconomic data would dictate the market trend. Further, measures announced by FM to help revive the economy as well as spur demand would augur well for major sectors such asFMCG, Auto, Capital Goods, Banking etc. ahead. Amid all, we expect volatility to remain high thus traders should maintain extra caution in trade selection and risk management.
Vinod Nair, Head of Research at Geojit Financial Services:
To sustain the market trend, a lot will depend on the size and effectiveness of the stimulus. Cash voucher and advance scheme, sops to government employees, failed to cheer the market as it did not provide the required boost to the economy as expected. It is anticipated that there will be more measures revealed in the future. The market will look forward, with high hopes on Q2 results and an end to the moratorium saga. IT, Banks and FMCG will be the sectors under focus, in the near-term.
S Ranganathan, Head of Research at LKP Securities:
Markets ended in the Green today on the back of measures announced to boost consumer demand. Today shall also be remembered for the tepid 19% gain over its issue price as leveraged HNI Investors booked losses for what indeed was a resounding response to the IPO of Mazagon Dock in terms of over subscription.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The Nifty took a breather after crossing the psychological 12000 mark. This does not change anything in the short to medium term time frame. The markets continue to show a bullish indication and are aptly positioned to achieve the levels of 12200-12300. With good support at 11750-11800, any correction can be utilised to go long on the index.
Market Close
: After a strong start the benchmark indices erased some of the intraday gains but ended higher for the eight consecutive session on October 12 supported by the IT and pharma stocks.
At close, the Sensex was up 84.31 points or 0.21% at 40593.80, and the Nifty was up 16.80 points or 0.14% at 11931. About 927 shares have advanced, 1713 shares declined, and 184 shares are unchanged.
ITC, Infosys, UPL, Dr Reddy's and Asian Paints were among major gainers on the Nifty, while losers included Bharti Airtel, GAIL, JSW Steel, Tata Motors and HDFC Life.
Among sectors, except IT and pharma other sectoral indices ended in the red. BSE Midcap and Smallcap indices shed 0.4 percent each.
Arjun Yash Mahajan, Head Institutional Business at Reliance Securities:
Finance Ministry, through Rs 730 bn fiscal package, tried to give impetus to consumer demand and pick up in infrastructure activities, which can give a push to GDP. In our view, announcement of Rs 370 bn capital spending package including Rs 250 bn spending from Central in roads & highways and defense sector till 31st Mar’21 bode well for infrastructure companies as this may result in sharp improvement in new ordering as well as pick up infra development works.
However, government’s effort to stimulate consumers demand by offering advances and cash voucher schemes looks to be short term in nature and lacks commitment to have a sustainable growth. This may lead to a kind of destocking led demand improvement ahead of festivals or fiscal end. However, it may not necessarily result in a sustainable recovery. This may not entice the market.
Crude Updates
Oil prices fell on Monday as force majeure at Libya's largest oilfield was lifted, a Norwegian strike affecting production ended and US producers began restoring output after Hurricane Delta.
Nifty Media Index fell 2 percent dragged by the Zee Entertainment, Dish TV, Sun TV:
CLSA on Motherson Sumi:
Research house maintained outperform call and raises target to Rs 130 from Rs 120 per share. SAMIL’s businesses could scale up post merger with Motherson.
Company says, 80% of SAMIL’s businesses are consistent dividend payers and SAMIL business can sustain future growth through internal accruals, reported CNBC-TV18.
Market Updates
Benchmark indices erased all the intraday gains and trading flat in the volatile trade.
At 14:38 IST, the Sensex was down 0.54 points at 40508.95, and the Nifty was down 11 points or 0.09% at 11903.20. About 837 shares have advanced, 1618 shares declined, and 151 shares are unchanged.
Keshav Lahoti - Associate Equity Analyst, Angel Broking:
Multiplex will open from 15th October in most of the states of India after being shut down for 7 long months. As key regions of movie going audience Mumbai and Delhi is expected to open in November so in the initial few weeks, exhibitors will screen old hit movies. Recently, PVR management said that all the old films will be screened at hugely discounted rates. Although, all new content will be screened at pre covid rates. PVR CEO hopes to be back at pre-Covid levels by the end of the year.
We anticipate gradually recovery for the sector. There will be a lot of challenges for the multiplex business for the next couple of weeks. We are bullish on the multiplex stock considering that long term prospects of the business are still promising and stock prices have corrected ~40% due to Covid.
Rupee Closes
Indian rupee erased early gains and ended lower at 73.27 per dollar, amid volatile trade seen in the domestic equity market.It opened higher at 73.08 per dollar against Friday's close of 73.16 and remained in the range of 73.05-73.30.
Market Update
: Sensex is up 117.49 points or 0.29 percent at 40626.98, and the Nifty added 21.70 points or 0.18 percent at 11935.90. ITC, Power Grid and Infosys are the top gainers while HDFC Bank, Kotak Mahindra Bank and Vedanta are the most active stocks.
Among the sectors, the metal index is underperforing while the midcap and smallcap indices shed half a percent each.
Most active stocks on NSE in terms of volumes
Breaking News
: NSE rates are not updating on its website, according to CNBC-TV18.
Nish Bhatt, Founder & CEO, Millwood Kane International:
The seventh tranche of the Sovereign Gold Bond issue opens today, the price for this tranche is fixed at Rs 5,051/gram with a discount of Rs 50/gm for investors applying online. Investors looking to invest in Gold should take this route to avail dual benefits - avoid any overhead cost while buying/selling as compared to investing in physical gold, and benefit from the assured 2.5% interest payable per annum. Any portfolio should consist of Gold anywhere in the range of 10-15% or based on the risk-taking appetite of the investors.
Gold is considered as a safe haven and a hedge against inflation, investors will continue to flock until clarity emerges on the global economic recovery. Post touching life highs of over Rs 56,000/10 gm, the Gold price has corrected to trade near Rs 51,000 levels. The hope of the latest stimulus package by the US government getting cleared has given a push to Gold prices. Moving forward, US election outcome and its impact on the USD, clarity on the vaccine will give broader direction to the yellow metal.
European Markets trade flat:
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Amarjeet Maurya - AVP - Mid Caps, Angel Broking:
Currently Mazagon Dock is trading above the upper price band which is around Rs 192 (32% premium). We are recommending booking the profit mainly due to the PSU company ( involved project execution risk due project delay). Considering the current market scenario, we expect volatility in the market. Hence any correction in stock can be a good buying opportunity for long term investors.
Going ahead, Defence sector's outlook is positive mainly due to government initiative like the government has taken steps to ban 101 defence items, which clearly indicates government’s focus on indigenization to promote and create big opportunities in Indian defence sector. Going ahead, it would be beneficial for companies like MDSL. However, any correction in future would create buying opportunities in stock.
Market Updates
Benchmark indices pared the early gains but trading higher with Nifty above 11900.
At 12:39 IST, the Sensex was up 116.94 points or 0.29% at 40626.43, and the Nifty was up 22.40 points or 0.19% at 11936.60. About 873 shares have advanced, 1430 shares declined, and 170 shares are unchanged.
Crude Updates
Oil prices dropped for a second straight session on Monday as U.S. producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities:
Comex gold was trading modestly higher near $1,933/oz after 1.6 percent gain in the previous session. Gold is being supported by recent weakness in the US dollar and expectations of additional stimulus in the US despite political wrangling.
ETF investors continue to remain on the sidelines, showing a lack of buying interest among investors. Gold may witness choppy trade as market players assess development on the US stimulus deal but general bias may be on the upside because of a weaker dollar.
BSE Metal index shed 3 percent dragged by the Vedanta, JSW Steel, Hindustan Zinc:
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking:
Last week, Indian Rupee appreciated by 0.07 percent while the Dollar Index decreased by 0.29 percent. RBI decided to keep interest rates unchanged at 4 percent and monetary policy stance accommodative. RBI sees GDP contracting by 9.5 percent in FY21 but can expect recovery from Q4FY21.
US FED officials worried that a lack of further fiscal stimulus would jeopardize an economic recovery that was moving faster than expected, according to meeting minutes. The meeting featured extensive discussion about the economic outlook, as members said the economy was doing better than expected in good part because of the fiscal help provided by Washington. That support is in jeopardy as talks have broken down between the White House and congressional Democrats and may not resume before the November election.
As of today traders can go for sell in USDINR at 73.30, with the stop loss of 73.50 and for the target of 72.80. We are expecting appreciation in USDINR in short term and it may test 72.50 levels soon.
BSE on power failure:
BSE has complete back-up in place and don't expect any disruption in market activity, reported CNBC-TV18.
BSE also has a disaster recovery center in Hyderabad.
Nifty IT Index added 1 percent supported by the L&T Infotech, Coforge, Mindtree, Infosys:
There is a major power grid failure due to which supply is affected, said Adani Power.
As per grid safety protocols, Adani Power System has been able to sustain, Islanded and currently supplying to critical services in Mumbai via AEML Dahanu generation, reported CNBC- TV
Rupee Updates
Indian rupee is trading higher at 73.08 per dollar, amid buying seen in the domestic equity market.It opened higher at 73.08 per dollar against Friday's close of 73.16.
Yash Gupta - Equity Research Associate, Angel Broking:
As per the latest data available at exchanges, total 137.48 crores shares have been offered which is more than the required number of shares needed to acquire for successful delisting of the company. This share has been offered at different prices, maximum bids happening in between Rs 145 - Rs 165 as compared to floor price of Rs 87.25.
Currently the promoters own 50.14% of the shares in the company and will need to increase their holdings to at least 90% for successful delisting. As per the reverse book building process the discovered price works out to be Rs 320 which is significantly higher than the current market price. Now we need to see whether the promoter group accepts this offer or comes up with a counter offer.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking:
The way Nifty surpassed the August 31 high of 11,794 with some authority and is now within the kissing distance of 12,000, the positivity is likely to extend further. Importantly, the banking space which was following the benchmark in the entire recovery finally showed some dominance on Friday. This factor is very much in favor of the bulls, which may provide impetus for the extended rally.
The base has shifted higher and the previous resistance area of 11,700 – 11,450 should now be treated as a strong support. On the flipside, we are very much close to the psychological mark of 12,000. The moment it’s taken out, we may see a steady move towards 12,200 – 12,400 levels. Since, the banking index is back to 200-day SMA on the daily chart and the way it closed with complete gush in the space, a move beyond 24,000 would provide strong support to the benchmark index. However, we would like to highlight that since the move is extremely swift, anytime we can see some intraday profit booking and hence, one needs to position accordingly and be very fussy in stock selection.
Mumbai Metropolitan Region faces major power outage due to ‘interruption in supply’
Several parts of the Mumbai Metropolitan Region (MMR) started facing a major power outage starting around 10.00 am on October 12.
“The electric supply is interrupted due to TATAs incoming electric supply failure. Inconveniences is regretted,” Brihanmumbai Electric Supply and Transport (BEST) Electricity said in a tweet.
ICICIdirect:
The expected stimulus by the US Senate has triggered sharp moves in the dollar index. It has tested its two-week lows in the last session. The rupee has been trading in a range and is likely to remain under pressure at higher levels.
The dollar-rupee October contract on the NSE remained largely flat near 73.25 in the last session. The open interest has risen by 8.6% for October series in the last session.
Joe Kuruvilla appointed as CEO of Raymond Lifestyle:
Raymond announced the reinforcement of its management team at Raymond Lifestyle with the appointment of Joe Kuruvilla as the Chief
Executive Officer.
UTI AMC debuts with discount
UTI Asset Management Company, the eighth largest AMC in India in terms of mutual fund QAAUM, opened the first day first trade at a 11.51 percent discount on October 12.
The stock started off trade at Rs 490.25, a Rs 63.75 decline compared to IPO price of Rs 554 on the BSE. On the National Stock Exchange, the opening price stood at Rs 500, down 9.75 percent.
Mazagon Dock Shipbuilders debuts at premium
Mazagon Dock Shipbuilders, the country's largest defence company, started off the first day trade with a whopping 49 percent premium on October 12.
The stock opened at Rs 216.25 crore on the BSE, up by Rs 71.25 compared to issue price of Rs 145 per share.On the NSE, it kicked off trading at Rs 214.95, a 48.21 percent premium of over IPO price.
Rupee Opens
Indian rupee opened higher 73.08 at per dollar on Monday against Friday's close of 73.16, amid buying seen in the domestic equity market.
Vedanta delisting fails
Vedanta share price was locked in 10 percent lower circuit in the early trade on October 12 after the metal giant's delisting offer failed due to poor response.
Vedanta Resources and its indirect subsidiaries, Vedanta Holdings Mauritius and Vedanta Holdings Mauritius II, had informed that the delisting offer is deemed to have failed, company said in a release.
The total number of offer shares validly tendered by the public shareholders in the delisting offer is 1,25,47,16,610 shares, which is less than the minimum number of offer shares required to be accepted by the acquirers for the delisting offer to be successful. Thus, the delisting offer is deemed to have failed, it added.
Nifty PSU Bank index rose 2 percent led by the SBI, Canara Bank, Union Bank of India:
Buzzing
Shilpa Medicare share price fell 11 percent on October 12 after company received warning letter from United States Food and Drug Administration (USFDA).
The company in its release said that, it has received a warning letter yesterday on October 9, 2020 from the USFDA for its Jadcherla facility, Telangana.
Gainers and Losers on the BSE Sensex:
Market Opens
: Indian indices opened on strong note on October 12 with Nifty retested 12000 on the back of positive global markets.
At 09:17 IST, the Sensex was up 360.16 points or 0.89% at 40869.65, and the Nifty was up 97.70 points or 0.82% at 12011.90. About 809 shares have advanced, 326 shares declined, and 61 shares are unchanged.
GTPL Hathway Q2:
Consolidated net profit rose 56.6% YoY at Rs 45.1 crore versus Rs 28.8 crore, while revenue was down 7.1% at Rs 575.6 crore versus Rs 619.6 crore, reported CNBC-TV18.
Market at pre-open
: Benchmark indices are trading firm in the pre-opening session.
At 09:02 IST, the Sensex was up 116.75 points or 0.29% at 40626.24, and the Nifty was up 100.80 points or 0.85% at 12015.
